EX-12 5 dex12.txt COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES EXHIBIT 12 Baxter International Inc. and Subsidiaries Exhibit 12 - Computation of Ratio of Earnings to Fixed Charges (unaudited - in millions, except ratios) ------------------------------------------------------------------------------------------------------------ Years ended December 31, 2001 2000 1999 1998 1997 (B) (B) (B) (B) ------------------------------------------------------------------------------------------------------------ Income from continuing operations before income taxes and cumulative effect of accounting change $964 $946 $1,052 $493 $570 ------------------------------------------------------------------------------------------------------------ Fixed charges Interest costs 130 135 123 152 166 Estimated interest in rentals (A) 36 33 30 26 26 ------------------------------------------------------------------------------------------------------------ Fixed charges as defined 166 168 153 178 192 ------------------------------------------------------------------------------------------------------------ Adjustments to income Interest costs capitalized (22) (14) (10) (4) (6) Losses of less than majority owned affiliates, net of dividends (1) (2) (2) -- -- ------------------------------------------------------------------------------------------------------------ Income as adjusted $1,107 $1,098 $1,193 $667 $756 ============================================================================================================ Ratio of earnings to fixed charges 6.67 6.54 7.80 3.75 3.94 ============================================================================================================ ------------------------------------------------------------------------------------------------------------ Three months ended March 31, 2002 ------------------------------------------------------------------------------------------------------------ Income from operations before income taxes and cumulative effect of accounting change $342 ------------------------------------------------------------------------------------------------------------ Fixed charges Interest costs 22 Estimated interest in rentals (A) 9 ------------------------------------------------------------------------------------------------------------ Fixed charges as defined 31 ------------------------------------------------------------------------------------------------------------ Adjustments to income Interest costs capitalized (4) Losses of less than majority-owned affiliates, net of dividends -- ------------------------------------------------------------------------------------------------------------ Income as adjusted $369 ============================================================================================================ Ratio of earnings to fixed charges 11.90 ============================================================================================================
(A) Represents the estimated interest portion of rents. (B) Excluding the following significant unusual charges, the ratio of earnings to fixed charges was 9.49, 8.24, 6.08 and 5.08 in 2001, 2000, 1998 and 1997, respectively. 2001: $280 million charge for in-process research and development and acquisition-related costs, $189 million charge relating to discontinuing the A, AF and AX series dialyzers. 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.