Exhibit 12
SCHERING-PLOUGH CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions)
Years Ended December 31
Six
Months
Ended
June 30,
2004 2003 2002 2001 2000 1999
-------- -------- -------- -------- -------- --------
(Loss)/Income Before
Income Taxes $ (173) $ (46) $ 2,563 $ 2,523 $ 3,188 $ 2,795
Less: Equity Income 154 54 - - - -
-------- -------- -------- -------- -------- --------
(Loss)/Income Before
Income Taxes and Equity
Income (327) (100) 2,563 2,523 3,188 2,795
Add Fixed Charges:
Interest Expense 91 81 28 40 44 29
One-third of Rental
Expense 16 30 27 24 24 22
Capitalized Interest 9 11 24 25 20 12
-------- -------- -------- -------- -------- --------
Total Fixed Charges 116 122 79 89 88 63
Less: Capitalized Interest 9 11 24 25 20 12
Add: Amortization of
Capitalized Interest 5 9 8 7 7 7
Add: Distributed Income of
Equity Investees 65 32 - - - -
-------- -------- -------- -------- -------- --------
(Loss)/Earnings Before
Income Taxes and
Fixed Charges
(other than Capitalized
Interest) $ (150) $ 52 $ 2,626 $ 2,594 $ 3,263 $ 2,853
======== ======== ======== ======== ======== ========
Ratio of Earnings to Fixed
Charges (1.3)* 0.4** 33.2 29.1 37.1 45.3
======== ======== ======== ======== ======== ========
* For the six months ended June 30, 2004, earnings were insufficient to cover
fixed charges by $266.
** For the year ended December 31, 2003, earnings were insufficient to cover
fixed charges by $70.
"Earnings" consist of (loss)/income before income taxes and equity income, plus
fixed charges (other than capitalized interest), amortization of capitalized
interest and distributed income of equity investee. "Fixed charges" consist of
interest expense, capitalized interest and one-third of rentals which
Schering-Plough believes to be a reasonable estimate of an interest factor on
leases.