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Abbott Laboratories
Computation of Ratio of Earnings to Fixed Charges
(Unaudited)
(dollars in millions except ratio)
| Three Months Ended March 31, 2005 | ||||
---|---|---|---|---|---|
Earnings from Continuing Operations | $ | 838 | |||
Add (deduct): | |||||
Taxes on earnings from continuing operations | 340 | ||||
Capitalized interest cost, net of amortization | (2 | ) | |||
Minority interest | 2 | ||||
Earnings from Continuing Operations as adjusted | $ | 1,178 | |||
Fixed Charges: | |||||
Interest on long-term and short-term debt | 57 | ||||
Capitalized interest cost | 6 | ||||
Rental expense representative of an interest factor | 16 | ||||
Total Fixed Charges | 79 | ||||
Total adjusted earnings available for payment of fixed charges | $ | 1,257 | |||
Ratio of earnings to fixed charges | 15.9 | ||||
NOTE: For the purpose of calculating this ratio, (i) earnings have been calculated by adjusting earnings from continuing operations for taxes on earnings from continuing operations; 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.