Exhibit 12
MERCK & CO., INC. AND SUBSIDIARIES
Computation of Ratios of Earnings to Fixed Charges
($ in millions except ratio data)
 

 
 
 
 
 
 
 
 
 
 
 
Years Ended December 31,
 
2013
 
2012
 
2011
 
2010
 
2009
Income Before Taxes
$
5,545

 
$
8,739

 
$
7,334

 
$
1,653

 
$
15,290

 
 
 
 
 
 
 
 
 
 
Add (Subtract):
 
 
 
 
 
 
 
 
 
One-third of rents
122

 
133

 
138

 
144

 
79

Interest expense, gross
801

 
714

 
749

 
715

 
460

Interest capitalized, net of amortization
(2)

 
(49)

 
(2)

 
3

 
27

Equity (income) loss from affiliates, net of distributions
(168)

 
(350)

 
(394)

 
(263)

 
(511)

Earnings as defined
$
6,298

 
$
9,187

 
$
7,825

 
$
2,252

 
$
15,345

 
 
 
 
 
 
 
 
 
 
One-third of rents
$
122

 
$
133

 
$
138

 
$
144

 
$
79

Interest expense, gross
801

 
714

 
749

 
715

 
460

Preferred stock dividends
147

 
163

 
138

 
202

 
143

Fixed Charges
$
1,070

 
$
1,010

 
$
1,025

 
$
1,061

 
$
682

 
 
 
 
 
 
 
 
 
 
Ratio of Earnings to Fixed Charges
6

 
9

 
8

 
2

 
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, interest capitalized, net of amortization and equity (income) loss from affiliates, net of distributions. “Fixed charges” consist of one-third of rents, interest expense as reported in the consolidated financial statements and dividends on preferred stock. Interest expense does not include interest related to uncertain tax positions.