EX-12 4 y58008ex12.txt STATEMENT OF COMPUTATION OF RATIO OF EARNINGS EXHIBIT 12 JOHNSON & JOHNSON AND SUBSIDIARIES STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES(1) (DOLLARS IN MILLIONS)
FISCAL YEAR ENDED -------------------------------------------------------------------- DECEMBER 30, DECEMBER 31, JANUARY 2, JANUARY 3, DECEMBER 28, 2001 2000 2000 1999(2) 1997 ------------ ------------ ---------- ---------- ------------ Determination of Earnings: Earnings Before Provision for Taxes on Income............... $7,898 6,868 5,877 4,333 4,342 Fixed Charges.................... 245 292 337 269 260 ------ ----- ----- ----- ----- Total Earnings as Defined................ $8,143 7,160 6,214 4,602 4,602 ====== ===== ===== ===== ===== Fixed Charges and Other: Rents............................ 92 88 82 83 81 Interests........................ 153 204 255 186 179 ------ ----- ----- ----- ----- Fixed Charges............ 245 292 337 269 260 Capitalized Interest............. 95 97 84 73 41 ------ ----- ----- ----- ----- Total Fixed Charges...... $ 340 389 421 342 301 ====== ===== ===== ===== ===== Ratio of Earnings to Fixed Charges.......................... 23.95 18.41 14.76 13.46 15.29 ====== ===== ===== ===== =====
--------------- (1) The ratio of earnings to fixed charges represents the historical ratio of Johnson & Johnson and is calculated on a total enterprise basis. The ratio is computed by dividing the sum of earnings before provision for taxes and fixed charges (excluding capitalized interest) by fixed charges. Fixed charges represent interest (including capitalized interest) and amortization of debt discount and expense and the interest factor of all rentals, consisting of an appropriate interest factor on operating leases. (2) Earnings for the year ended January 3, 1999 include charges related to restructuring of $613 million and in-process research and development charges of $298 million. Excluding the effect of these charges, the ratio of earnings to fixed charges would have been 16.12.