EXHIBIT 12 WARNER-LAMBERT COMPANY AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Dollars in millions) Years Ended December 31, Three Months Ended -------------------------------------------- March 31, 1995 1994 1993 1992 1991 1990 ---------------- ---- ---- ---- ---- ---- Earnings before income taxes and accounting changes (less minority interests) $ 278.6 $ 913.1 $ 318.5 $ 858.2 $ 221.5 $ 680.7 Add: Interest on indebtedness- excluding amount capitalized 29.2 93.7 64.2 80.8 58.2 68.7 Amortization of debt expense .1 .4 .5 .6 .4 .3 Interest factor in rent expense (a) 6.5 26.2 25.4 23.4 22.3 20.6 ------- -------- ------- ------- ------- ------- Adjusted earnings $ 314.4 $1,033.4 $ 408.6 $ 963.0 $ 302.4 $ 770.3 ======= ======== ======= ======= ======= ======= Fixed charges: Interest on indebtedness $ 29.2 $ 93.7 $ 64.2 $ 80.8 $ 58.2 $ 68.7 Capitalized interest 2.8 9.4 8.6 8.1 9.4 5.2 Amortization of debt expense .1 .4 .5 .6 .4 .3 Interest factor in rent expense (a) 6.5 26.2 25.4 23.4 22.3 20.6 ------- -------- ------- ------- ------- ------- Total fixed charges $ 38.6 $ 129.7 $ 98.7 $ 112.9 $ 90.3 $ 94.8 ======= ======== ======= ======= ======= ======= Ratio of earnings to fixed charges 8.1 8.0 4.1(b) 8.5 3.3(c) 8.1 ======= ======== ======= ======= ======= ======= (a) Represents one third of rental expense, which the company believes is a reasonable approximation. (b) The company's ratio of earnings to fixed charges for 1993 would have been 9.5 excluding the restructuring charge of $525.2 million. (c) The company's ratio of earnings to fixed charges for 1991 would have been 9.4 excluding the restructuring charge of $544.0 million.