EXHIBIT 12
American Home Products Corporation
Computation of Ratio of Earnings To Fixed Charges
(Thousands of dollars, except ratio amounts)
Nine Months Ended Years Ended December 31,
---------------------------------------------------------------------------------
Earnings: September 30,1999 1998 1997 1996 1995 1994 (1)
----------------- ---------- ---------- ---------- ---------- ----------
Income (loss) from continuing
operations before federal and
foreign taxes ($2,724,629) $3,585,460 $2,814,707 $2,755,460 $2,438,698 $2,029,760
Add:
Fixed charges 293,146 376,253 518,661 605,011 705,047 155,187
Minority interests 21,875 2,177 721 18,084 717 (12,570)
Distributed equity income - 920 - - - -
Amortization of capitalized interest 1,352 1,487 1,057 5,621 768 497
Less:
Equity income/(loss) 4,547 522 10,840 10,431 8,129 (1,691)
Capitalized interest 7,840 9,497 12,898 - 7,681 9,792
------------ ---------- ---------- ---------- ---------- ----------
Total earnings (loss) as defined ($2,420,643) $3,956,278 $3,311,408 $3,373,745 $3,129,420 $2,164,773
============ ========== ========== ========== ========== ===========
Fixed Charges:
Interest and amortization of debt
expense $252,239 $322,970 $461,370 $571,414 $665,021 $116,661
Capitalized interest 7,840 9,497 12,898 - 7,681 9,792
Interest factor of rental
expense (2) 33,067 43,786 44,393 33,597 32,345 28,734
------------ ---------- ---------- ---------- --------- ----------
Total fixed charges as defined $293,146 $376,253 $518,661 $605,011 $705,047 $155,187
============ ========== ========== ========== ========= ==========
Ratio of earnings to fixed
charges (3) - 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.
(3) The results of operations for the nine months ended September 30, 1999 are
inadequate to cover total fixed charges as defined. The coverage
deficiency for the nine months ended September 30, 1999 is $293,146.
Excluding the charge for the litigation settlement and related costs of
$4,750,000, the pro forma ratio of earnings to fixed charges would
be 7.9 for the nine months ended September 30, 1999.