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Content analysis
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8th grade Avg
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Exhibit 12
Abbott Laboratories
Computation of Ratio of Earnings to Fixed Charges
(Unaudited)
(dollars in millions)
|
| 2006 |
| 2005 |
| 2004 |
| 2003 |
| 2002 |
| |||||
EARNINGS FROM CONTINUING OPERATIONS |
| $ | 1,717 |
| $ | 3,372 |
| $ | 3,176 |
| $ | 2,505 |
| $ | 2,547 |
|
Taxes on earnings from continuing operations |
| 559 |
| 1,248 |
| 950 |
| 882 |
| 774 |
| |||||
Amortization of capitalized interest, net of capitalized interest |
| (28 | ) | (16 | ) | 5 |
| 11 |
| 8 |
| |||||
Minority interest |
| 8 |
| 9 |
| 11 |
| 11 |
| 18 |
| |||||
EARNINGS FROM CONTINUING OPERATIONS AS ADJUSTED |
| $ | 2,256 |
| $ | 4,613 |
| $ | 4,142 |
| $ | 3,409 |
| $ | 3,347 |
|
FIXED CHARGES Interest on long-term and short-term debt |
| 416 |
| 241 |
| 200 |
| 188 |
| 239 |
| |||||
Capitalized interest cost |
| 43 |
| 29 |
| 9 |
| 5 |
| 8 |
| |||||
Rental expense representative of an interest factor |
| 66 |
| 64 |
| 59 |
| 59 |
| 56 |
| |||||
TOTAL FIXED CHARGES |
| 525 |
| 334 |
| 268 |
| 252 |
| 303 |
| |||||
TOTAL ADJUSTED EARNINGS FROM CONTINUING OPERATIONS AVAILABLE FOR PAYMENT OF FIXED CHARGES |
| $ | 2,781 |
| $ | 4,947 |
| $ | 4,410 |
| $ | 3,661 |
| $ | 3,650 |
|
RATIO OF EARNINGS FROM CONTINUING OPERATIONS TO FIXED CHARGES |
| 5.3 |
| 14.8 |
| 16.5 |
| 14.5 |
| 12.0 |
|
NOTE: For the purpose of calculating this ratio, (i) earnings from continuing operations have been calculated by adjusting earnings from continuing operations for taxes on earnings from continuing operations; 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.