EXHIBIT (12) THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES ============================================= COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES ------------------------------------------------- Millions of Dollars Nine Months Ended Years Ended June 30 March 31 -------------------------------------------------- ----------------- 1994 1995 1996 1997 1998 1998 1999 ------ ------ ------ ------ ------ ------ ------ EARNINGS, AS DEFINED Earnings from operations before income taxes after eliminating undistributed earnings of equity method investees $3,307 $4,022 $4,695 $5,274 $5,704 $4,723 $5,065 Fixed charges, excluding capitalized interest 569 571 576 534 639 466 562 ------ ------ ------ ------ ------ ------ ------ TOTAL EARNINGS, AS DEFINED $3,876 $4,593 $5,271 $5,808 $6,343 $5,189 $5,627 ====== ====== ====== ====== ====== ====== ====== FIXED CHARGES, AS DEFINED Interest expense including capitalized interest $ 501 $ 511 $ 493 $ 457 $ 548 $ 395 $ 491 1/3 of rental expense 87 83 92 77 91 71 71 ------ ------ ------ ------ ------ ------ ------ TOTAL FIXED CHARGES, AS DEFINED $ 588 $ 594 $ 585 $ 534 $ 639 $ 466 562 ====== ====== ====== ====== ====== ====== ====== RATIO OF EARNINGS TO FIXED CHARGES 6.6 7.7 9.0 10.9 9.9 11.0 10.0