Exhibit 12
American Home Products Corporation
Computation of Ratio of Earnings To Fixed Charges (3)
(Thousands of dollars, except ratio amounts)
Years Ended December 31,
Six Months Ended ------------------------------------------------------------------------
June 30, 2000 1999 1998 1997 1996 1995
---------------- -------------- -------------- ------------- -------------- -------------
Earnings
Income (loss) from continuing operations
before federal and foreign taxes (4) $3,134,659 ($1,907,299) $3,089,936 $2,364,753 $2,398,866 $2,148,208
Add:
Fixed charges 209,835 403,328 371,844 513,860 601,927 701,781
Minority interests 48,310 30,301 620 2,421 13,677 4,085
Distributed equity income 0 0 771 0 0 0
Amortization of capitalized interest 1,058 1,803 1,487 1,057 5,621 768
Less:
Equity income 161 2,122 473 9,777 8,448 6,584
Capitalized interest 14,174 15,375 9,497 12,898 0 7,681
---------------- -------------- -------------- ------------- -------------- -------------
Total earnings (loss) as defined $3,379,527 ($1,489,364) $3,454,688 $2,859,416 $3,011,643 $2,840,577
================ ============== ============== ============= ============== =============
Fixed Charges:
Interest and amortization of debt expense $174,646 $343,271 $322,970 $461,370 $571,414 $665,021
Capitalized interest 14,174 15,375 9,497 12,898 0 7,681
Interest factor of rental expense (1) 21,015 44,682 39,377 39,592 30,513 29,079
---------------- -------------- -------------- ------------- -------------- -------------
Total fixed charges as defined $209,835 $403,328 $371,844 $513,860 $601,927 $701,781
================ ============== ============== ============= ============== =============
Ratio of earnings to fixed charges (2) (4) 16.1 -- 9.3 5.6 5.0 4.0
(1) A 1/3 factor was used to compute the portion of rental expenses deemed
representative of the interest factor.
(2) The results of operations for the year ended December 31, 1999 are
inadequate to cover total fixed charges as defined. The coverage deficiency
for the year ended December 31, 1999 is $403,328. Excluding the charge for
the REDUX and PONDIMIN litigation settlement of $4,750,000, the pro forma
ratio of earnings to fixed charges would be 8.1 for the year ended December
31, 1999.
(3) Amounts have been restated to reflect the Cyanamid Agricultural Products
business as a discontinued operation.
(4) The income from continuing operations before federal and foreign taxes for
the six months ended June 30, 2000 included the Warner-Lambert Company
termination fee of $1,709,380. Excluding the termination fee, the ratio of
earnings to fixed charges would be 8.0 for the six months ended June 30,
2000.