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, Nine Months Ended -------------------------------------------------------------------- September 30, 2000 1999 1998 1997 1996 1995 ------------------ ----------- ---------- ---------- ---------- ---------- Earnings - -------- Income (loss) from continuing operations before federal and foreign taxes (4) $4,158,844 ($1,907,299) $3,089,936 $2,364,753 $2,398,866 $2,148,208 Add: - ---- Fixed charges 274,905 403,328 371,844 513,860 601,927 701,781 Minority interests 70,436 30,301 620 2,421 13,677 4,085 Distributed equity income 0 0 771 0 0 0 Amortization of capitalized interest 1,587 1,803 1,487 1,057 5,621 768 Less: - ----- Equity income 242 2,122 473 9,777 8,448 6,584 Capitalized interest 26,020 15,375 9,497 12,898 0 7,681 ------------------ ----------- ---------- ---------- ---------- ---------- Total earnings (loss) as defined $4,479,510 ($1,489,364) $3,454,688 $2,859,416 $3,011,643 $2,840,577 ================== =========== ========== ========== ========== ========== Fixed Charges: - -------------- Interest and amortization of debt expense $217,363 $343,271 $322,970 $461,370 $571,414 $665,021 Capitalized interest 26,020 15,375 9,497 12,898 0 7,681 Interest factor of rental expense (1) 31,522 44,682 39,377 39,592 30,513 29,079 ------------------ ----------- ---------- ---------- ---------- ---------- Total fixed charges as defined $274,905 $403,328 $371,844 $513,860 $601,927 $701,781 ================== =========== ========== ========== ========== ========== Ratio of earnings to fixed charges (2) (4) 16.3 - 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 nine months ended September 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 10.1 for the nine months ended September 30, 2000.