EXHIBIT 12 American Home Products Corporation Computation of Ratio of Earnings To Fixed Charges (Thousands of dollars, except ratio amounts) Three Months Ended Years Ended December 31, ------------------- -------------------------------------------------------------------------- Earnings: March 31,1999 1998 1997 1996 1995 1994 (1) ------------------- --------- ---------- ---------- ---------- ----------- Income from continuing operations before federal and foreign taxes $914,497 $3,585,460 $2,814,707 $2,755,460 $2,438,698 $2,029,760 Add: Fixed charges 96,236 376,253 518,661 605,011 705,047 155,187 Minority interests 4,151 2,177 721 18,084 717 (12,570) Distributed equity income 0 920 0 0 0 0 Amortization of capitalized interest 452 1,487 1,057 5,621 768 497 Less: Equity income/(loss) 1,506 522 10,840 10,431 8,129 (1,691) Capitalized interest 3,960 9,497 12,898 0 7,681 9,792 ----------- ----------- ---------- ---------- ---------- ----------- Total earnings as defined $1,009,870 $3,956,278 $3,311,408 $3,373,745 $3,129,420 $2,164,773 =========== =========== ========== ========== ========== =========== Fixed Charges: Interest and amortization of debt expense $81,254 $322,970 $461,370 $571,414 $665,021 $116,661 Capitalized interest 3,960 9,497 12,898 0 7,681 9,792 Interest factor of rental expense (2) 11,022 43,786 44,393 33,597 32,345 28,734 ----------- ----------- ---------- ---------- ---------- ----------- Total fixed charges as defined $96,236 $376,253 $518,661 $605,011 $705,047 $155,187 =========== =========== ========== ========== ========== =========== Ratio of earnings to fixed charges 10.5 10.5 6.4 5.6 4.4 13.9 (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. (2) A 1/3 factor was utilized to compute the portion of rental expenses deemed representative of the interest factor.