EXHIBIT 12
Abbott Laboratories and Subsidiaries
CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Unaudited)
(dollars in millions except ratios)
Year Ended December 31
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1998 1997 1996 1995 1994
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Net Earnings . . . . . . . . . . . . . . . . . . . . . $2,333 $2,094 $1,882 $1,689 $1,517
Add (deduct):
Income taxes . . . . . . . . . . . . . . . . . . . . . 907 855 788 706 650
Capitalized interest cost, net of amortization . . . . 1 (1) (4) (7) (7)
Equity in earnings of 20% -49% owned companies,
less dividends received. . . . . . . . . . . . . . . . 0 0 0 2 0
Minority interest. . . . . . . . . . . . . . . . . . . 7 11 16 18 12
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Net earnings as adjusted . . . . . . . . . . . . . . . $3,248 $2,959 $2,682 $2,408 $2,172
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Fixed Charges:
Interest on long-term and short-term debt. . . . . . . $160 $135 $95 $70 $50
Capitalized interest cost. . . . . . . . . . . . . . . 14 14 16 19 18
Rental expense representative of an interest factor. . 40 29 26 26 26
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Total Fixed Charges. . . . . . . . . . . . . . . . . . 214 178 137 115 94
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Total adjusted earnings available for
payment of fixed charges . . . . . . . . . . . . . . . $3,462 $3,137 $2,819 $2,523 $2,266
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Ratio of earnings to fixed charges . . . . . . . . . . 16.2 17.6 20.6 21.9 24.1
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NOTE: For the purpose of calculating this ratio, (i) earnings have been
calculated by adjusting net earnings for taxes on earnings; interest
expense; capitalized interest cost, net of amortization; minority interest;
and the portion of rentals representative of the interest factor, (ii)
the company considers one-third of rental expense to be the amount
representing return on capital, and (iii) fixed charges comprise total
interest expense, including capitalized interest and such portion of
rentals.