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Exhibit 12
Abbott Laboratories
Computation of Ratio of Earnings to Fixed Charges
(Unaudited)
(dollars in millions except ratios)
| Nine Months Ended September 30, 2003 | |||
---|---|---|---|---|
Net Earnings | $ | 1,809 | ||
Add (deduct): | ||||
Taxes on earnings | 683 | |||
Amortization of capitalized interest, net of capitalized interest | 8 | |||
Minority interest | 8 | |||
Net Earnings as adjusted | $ | 2,508 | ||
Fixed Charges: | ||||
Interest on long-term and short-term debt | 143 | |||
Capitalized interest cost | 4 | |||
Rental expense representative of an interest factor | 47 | |||
Total Fixed Charges | 194 | |||
Total adjusted earnings available for payment of fixed charges | $ | 2,702 | ||
Ratio of earnings to fixed charges | 13.9 | |||
NOTE: For the purpose of calculating this ratio, (i) earnings have been calculated by adjusting net earnings for taxes on earnings; interest expense; amortization of capitalized interest, net of capitalized interest; 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.
Exhibit 12 Abbott Laboratories Computation of Ratio of Earnings to Fixed Charges (Unaudited) (dollars in millions except ratios)