EX-12 3 y67941exv12.txt COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Exhibit 12 SCHERING-PLOUGH CORPORATION AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Dollars in millions)
Nine Months Ended September 30, Years Ended December 31 2004 2003 2002 2001 2000 1999 ---- ---- ---- ---- ---- ---- (Loss)/Income Before Income Taxes $ (140) $(46) $ 2,563 $2,523 $3,188 $2,795 Less: Equity Income 249 54 - - - - -------- ---- ------- ------ ------ ------ (Loss)/Income Before Income Taxes and Equity Income (389) (100) 2,563 2,523 3,188 2,795 Add Fixed Charges: Preference Dividends 15 - - - - - Interest Expense 130 81 28 40 44 29 One-third of Rental Expense 24 30 27 24 24 22 Capitalized Interest 14 11 24 25 20 12 -------- ---- ------- ------ ------ ------ Total Fixed Charges 183 122 79 89 88 63 Less: Capitalized Interest 14 11 24 25 20 12 Less: Preference Dividends 15 - - - - - Add: Amortization of Capitalized Interest 8 9 8 7 7 7 Add: Distributed Income of Equity Investees 146 32 - - - - -------- ---- ------- ------ ------ ------ (Loss)/Earnings Before Income Taxes and Fixed Charges (other than Capitalized Interest) $ (81) $ 52 $ 2,626 $2,594 $3,263 $2,853 ======== ==== ======= ====== ====== ====== Ratio of Earnings to Fixed Charges (0.4)* 0.4 ** 33.2 29.1 37.1 45.3 ======== ==== ======= ====== ====== ======
* For the nine months ended September 30, 2004, earnings were insufficient to cover fixed charges by $264. ** 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 and preference dividends), amortization of capitalized interest and distributed income of equity investee. "Fixed charges" consist of interest expense, capitalized interest, preference dividends and one-third of rentals which Schering-Plough believes to be a reasonable estimate of an interest factor on leases.