Baxter International Inc. and Subsidiaries
Exhibit 12—Computation of Ratio of Earnings to Fixed Charges
(unaudited—in millions, except ratios)
| Restated | ||||||||||||||||||||
Years ended December 31, | 2003 (B) | 2002 (B) | 2001 (B) | 2000 (B) | 1999 | |||||||||||||||
Income from continuing operations before income taxes and cumulative effect of accounting changes | $ | 1,129 | $ | 1,386 | $ | 962 | $ | 956 | $ | 1,080 | ||||||||||
Fixed charges | ||||||||||||||||||||
Interest costs | 152 | 100 | 129 | 134 | 122 | |||||||||||||||
Estimated interest in rentals (A) | 51 | 46 | 36 | 32 | 29 | |||||||||||||||
Fixed charges as defined | 203 | 146 | 165 | 166 | 151 | |||||||||||||||
Adjustments to income | ||||||||||||||||||||
Interest costs capitalized | (37 | ) | (30 | ) | (22 | ) | (14 | ) | (10 | ) | ||||||||||
Net gains of less than majority-owned affiliates, net of dividends | (23 | ) | (1 | ) | (1 | ) | (2 | ) | (2 | ) | ||||||||||
Income as adjusted | $ | 1,272 | $ | 1,501 | $ | 1,104 | $ | 1,106 | $ | 1,219 | ||||||||||
Ratio of earnings to fixed charges | 6.27 | 10.28 | 6.69 | 6.66 | 8.07 | |||||||||||||||
| (A | ) | Represents the estimated interest portion of rents. | |||
| (B | ) | Excluding the following pre-tax special charges, the ratio of earnings to fixed charges was 7.93, 11.58, 9.53, and 8.39 in 2003, 2002, 2001 and 2000, respectively (as restated). | |||
| 2003: | $337 million charge for restructuring. | ||||
| 2002: | $163 million charge for in-process research and development and $26 million charge for restructuring. | ||||
| 2001: | $280 million charge for in-process research and development and other special charges and $189 million charge relating to discontinuing the A, AF and AX series dialyzers. | ||||
| 2000: | $286 million charge for in-process research and development and other special charges. | ||||
