EX-12 3 y99638exv12.txt COMPUTATION OF RATIO OF EARNINGS Exhibit 12 SCHERING-PLOUGH CORPORATION AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Dollars in millions)
Years Ended December 31 Six Months Ended June 30, 2004 2003 2002 2001 2000 1999 -------- -------- -------- -------- -------- -------- (Loss)/Income Before Income Taxes $ (173) $ (46) $ 2,563 $ 2,523 $ 3,188 $ 2,795 Less: Equity Income 154 54 - - - - -------- -------- -------- -------- -------- -------- (Loss)/Income Before Income Taxes and Equity Income (327) (100) 2,563 2,523 3,188 2,795 Add Fixed Charges: Interest Expense 91 81 28 40 44 29 One-third of Rental Expense 16 30 27 24 24 22 Capitalized Interest 9 11 24 25 20 12 -------- -------- -------- -------- -------- -------- Total Fixed Charges 116 122 79 89 88 63 Less: Capitalized Interest 9 11 24 25 20 12 Add: Amortization of Capitalized Interest 5 9 8 7 7 7 Add: Distributed Income of Equity Investees 65 32 - - - - -------- -------- -------- -------- -------- -------- (Loss)/Earnings Before Income Taxes and Fixed Charges (other than Capitalized Interest) $ (150) $ 52 $ 2,626 $ 2,594 $ 3,263 $ 2,853 ======== ======== ======== ======== ======== ======== Ratio of Earnings to Fixed Charges (1.3)* 0.4** 33.2 29.1 37.1 45.3 ======== ======== ======== ======== ======== ========
* For the six months ended June 30, 2004, earnings were insufficient to cover fixed charges by $266. ** For the year ended December 31, 2003, earnings were insufficient to cover fixed charges by $70. "Earnings" consist of (loss)/income before income taxes and equity income, plus fixed charges (other than capitalized interest), amortization of capitalized interest and distributed income of equity investee. "Fixed charges" consist of interest expense, capitalized interest and one-third of rentals which Schering-Plough believes to be a reasonable estimate of an interest factor on leases.