Exhibit 12 AMERICAN HOME PRODUCTS CORPORATION RATIO OF EARNINGS TO FIXED CHARGES (Thousands of dollars, except ratio amounts) Year Ended December 31, ----------------------------------------------------------------- Earnings 1994* 1993 1992 1991 1990 1989 ---------- ---------- ---------- ---------- ---------- ---------- Earnings from continuing operations before taxes on income $2,029,760 $1,992,665 $1,724,070 $1,759,810 $1,828,278 $1,414,322 Add: Fixed charges 155,187 91,500 63,403 50,554 154,905 60,908 Minority interest in earnings of consolidated subsidiary 5,303 4,027 3,803 3,823 3,215 2,955 Minority interest in loss of consolidated subsidiary (17,873) (9,129) (3,149) - - - Equity loss 1,691 - - - - - Amortization of capitalized interest 497 - - - - - Less: Capitalized interest 9,792 14,898 - - - - Dividends on preferred stock of majority-owned subsidiary - 3,436 4,589 - - - ---------- ---------- ---------- ---------- ---------- ---------- Total earnings as defined $2,164,773 $2,060,729 $1,783,538 $1,814,187 $1,986,398 $1,478,185 ========== ========== ========== ========== ========== ========== Fixed Charges Interest and amortization of debt expense $116,661 $47,871 $35,503 $31,431 $136,225 $42,560 Capitalized interest 9,792 14,898 - - - - Interest factor of rental expense (a) 28,734 25,295 23,311 19,123 18,680 18,348 Dividends on preferred stock of majority-owned subsidiary - 3,436 4,589 - - - -------- ------- ------- ------- -------- ------- Total fixed charges as defined $155,187 $91,500 $63,403 $50,554 $154,905 $60,908 ======== ======= ======= ======= ======== ======= Ratio of earnings to fixed charges 14 23 28 36 13 24 * - The 1994 results include one-month results of American Cyanamid Company which was acquired by American Home Products in December in a purchase transaction. Assuming the acquisition took place on January 1, 1994 the pro forma ratio of earnings to fixed charges would be 2.9 for the year ended December 31, 1994. (a)- A 1/3 factor was utilized to compute the portion of rental expenses deemed representative of the interest factor.