Exhibit 12
SCHERING-PLOUGH CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions)
(unaudited)
Years Ended December 31
Six
Months
Ended
June 30,
2005 2004 2003 2002 2001 2000
--------- -------- ------- -------- -------- -------
Income/(Loss) Before
Income Taxes $ 216 $ (168) $ (46) $ 2,563 $ 2,523 $ 3,188
Less: Equity Income 389 347 54 -- -- --
--------- -------- ------- -------- -------- -------
(Loss)/Income Before
Income Taxes and Equity
Income (173) (515) (100) 2,563 2,523 3,188
Add Fixed Charges:
Preference Dividends 43 34 -- -- -- --
Interest Expense 86 168 81 28 40 44
One-third of Rental
Expense 19 30 30 27 24 24
Capitalized Interest 6 20 11 24 25 20
--------- -------- ------- -------- -------- -------
Total Fixed Charges 154 252 122 79 89 88
Less: Capitalized Interest 6 20 11 24 25 20
Less: Preference Dividends 43 34 -- -- -- --
Add: Amortization of
Capitalized Interest 5 9 9 8 7 7
Add: Distributed Income of
Equity Investees 352 228 32 -- -- --
--------- -------- ------- -------- -------- -------
Earnings/(Loss) Before
Income Taxes and
Fixed Charges
(other than Capitalized
Interest) $ 289 $ (80) $ 52 $ 2,626 $ 2,594 $ 3,263
========= ======== ======= ======== ======== =======
Ratio of Earnings to Fixed
Charges 1.9 (0.3)* 0.4* 33.2 29.1 37.1
========= ======== ======= ======== ======== =======
* For the years ended December 31, 2004 and 2003, earnings were insufficient
to cover fixed charges by $332 million and $70 million, respectively.
"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.
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