EX-12 3 y60514ex12.txt COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES 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 --------------------------------------------------------------------- 2002 2001 2000 1999 1998 1997 --------- --------- --------- --------- --------- --------- Income Before Taxes $ 2,321.5 $10,402.6 $ 9,824.1 $ 8,619.5 $ 8,133.1 $ 6,462.3 Add: One-third of rents 20.4 77.7 67.0 66.7 56.0 47.0 Interest expense, net 78.1 369.7 361.9 236.4 150.6 98.2 Preferred stock dividends 41.7 199.6 205.2 120.7 62.1 49.6 --------- --------- --------- --------- --------- --------- Earnings $ 2,461.7 $11,049.6 $10,458.2 $ 9,043.3 $ 8,401.8 $ 6,657.1 ========= ========= ========= ========= ========= ========= One-third of rents $ 20.4 $ 77.7 $ 67.0 $ 66.7 $ 56.0 $ 47.0 Interest expense 95.3 464.7 484.4 316.9 205.6 129.5 Preferred stock dividends 41.7 199.6 205.2 120.7 62.1 49.6 --------- --------- --------- --------- --------- --------- Fixed Charges $ 157.4 $ 742.0 $ 756.6 $ 504.3 $ 323.7 $ 226.1 ========= ========= ========= ========= ========= ========= Ratio of Earnings to Fixed Charges 16 15 14 18 26 29 ========= ========= ========= ========= ========= =========
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.