EX-12 2 y48941ex12.txt COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES 1 Exhibit 12 MERCK & CO., INC. AND SUBSIDIARIES Computation Of Ratios Of Earnings To Fixed Charges (In millions except ratio data)
Three Months Ended Years Ended December 31 March 31 ---------------------------------------------------------------------- 2001 2000 1999 1998 1997 1996 ---- ---- ---- ---- ---- ---- Income Before Taxes $ 2,367.5 $ 9,824.1 $ 8,619.5 $ 8,133.1 $ 6,462.3 $ 5,540.8 Add: One-third of rents 19.1 67.0 66.7 56.0 47.0 41.0 Interest expense, net 86.1 361.9 236.4 150.6 98.2 103.2 Preferred stock dividends 56.8 205.2 120.7 62.1 49.6 70.0 --------- --------- --------- --------- --------- --------- Earnings $ 2,529.5 $10,458.2 $ 9,043.3 $ 8,401.8 $ 6,657.1 $ 5,755.0 ========= ========= ========= ========= ========= ========= One-third of rents $ 19.1 $ 67.0 $ 66.7 $ 56.0 $ 47.0 $ 41.0 Interest expense 110.7 484.4 316.9 205.6 129.5 138.6 Preferred stock dividends 56.8 205.2 120.7 62.1 49.6 70.0 --------- --------- --------- --------- --------- --------- Fixed Charges $ 186.6 $ 756.6 $ 504.3 $ 323.7 $ 226.1 $ 249.6 ========= ========= ========= ========= ========= ========= Ratio of Earnings to Fixed Charges 14 14 18 26 29 23 ========= ========= ========= ========= ========= =========
For purposes of computing these ratios, "earnings" consist of income before taxes, one-third of rents (deemed by the Company to be representative of the interest factor inherent in rents), interest expense, net of amounts capitalized, and dividends on preferred stock of subsidiary companies. "Fixed charges" consist of one-third of rents, interest expense as reported in the Company's consolidated financial statements and dividends on preferred stock of subsidiary companies.