EXHIBIT 12. STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS FROM CONTINUING OPERATIONS TO FIXED CHARGES (Unaudited) Eli Lilly and Company and Subsidiaries (Dollars in Millions) Six Months Ended June 30, Years Ended December 31, ------------- ---------------------------------------------- 1997 1996 1995 1994 1993 1992 -------- -------- -------- -------- -------- --------- Consolidated Pretax Income (Loss) from Continuing Operations before Accounting Changes $(712.1) $2031.3 $1765.6 $1698.6 $662.8 $1193.5 Interest from Continuing Operations 136.5 324.9 324.6 129.2 96.1 108.4 Less Interest Capitalized during the Period from Continuing Operations (13.4) (36.1) (38.3) (25.4) (25.5) (35.2) ------- ------- ------- ------- ------ ------- Earnings (Loss) $(589.0) $2320.1 $2051.9 $1802.4 $733.4 $1266.7 ======= ======= ======= ======= ====== ======= Fixed Charges/1/ $ 138.2 $ 329.6 $ 324.6 $ 129.2 $ 96.1 $ 108.4 ======= ======= ======= ======= ====== ======= Ratio of Earnings to Fixed Charges N/M/2/ 7.0 6.3 14.0 7.6 11.7 ======= ======= ======= ======= ====== ======= /1/Fixed charges include interest from continuing operations for all years presented and beginning in 1996, preferred stock dividends. /2/Included in the 1997 earnings is a noncash charge of approximately $2.4 billion due to an asset impairment. (See notes to consolidated condensed financial statements.) Due to the resulting loss, the Company was unable to fully cover the indicated fixed charges. Earnings did not cover fixed charges by $727.2 million in 1997. If the asset impairment charge had not occurred, the ratio of earnings to fixed charges would have been 13.4. (PAGE 19)