EX-12 5 dex12.htm COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES 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)

 

 

 

 

    

Years Ended December 31

  
    

2002

     

2001

     

2000

     

1999

     

1998

     

1997

  

Income Before Taxes

   

$

10,213.6

 

   

$

10,402.6

 

   

$

9,824.1

 

   

$

8,619.5

 

   

$

8,133.1

 

   

$

6,462.3

 

Add (Subtract):

                                                      

One-third of rents

   

 

84.3

 

   

 

77.7

 

   

 

67.0

 

   

 

66.7

 

   

 

56.4

 

   

 

46.6

 

Interest expense, gross

   

 

390.8

 

   

 

464.7

 

   

 

484.4

 

   

 

316.9

 

   

 

205.6

 

   

 

129.5

 

Interest capitalized, net of amortization

   

 

(36.9

)

   

 

(66.1

)

   

 

(99.0

)

   

 

(61.4

)

   

 

(36.9

)

   

 

(16.5

)

Equity (income) loss from affiliates, net of distributions

   

 

(156.1

)

   

 

(113.8

)

   

 

(288.3

)

   

 

(352.7

)

   

 

36.6

 

   

 

153.0

 

Preferred stock dividends, net of tax

   

 

164.3

 

   

 

199.6

 

   

 

205.2

 

   

 

120.7

 

   

 

62.1

 

   

 

49.6

 

    
  
  
  
  
  

Earnings

   

$

10,660.0

 

   

$

10,964.7

 

   

$

10,193.4

 

   

$

8,709.7

 

   

$

8,456.9

 

   

$

6,824.5

 

    
  
  
  
  
  

One-third of rents

   

$

84.3

 

   

$

77.7

 

   

$

67.0

 

   

$

66.7

 

   

$

56.4

 

   

$

46.6

 

Interest expense, gross

   

 

390.8

 

   

 

464.7

 

   

 

484.4

 

   

 

316.9

 

   

 

205.6

 

   

 

129.5

 

Preferred stock dividends

   

 

234.7

 

   

 

285.1

 

   

 

293.1

 

   

 

172.4

 

   

 

88.7

 

   

 

70.9

 

    
  
  
  
  
  

Fixed Charges

   

$

709.8

 

   

$

827.5

 

   

$

844.5

 

   

$

556.0

 

   

$

350.7

 

   

$

247.0

 

    
  
  
  
  
  

Ratio of Earnings to Fixed Charges

   

 

15

 

   

 

13

 

   

 

12

 

   

 

16

 

   

 

24

 

   

 

28

 

    
  
  
  
  
  

 

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, equity income (loss) from affiliates, net of distributions, 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.