Exhibit 12
SCHERING-PLOUGH CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions)
Years Ended December 31 | |||||||||||
Nine Months Ended September 30, | |||||||||||
2003 | 2002 | 2001 | 2000 | 1999 | 1998 | ||||||
Income Before Income Taxes | $167 | $2,563 | $2,523 | $3,188 | $2,795 | $2,326 | |||||
Add Fixed Charges: | |||||||||||
Interest Expense | 49 | 28 | 40 | 44 | 29 | 19 | |||||
One-third of Rental Expense | 22 | 27 | 24 | 24 | 22 | 19 | |||||
Capitalized Interest | 7 | 24 | 25 | 20 | 12 | 9 | |||||
Total Fixed Charges | 78 | 79 | 89 | 88 | 63 | 47 | |||||
Less: Capitalized Interest | 7 | 24 | 25 | 20 | 12 | 9 | |||||
Add: Amortization of | |||||||||||
Capitalized Interest | 6 | 8 | 7 | 7 | 7 | 7 | |||||
Earnings Before Income | |||||||||||
Taxes and Fixed Charges | |||||||||||
(other than Capitalized | |||||||||||
Interest) | $244 | $2,626 | $2,594 | $3,263 | $2,853 | $2,371 | |||||
Ratio of Earnings to Fixed Charges |
3 |
33 |
29 |
37 |
45 |
50 | |||||
"Earnings" consist of income before income taxes and fixed charges (other than capitalized interest). "Fixed charges" consist of interest expense, capitalized interest and one-third of rentals which Schering-Plough believes to be a reasonable estimate of an interest factor on leases.