EX-12 4 dex12.txt COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Baxter International Inc. and Subsidiaries
Exhibit 12 - Computation of Ratio of Earnings to Fixed Charges (unaudited - in millions, except ratios) ----------------------------------------------------------------------------------------------------------------------- Years ended December 31, 2000 1999 1998 1997 1996 (B) (B) (B) ----------------------------------------------------------------------------------------------------------------------- Income from continuing operations before income taxes and cumulative effect of accounting change $ 946 $1,052 $ 493 $ 570 $ 693 ----------------------------------------------------------------------------------------------------------------------- Fixed charges Interest costs 135 123 152 166 98 Estimated interest in rentals (A) 33 30 26 26 24 ----------------------------------------------------------------------------------------------------------------------- Fixed charges as defined 168 153 178 192 122 ----------------------------------------------------------------------------------------------------------------------- Adjustments to income Interest costs capitalized (14) (10) (4) (6) (2) Losses of less than majority owned affiliates, net of dividends (2) (2) -- -- 8 ----------------------------------------------------------------------------------------------------------------------- Income as adjusted $1,098 $1,193 $ 667 $ 756 $ 821 ======================================================================================================================= Ratio of earnings to fixed charges 6.54 7.80 3.75 3.94 6.73 =======================================================================================================================
----------------------------------------------------------------------------------------------------------------------- Six months ended June 30, 2001 ----------------------------------------------------------------------------------------------------------------------- Income from continuing operations before income taxes and cumulative effect of accounting change $ 629 ----------------------------------------------------------------------------------------------------------------------- Fixed charges Interest costs 64 Estimated interest in rentals (A) 17 ----------------------------------------------------------------------------------------------------------------------- Fixed charges as defined 81 ----------------------------------------------------------------------------------------------------------------------- Adjustments to income Interest costs capitalized (8) Losses of less than majority-owned affiliates, net of dividends -- ----------------------------------------------------------------------------------------------------------------------- Income as adjusted $ 702 ======================================================================================================================= Ratio of earnings to fixed charges 8.67 =======================================================================================================================
(A) Represents the estimated interest portion of rents. (B) Excluding the following significant unusual charges, the ratio of earnings to fixed charges was 8.24, 6.08, and 5.08 in 2000, 1998, and 1997, respectively. 2000: $286 million charge for in-process research and development and acquisition-related costs. 1998: $116 million in-process research and development charge, $178 million net litigation charge, $122 million exit and reorganization costs charge. 1997: $220 million in-process research and development charge.