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Abbott Laboratories
Computation of Ratio of Earnings to Fixed Charges
(Unaudited)
(dollars in millions except ratios)
| Three Months Ended March 31, 2003 | |||
---|---|---|---|---|
Net Earnings | $ | 801 | ||
Add (deduct): | ||||
Taxes on earnings | 253 | |||
Minority interest | 3 | |||
Net Earnings as adjusted | $ | 1,057 | ||
Fixed Charges: | ||||
Interest on long-term and short-term debt | 48 | |||
Capitalized interest cost | 2 | |||
Rental expense representative of an interest factor | 16 | |||
Total Fixed Charges | 66 | |||
Total adjusted earnings available for payment of fixed charges | $ | 1,123 | ||
Ratio of earnings to fixed charges | 17.0 | |||
NOTE: For the purpose of calculating this ratio, (i) earnings have been calculated by adjusting net earnings for taxes on earnings; interest expense; capitalized interest cost, net of amortization; minority interest; and the portion of rentals representative of the interest factor, (ii) Abbott considers one-third of rental expense to be the amount representing return on capital, and (iii) fixed charges comprise total interest expense, including capitalized interest and such portion of rentals.