Exhibit 12
Baxter International Inc. and Subsidiaries
Exhibit 12--Computation of Ratio of Earnings to Fixed Charges
(unaudited--in millions, except ratios)
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2002 2001 2000 1999 1998
Years ended December 31, (B) (B) (B) (B)
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Income from continuing operations
before income taxes and cumulative
effect of accounting change $1,397 $979 $ 970 $1,085 $521
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Fixed charges
Interest costs 100 129 134 122 151
Estimated interest in rentals (A) 46 36 32 29 26
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Fixed charges as defined 146 165 166 151 177
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Adjustments to income
Interest costs capitalized (30) (22) (14) (10) (4)
Losses of less than majority owned affiliates, net of dividends (1) (1) (2) (2) --
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Income as adjusted $1,512 $1,121 $1,120 $1,224 $694
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Ratio of earnings to fixed charges 10.36 6.79 6.75 8.11 3.92
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(A) Represents the estimated interest portion of rents.
(B) Excluding the following special charges, the ratio of earnings to fixed
charges was 11.65, 9.64, 8.47 and 6.27 in 2002, 2001, 2000 and 1998,
respectively.
2002: $189 million charge for in-process research and development and other
special charges.
2001: $280 million charge for in-process research and development and other
special charges, $189 million charge relating to discontinuing the A,
AF and AX series dialyzers.
2000: $286 million charge for in-process research and development and other
special charges.
1998: $116 million in-process research and development charge, $178 million
net litigation charge, $122 million exit and reorganization costs
charge.