Merck Sharp & Dohme 10-K 2008 FY Annual report

Exhibit 12

MERCK & CO., INC. AND SUBSIDIARIES

Computation of Ratios of Earnings to Fixed Charges

($ in millions except ratio data)

	Years Ended December 31,
	2008			2007			2006			2005			2004
Income Before Taxes	$	9,807.8		$	3,370.7		$	6,221.4		$	7,363.9		$	7,974.5
Add (Subtract):
One-third of rents		74.8			66.4			67.8			68.2			71.9
Interest expense, gross		251.3			384.3			375.1			385.5			293.7
Interest capitalized, net of amortization		40.9			31.8			29.4			(1.0	)		(21.3	)
Equity (income) loss from affiliates, net of distributions		(493.7	)		(454.3	)		(362.5	)		(615.9	)		(421.2	)
Preferred stock dividends, net of tax		120.0			120.0			120.0			120.0			151.0
Earnings as defined	$	9,801.1		$	3,518.9		$	6,451.2		$	7,320.7		$	8,048.6
One-third of rents	$	74.8		$	66.4		$	67.8		$	68.2		$	71.9
Interest expense, gross		251.3			384.3			375.1			385.5			293.7
Preferred stock dividends		145.0			158.1			166.0			166.7			207.1
Fixed Charges	$	471.1		$	608.8		$	608.9		$	620.4		$	572.7
Ratio of Earnings to Fixed Charges		21			6			11			12			14

For purposes of computing these ratios, “earnings” consist of income from continuing operations before taxes, one-third of rents (deemed by the Company to be representative of the interest factor inherent in rents), interest expense, net of amounts capitalized, equity (income) loss from affiliates, net of distributions, and dividends on preferred stock of subsidiary companies. “Fixed charges” consist of one-third of rents, interest expense as reported in the Company’s consolidated financial statements and dividends on preferred stock of subsidiary companies. Interest expense does not reflect interest on Financial Accounting Standards Board Interpretation No. 48,Accounting for Uncertainty in Income Taxes – an interpretation of FASB Statement No. 109, (“FIN 48”) liabilities.