EXHIBIT 12 THE UPJOHN COMPANY AND CONSOLIDATED SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Dollar amounts in thousands) Six Months Year Ended December 31, Ended ---------------------------------------------- June 30, 1995 1994 1993 1992 1991 1990 ------------- ---- ---- ---- ---- ---- Earnings from continuing operations before income taxes $376,777 $643,296 $480,037 $671,903 $715,553 $651,800 Less: Asgrow 21,786 26,940 Less: Equity in undistributed net income of companies owned less than 50% 99 2,264 3,119 2,212 1,455 1,742 -------- -------- -------- -------- -------- -------- 376,678 641,032 476,918 669,691 692,312 623,118 Add: Amortization of previously capitalized interest 2,475 4,417 4,009 3,799 3,109 2,922 Fixed charges included in the above: Interest and amortization of debt expense 26,313 51,496 58,381 58,155 46,851 53,502 Rental expense representative of an interest factor 6,451 12,903 12,221 11,495 10,563 9,426 -------- -------- -------- -------- -------- -------- Earnings from continuing operations before income taxes and fixed charges $411,917 $709,848 $551,529 $743,140 $752,835 $688,968 ======== ======== ======== ======== ======== ======== Interest incurred and amortization of debt expense $ 31,239 $ 63,599 $ 74,080 $ 69,163 $ 59,920 $ 61,146 Rental expense representative of an interest factor 6,451 12,903 12,221 11,495 10,563 9,426 -------- -------- -------- -------- -------- -------- Total fixed charges $ 37,690 $ 76,502 $ 86,301 $ 80,658 $ 70,483 $ 70,572 ======== ======== ======== ======== ======== ======== Ratio of earnings to fixed charges 10.93 9.28 6.39 9.21 10.68 9.76 ===== ==== ==== ==== ===== =====