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