EXHIBIT 12
WARNER-LAMBERT COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
YEARS ENDED DECEMBER 31,
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1996 1995 1994 1993 1992
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(DOLLARS IN MILLIONS)
Earnings before income taxes and accounting changes
(less minority interests)............................. $1,107.7 $1,018.6 $ 913.1 $318.5 $858.2
Add:
Interest on indebtedness - excluding amount
capitalized...................................... 145.9 122.7 93.7 64.2 80.8
Amortization of debt expense....................... .5 .4 .4 .5 .6
Interest factor in rent expense(a)................. 27.5 26.9 26.2 25.4 23.4
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Adjusted earnings............................. $1,281.6 $1,168.6 $1,033.4 $408.6 $963.0
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Fixed Charges:
Interest on indebtedness........................... $ 145.9 $ 122.7 $ 93.7 $ 64.2 $ 80.8
Capitalized interest............................... 9.6 10.1 9.4 8.6 8.1
Amortization of debt expense....................... .5 .4 .4 .5 .6
Interest factor in rent expense(a)................. 27.5 26.9 26.2 25.4 23.4
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Total fixed charges........................... $ 183.5 $ 160.1 $ 129.7 $ 98.7 $112.9
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Ratio of earnings to fixed charges..................... 7.0 7.3 8.0 4.1(b) 8.5
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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.