EXHIBIT 12
American Home Products Corporation
Computation of Ratio of Earnings To Fixed Charges
(Thousands of dollars, except ratio amounts)
Years Ended December 31,
Earnings: 1996 1995 1994* 1993 1992
Earnings from continuing operations before
taxes on income $2,755,460 $2,438,698 $2,029,760 $1,992,665 $1,724,070
Add:
Fixed charges 605,011 705,047 155,187 91,500 63,403
Minority interest
in earnings of
consolidated subsidiary 32,496 5,642 5,303 4,027 3,803
Equity loss 0 0 1,691 0 0
Amoritization of capitalized interest 5,621 768 497 0 0
Less:
Minority interest in loss of consolidated
subsidiary 14,412 4,925 17,873 9,129 3,149
Equity income 10,431 8,129 0 0 0
Capitalized interest 0 7,681 9,792 14,898 0
Dividends on preferred stock of majority-
owned subsidiary 0 0 0 3,436 4,589
Total earnings as defined $3,373,745 $3,129,420 $2,164,773 $2,060,729 $1,783,538
Fixed Charges:
Interest and amortization of debt expense $571,414 $665,021 $116,661 $47,871 $35,503
Capitalized interest 0 7,681 9,792 14,898 0
Interest factor of rental expense (a) 33,597 32,345 28,734 25,295 23,311
Dividends on preferred stock of majority-owned
subsidiary 0 0 0 3,436 4,589
Total fixed charges as defined $605,011 $705,047 $155,187 $91,500 $63,403
Ratio of earnings to fixed charges 5.6 4.4 13.9 22.5 28.1
* - The 1994 results include one month of results of American Cyanamid
Company which was acquired by American Home Products Corporation
effective December 1, 1994. Assuming the acquisition took place
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.