EXHIBIT 12 THE UPJOHN COMPANY AND CONSOLIDATED SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Dollar amounts in thousands) Three Months Year Ended December 31, Ended ------------------------------------------------ March 31, 1994 1993 1992 1991 1990 1989 -------------- ---- ---- ---- ---- ---- Earnings from continuing operations before accounting changes, income taxes and minority equity $174,286 $490,422 $696,707 $715,553 $651,800 $477,100 Less: Equity in undistributed net income (loss) of companies owned less than 50% 591 3,119 2,212 1,455 1,742 (1) -------- -------- -------- -------- -------- -------- 173,695 487,303 694,495 714,098 650,058 477,101 Add: Amortization of previously capitalized interest 1,167 4,009 3,799 3,109 2,922 2,669 Fixed charges included in the above: Interest and amortization of debt expense 13,143 58,381 58,155 46,851 53,502 31,693 Rental expense representative of an interest factor 3,479 13,914 13,095 10,800 10,940 9,462 -------- -------- -------- -------- -------- -------- Earnings from continuing operations before accounting changes, income taxes, minority equity and fixed charges $191,484 $563,607 $769,544 $774,858 $717,422 $520,925 ======== ======== ======== ======== ======== ======== Interest incurred and amortization of debt expense $ 16,286 $ 74,080 $ 69,163 $ 59,920 $ 61,146 $ 37,919 Rental expense representative of an interest factor 3,479 13,914 13,095 10,800 10,940 9,462 -------- -------- -------- -------- -------- -------- Total fixed charges $ 19,765 $ 87,994 $ 82,258 $ 70,720 $ 72,086 $ 47,381 ======== ======== ======== ======== ======== ======== Ratio of earnings to fixed charges 9.69 6.41 9.36 10.96 9.95 10.99 ==== ==== ==== ===== ==== =====