EXHIBIT 12 WARNER-LAMBERT COMPANY AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Dollars in millions) Years Ended December 31, Six Months Ended ---------------------------------------------- June 30, 1998 1997 1996 1995 1994 1993 ----------------- ---- ---- ---- ---- ---- Earnings before income taxes and accounting changes (less minority interests) $869.6 $1,233.4 $1,107.7 $1,018.6 $ 913.1 $318.5 Add: Interest on indebtedness- excluding amount capitalized 62.0 167.0 145.9 122.7 93.7 64.2 Amortization of debt expense .5 .4 .5 .4 .4 .5 Interest factor in rent expense (a) 15.4 30.7 27.5 26.9 26.2 25.4 ------ -------- -------- -------- ------- ------ Adjusted earnings $947.5 $1,431.5 $1,281.6 $1,168.6 $1,033.4 $408.6 ====== ======== ======== ======== ======== ====== Fixed Charges: Interest on indebtedness $ 62.0 $ 167.0 $ 145.9 $ 122.7 $ 93.7 $ 64.2 Capitalized interest 10.0 8.3 9.6 10.1 9.4 8.6 Amortization of debt expense .5 .4 .5 .4 .4 .5 Interest factor in rent expense (a) 15.4 30.7 27.5 26.9 26.2 25.4 ------ -------- -------- -------- -------- ------ Total fixed charges $ 87.9 $ 206.4 $ 183.5 $ 160.1 $ 129.7 $ 98.7 ====== ======== ======== ======== ======== ====== Ratio of earnings to fixed charges 10.8 6.9 7.0 7.3 8.0 4.1(b) ====== ======== ======== ======== ======== ====== (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 charges of $525.2.