Baxter International Inc. and Subsidiaries Exhibit 12 - Computation of Ratio of Earnings to Fixed Charges (Unaudited - in millions, except ratios) Year ended December 31 1993 1992 1991 1990 1989 Income (loss) from continuing operations before income tax expense (benefit) $(330) $753 $688 $ 16 $578 Add: Interest costs 232 221 231 264 291 Estimated interest included in rentals (1) 44 43 36 35 30 - - ------------------------------------------------------------------------------------------------------------------------ Fixed charges as defined 276 264 267 299 321 Interest costs capitalized (10) (10) (9) (5) (7) Losses of less than majority owned affiliates, net of dividends 27 34 32 22 15 - - ------------------------------------------------------------------------------------------------------------------------ Income (loss) as adjusted $(37) $1,041 $978 $332 $907 - - ------------------------------------------------------------------------------------------------------------------------ Ratio of earnings to fixed charges (2) (0.13) 3.94 3.66 1.11 2.83 - - ------------------------------------------------------------------------------------------------------------------------ Nine months ended September 30 1994 Income before income taxes and cumulative effect of accounting changes $565 Add: Interest costs 182 Estimated interest included in rentals (1) 33 - - ------------------------------------------------------------------------------------------------------------------------ Fixed charges as defined 215 Interest costs capitalized (5) Losses of less than majority owned affiliates, net of dividends 17 - - ------------------------------------------------------------------------------------------------------------------------ Income as adjusted $792 - - ------------------------------------------------------------------------------------------------------------------------ Ratio of earnings to fixed charges 3.68 - - ------------------------------------------------------------------------------------------------------------------------ <FN> (1) Represents the estimated interest portion of rents. (2) Earnings were inadequate to cover fixed charges for the year-ended December 31, 1993, due to the provision for the restructuring program costs. The amount of the coverage deficiency is $313 million.