EX-12 2 a05-18480_1ex12.htm STATEMENTS REGARDING COMPUTATION OF RATIOS

Exhibit 12

 

Abbott Laboratories

 

Computation of Ratio of Earnings to Fixed Charges

 

(Unaudited)

 

(dollars in millions except ratio)

 

 

 

Nine Months
Ended

 

 

 

September 30,
2005

 

Earnings from Continuing Operations

 

$

2,396

 

Add (deduct):

 

 

 

Taxes on earnings from continuing operations

 

824

 

Capitalized interest cost, net of amortization

 

(8

)

Minority interest

 

7

 

 

 

 

 

Earnings from Continuing Operations as adjusted

 

$

3,219

 

 

 

 

 

Fixed Charges:

 

 

 

Interest on long-term and short-term debt

 

180

 

Capitalized interest cost

 

18

 

Rental expense representative of an interest factor

 

46

 

 

 

 

 

Total Fixed Charges

 

244

 

 

 

 

 

Total adjusted earnings available for payment of fixed charges

 

$

3,463

 

 

 

 

 

Ratio of earnings to fixed charges

 

14.2

 

 

NOTE:            For the purpose of calculating this ratio, (i) earnings have been calculated by adjusting earnings from continuing operations for taxes on earnings from continuing operations; interest expense; capitalized interest cost, net of amortization; minority interest; and the portion of rentals representative of the interest factor, (ii) Abbott 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.