EXHIBIT 12
WARNER-LAMBERT COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
YEARS ENDED DECEMBER 31,
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1998 1997 1996 1995 1994
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(DOLLARS IN MILLIONS)
Earnings before income taxes (less minority
interests)............................................ $1,766.2 $1,233.4 $1,107.7 $1,018.6 $ 913.1
Add:
Interest on indebtedness -- excluding amount
capitalized...................................... 113.3 167.0 145.9 122.7 93.7
Amortization of debt expense....................... .8 .4 .5 .4 .4
Interest factor in rent expense(a)................. 37.7 30.7 27.5 26.9 26.2
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Adjusted earnings............................. $1,918.0 $1,431.5 $1,281.6 $1,168.6 $1,033.4
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Fixed Charges:
Interest on indebtedness........................... $ 113.3 $ 167.0 $ 145.9 $ 122.7 $ 93.7
Capitalized interest............................... 19.2 8.3 9.6 10.1 9.4
Amortization of debt expense....................... .8 .4 .5 .4 .4
Interest factor in rent expense(a)................. 37.7 30.7 27.5 26.9 26.2
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Total fixed charges........................... $ 171.0 $ 206.4 $ 183.5 $ 160.1 $ 129.7
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Ratio of earnings to fixed charges...................... 11.2 6.9 7.0 7.3 8.0
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(a) Represents one third of rental expense, which the Company believes is a
reasonable approximation.