EX-12 8 a06-14795_1ex12.htm EX-12

Exhibit 12

Abbott Laboratories

Computation of Ratio of Earnings to Fixed Charges

(Unaudited)

(dollars in millions except ratio)

 

 

Six Months Ended

 

 

 

June 30, 2006

 

Net Earnings

 

$

1,477

 

Add (deduct):

 

 

 

Taxes on earnings

 

315

 

Capitalized interest cost, net of amortization

 

(8

)

Minority interest

 

4

 

 

 

 

 

Net Earnings as adjusted

 

                   1,788

 

 

 

 

 

Fixed Charges:

 

 

 

Interest on long-term and short-term debt

 

184

 

Capitalized interest cost

 

15

 

Rental expense representative of an interest factor

 

32

 

 

 

 

 

Total Fixed Charges

 

231

 

 

 

 

 

Total adjusted earnings available for payment of fixed charges

 

$

2,019

 

 

 

 

 

Ratio of earnings to fixed charges

 

8.7

 

 

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.