Exhibit 12
SCHERING-PLOUGH CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions)
Nine
Months
Ended
September 30, Years Ended December 31
2004 2003 2002 2001 2000 1999
---- ---- ---- ---- ---- ----
(Loss)/Income Before
Income Taxes $ (140) $(46) $ 2,563 $2,523 $3,188 $2,795
Less: Equity Income 249 54 - - - -
-------- ---- ------- ------ ------ ------
(Loss)/Income Before
Income Taxes and Equity
Income (389) (100) 2,563 2,523 3,188 2,795
Add Fixed Charges:
Preference Dividends 15 - - - - -
Interest Expense 130 81 28 40 44 29
One-third of Rental
Expense 24 30 27 24 24 22
Capitalized Interest 14 11 24 25 20 12
-------- ---- ------- ------ ------ ------
Total Fixed Charges 183 122 79 89 88 63
Less: Capitalized Interest 14 11 24 25 20 12
Less: Preference Dividends 15 - - - - -
Add: Amortization of
Capitalized Interest 8 9 8 7 7 7
Add: Distributed Income of
Equity Investees 146 32 - - - -
-------- ---- ------- ------ ------ ------
(Loss)/Earnings Before
Income Taxes and
Fixed Charges
(other than Capitalized
Interest) $ (81) $ 52 $ 2,626 $2,594 $3,263 $2,853
======== ==== ======= ====== ====== ======
Ratio of Earnings to Fixed
Charges (0.4)* 0.4 ** 33.2 29.1 37.1 45.3
======== ==== ======= ====== ====== ======
* For the nine months ended September 30, 2004, earnings were insufficient to
cover fixed charges by $264.
** 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 and preference dividends),
amortization of capitalized interest and distributed income of equity investee.
"Fixed charges" consist of interest expense, capitalized interest, preference
dividends and one-third of rentals which Schering-Plough believes to be a
reasonable estimate of an interest factor on leases.