EX-12 5 a06-9013_1ex12.htm EX-12

Exhibit 12

 

Abbott Laboratories

 

Computation of Ratio of Earnings to Fixed Charges

 

(Unaudited)

 

(dollars in millions except ratio)

 

 

 

Three Months Ended

 

 

 

March 31, 2006

 

Net Earnings

 

$

865

 

Add (deduct):

 

 

 

Taxes on earnings

 

270

 

Capitalized interest cost, net of amortization

 

(2

)

Minority interest

 

2

 

 

 

 

 

Net Earnings as adjusted

 

1,135

 

 

 

 

 

Fixed Charges:

 

 

 

Interest on long-term and short-term debt

 

73

 

Capitalized interest cost

 

6

 

Rental expense representative of an interest factor

 

16

 

 

 

 

 

Total Fixed Charges

 

95

 

 

 

 

 

Total adjusted earnings available for payment of fixed charges

 

$

1,230

 

 

 

 

 

Ratio of earnings to fixed charges

 

12.9

 

 

NOTE:    For the purpose of calculating this ratio, (i) earnings have been calculated by adjusting 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) 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.