Abbott Laboratories (ABT) 10-Q 2018 Q3 Quarterly report

Exhibit 12

Abbott Laboratories and Subsidiaries

Computation of Ratio of Earnings to Fixed Charges

(Unaudited)

(dollars in millions)

	Nine Months Ended
	September 30, 2018
Earnings from Continuing Operations	$	1,679
Add (deduct):
Taxes on earnings	247
Capitalized interest cost, net of amortization	(11		)
Noncontrolling interests	19
Earnings from Continuing Operations, as adjusted	1,934
Fixed Charges:
Interest on long-term and short-term debt	640
Capitalized interest cost	24
Rental expense representative of an interest factor	99
Total Fixed Charges	763
Total adjusted earnings available for payment of fixed charges	$	2,697
Ratio of earnings to fixed charges	3.5

NOTE:   For the purpose of calculating this ratio, (i) earnings from continuing operations have been calculated by adjusting earnings for taxes on earnings; interest expense; capitalized interest cost, net of amortization; noncontrolling interests; 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.