-33- Baxter International Inc. and Subsidiaries Exhibit 12 - Computation of Ratio of Earnings to Fixed Charges (Unaudited - in millions, except ratios) - ------------------------------------------------------------------------------- Year ended December 31 1994 1993(2) 1992 1991 1990 Income from continuing operations before income tax expense and cumulative effect of accounting change $801 $(330) $753 $688 $16 Add: Interest costs 242 232 221 231 264 Estimated interest included in rentals(1) 43 44 43 36 35 - ------------------------------------------------------------------------------- Fixed charges as defined 285 276 264 267 299 Interest costs capitalized (5) (10) (10) (9) (5) Losses of less than majority owned affiliates, net of dividends 18 27 34 32 22 - ------------------------------------------------------------------------------- Income as adjusted $1,099 $(37) $1,041 $978 $332 - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- Ratio of earnings to fixed charges 3.86 (.13) 3.94 3.66 1.11 - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- Nine months ended September 30 1995 Income before income taxes $660 Add: Interest costs 163 Estimated interest included in rentals (1) 32 - ------------------------------------------------------------------------------- Fixed charges as defined 195 Interest costs capitalized (4) Losses of less than majority owned affiliates, net of dividends 3 - ------------------------------------------------------------------------------- Income as adjusted $854 - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- Ratio of earnings to fixed charges 4.38 - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- - ------------------------ (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.