EX-12 4 y52322ex12.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)
Six Months Ended Years Ended December 31 June 30 ---------------------------------------------------------- 2001 2000 1999 1998 1997 1996 --------- --------- --------- --------- --------- ---------- Income Before Taxes $ 4,961.0 $ 9,824.1 $ 8,619.5 $ 8,133.1 $ 6,462.3 $ 5,540.8 Add: One-third of rents 37.6 67.0 66.7 56.0 47.0 41.0 Interest expense, net 184.9 361.9 236.4 150.6 98.2 103.2 Preferred stock dividends 106.9 205.2 120.7 62.1 49.6 70.0 --------- --------- --------- --------- --------- --------- Earnings $ 5,290.4 $10,458.2 $ 9,043.3 $ 8,401.8 $ 6,657.1 $ 5,755.0 ========= ========= ========= ========= ========= ========= One-third of rents $ 37.6 $ 67.0 $ 66.7 $ 56.0 $ 47.0 $ 41.0 Interest expense 233.4 484.4 316.9 205.6 129.5 138.6 Preferred stock dividends 106.9 205.2 120.7 62.1 49.6 70.0 --------- --------- --------- --------- --------- --------- Fixed Charges $ 377.9 $ 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.