Baxter International Inc. and Subsidiaries
Exhibit 12 - Computation of Ratio of Earnings to Fixed Charges
(unaudited - in millions, except ratios)
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Years ended December 31, 2001 2000 1999 1998 1997
(B) (B) (B) (B)
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Income from continuing operations
before income taxes and cumulative
effect of accounting change $ 964 $ 946 $1,052 $493 $570
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Fixed charges
Interest costs 130 135 123 152 166
Estimated interest in rentals (A) 36 33 30 26 26
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Fixed charges as defined 166 168 153 178 192
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Adjustments to income
Interest costs capitalized (22) (14) (10) (4) (6)
Losses of less than majority owned
affiliates, net of dividends (1) (2) (2) -- --
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Income as adjusted $1,107 $1,098 $1,193 $667 $756
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Ratio of earnings to fixed charges 6.67 6.54 7.80 3.75 3.94
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Nine months ended September 30, 2002
(B)
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Income before income taxes $1,041
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Fixed charges
Interest costs 73
Estimated interest in rentals (A) 27
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Fixed charges as defined 100
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Adjustments to income
Interest costs capitalized (19)
Losses of less than majority-owned
affiliates, net of dividends --
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Income as adjusted $1,122
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Ratio of earnings to fixed charges 11.22
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(A) Represents the estimated interest portion of rents.
(B) Excluding the following significant unusual charges, the ratio of earnings
to fixed charges was 11.73, 9.49, 8.24, 6.08 and 5.08 in 2002, 2001, 2000,
1998 and 1997, respectively.
2002: $51 million charge for in-process research and development
(IPR&D).
2001: $280 million charge for IPR&D and acquisition-related costs, $189
million charge relating to discontinuing the A, AF and AX series
dialyzers.
2000: $286 million charge for IPR&D and acquisition-related costs.
1998: $116 million IPR&D charge, $178 million net litigation charge,
$122 million exit and reorganization costs charge.
1997: $220 million charge for IPR&D.