EX-12 10 a07-1583_1ex12.htm EX-12

Exhibit 12

Abbott Laboratories

Computation of Ratio of Earnings to Fixed Charges

(Unaudited)

(dollars in millions)

 

 

2006

 

2005

 

2004

 

2003

 

2002

 

EARNINGS FROM CONTINUING OPERATIONS
ADD (DEDUCT)

 

$

1,717

 

$

3,372

 

$

3,176

 

$

2,505

 

$

2,547

 

Taxes on earnings from continuing operations

 

559

 

1,248

 

950

 

882

 

774

 

Amortization of capitalized interest, net of capitalized interest

 

(28

)

(16

)

5

 

11

 

8

 

Minority interest

 

8

 

9

 

11

 

11

 

18

 

EARNINGS FROM CONTINUING OPERATIONS AS ADJUSTED

 

$

2,256

 

$

4,613

 

$

4,142

 

$

3,409

 

$

3,347

 

FIXED CHARGES Interest on long-term and short-term debt

 

416

 

241

 

200

 

188

 

239

 

Capitalized interest cost

 

43

 

29

 

9

 

5

 

8

 

Rental expense representative of an interest factor

 

66

 

64

 

59

 

59

 

56

 

TOTAL FIXED CHARGES

 

525

 

334

 

268

 

252

 

303

 

TOTAL ADJUSTED EARNINGS FROM CONTINUING OPERATIONS AVAILABLE FOR PAYMENT OF FIXED CHARGES

 

$

2,781

 

$

4,947

 

$

4,410

 

$

3,661

 

$

3,650

 

RATIO OF EARNINGS FROM CONTINUING OPERATIONS TO FIXED CHARGES

 

5.3

 

14.8

 

16.5

 

14.5

 

12.0

 

 

NOTE: For the purpose of calculating this ratio, (i) earnings from continuing operations have been calculated by adjusting earnings from continuing operations for taxes on earnings from continuing operations; interest expense; amortization of capitalized interest, net of capitalized interest; 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.