EXHIBIT 12
WARNER-LAMBERT COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN MILLIONS)
YEARS ENDED DECEMBER 31,
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1994 1993 1992 1991 1990
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Earnings before income taxes and accounting changes.... $ 913.1 $318.5 $858.2 $221.5 $680.7
Add:
Interest on indebtedness -- excluding amount
capitalized 93.7 64.2 80.8 58.2 68.7
Amortization of debt expense...................... .4 .5 .6 .4 .3
Interest factor in rent expense(a)................ 26.2 25.4 23.4 22.3 20.6
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Adjusted Earnings............................ $1,033.4 $408.6 $963.0 $302.4 $770.3
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Fixed Charges:
Interest on indebtedness.......................... $ 93.7 $ 64.2 $ 80.8 $ 58.2 $ 68.7
Capitalized interest.............................. 9.4 8.6 8.1 9.4 5.2
Amortization of debt expense...................... .4 .5 .6 .4 .3
Interest factor in rent expense(a)................ 26.2 25.4 23.4 22.3 20.6
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Total Fixed Charges.......................... $ 129.7 $ 98.7 $112.9 $ 90.3 $ 94.8
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Ratio of earnings to fixed charges..................... 8.0 4.1(b) 8.5 3.3(c) 8.1
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(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.