EX-12 3 a2054689zex-12.txt EXHIBIT 12 EXHIBIT 12 GENZYME CORPORATION AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (IN THOUSANDS)
For the Three Months YEAR ENDED DECEMBER 31, Ended ----------------------------------------------------------------- March 31, 1996 1997 1998 1999 2000 2001 ---- ---- ---- ---- ---- ---- Pre-tax income(loss) from continuing operations ........................................ $ (69,622) $ 25,729 $ 102,437 $ 117,928 $(7,462) $ (1,580) Add: Fixed charges: Portion of rents representative of the interest factor ................................ 4,260 5,421 6,142 7,400 7,033 1,758 Amortization of debt conversion feature value .... -- 2,028 3,025 -- -- -- Amortization of debt discount and commitment fees ........................................... -- 274 837 1,333 1,148 462 Interest on indebtedness ......................... 6,990 10,365 18,731 20,438 14,562 10,908 Amortization of capitalized interest ............. 2,306 2,793 2,887 3,021 3,287 960 Equity in net loss of unconsolidated affiliates(1) .. 3,472 2,900 7,329 7,128 2,099 916 Subtract: Minority interest in pre-tax income of consolidated subsidiaries that have not incurred fixed charges -- -- (4,285) (3,674) (4,625) (1,274) --------- --------- --------- --------- ------- --------- As adjusted income (loss) ........................... $ (52,594) $ 49,510 $ 137,103 $ 153,574 $16,042 $ 12,150 ========= ========= ========= ========= ======= ========= Fixed charges: Portion of rents representative of the interest factor .......................................... $ 4,260 $ 5,421 6,142 7,400 7,033 1,758 Amortization of debt conversion feature value ..... -- 2,028 3,025 -- -- -- Amortization of debt discount and commitment fees . -- 274 837 1,333 1,148 462 Interest on indebtedness .......................... 6,990 10,365 18,731 20,438 14,562 10,908 Capitalized interest .............................. 2,377 470 669 1,329 2,713 1,078 Capitalized amortization of debt discount ......... 57 -- -- -- -- -- --------- --------- --------- --------- ------- --------- Total fixed charges ................................. $ 13,684 $ 18,558 $ 29,404 $ 30,500 $25,456 $ 14,206 ========= ========= ========= ========= ======= ========= Ratio of earnings to fixed charges (2) .............. -- 2.7x 4.7x 5.0x -- -- ========= ========= ========= ========= ======= =========
(1) Represents our equity in the net losses of Genzyme Transgenics Corporation, an unconsolidated affiliate. (2) The ratio of earnings to fixed charges is not presented for the fiscal years ended December 31, 1996 and 2000 or for the three months ended March 31, 2001 because in each such period fixed charges exceeded earnings (as set forth above). In 1996, fixed charges exceeded earnings by $66.3 million due primarily to charges for in-process research and development of $130.6 million resulting from the acquisitions of Deknatel Snowden Pencer, Inc. and Neozyme II Corporation. In 2000, fixed charges exceeded earnings by $9.4 million due primarily to charges for in-process research and development of $200.2 million resulting from the acquisitions of GelTex and Biomatrix. For the three months ended March 31, 2001, fixed charges exceeded earnings by $2.1 million due primarily to increased amortization of intangibles resulting from the acquisitions of GelTex and Biomatrix in December 2000.