Exhibit 12.1
| Year ended | Year ended | Year ended | Year ended | Year ended | ||||||||||||||||||
| 31-Dec | 31-Dec | 31-Dec | 31-Dec | 31-Dec | ||||||||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||
Pre tax
income from continuing operations before adjustment for equity investees and cumulative effect of accounting change |
$910,595 | $492,163 | $256,195 | $64,093 | $(880,624 | ) | ||||||||||||||||
Less: Interest capitalized |
(10,100 | ) | (2,100 | ) | (8,400 | ) | (8,800 | ) | (6,800 | ) | ||||||||||||
Add back:
Minority Interest expense(4) |
6,608 | 6,770 | ||||||||||||||||||||
Total Earnings (as adjusted) |
$907,103 | $496,833 | $247,795 | $55,293 | $(887,424 | ) | ||||||||||||||||
Fixed Charges |
||||||||||||||||||||||
Interest Expense |
40,500 | 871 | 9,647 | 18,898 | 15,182 | |||||||||||||||||
Add: Interest capitalized |
10,100 | 2,100 | 8,400 | 8,800 | 6,800 | |||||||||||||||||
Interest
component of Rent Expense(3) |
10,923 | 8,646 | 10,626 | 11,682 | 4,257 | |||||||||||||||||
Total Fixed Charges |
$61,523 | $11,617 | $28,673 | $39,380 | $26,239 | |||||||||||||||||
Total earnings as adjusted plus fixed charges |
$968,626 | $508,450 | $276,468 | $94,673 | $(861,185 | ) | ||||||||||||||||
Ratio of earnings to fixed charges (1) |
15.74 | 43.77 | 9.64 | 2.40 | (2 | ) | ||||||||||||||||
| (1) | We have computed the ratios of earnings to fixed charges by dividing pre tax income from continuing operations, plus fixed charges, plus amortization of capitalized interest, less earnings of equity investees, less interest capitalized, by fixed charges. Fixed charges consist of interest costs, whether expensed or capitalized, the interest component of rental expense and any amortization of debt premiums, discounts and issuance costs. | |
| (2) | The ratio of earnings to fixed charges is not presented for the year ended December 31, 2003 because our earnings were a net loss of $887.4 million primarily due to the recording of an in-process research and development expense of $823.0 million in connection with the merger of Biogen Inc. and Idec Pharmaceuticals Inc. | |
| (3) | The percent of rent included in the calculation is a reasonable approximation of the interest factor. | |
| (4) | For the year ended December 31, 2007, this calculation excludes $65.0 million allocated to minority interest due to the consolidation of certain variable interest entities. The $65.0 million represents the fair value of technologies retained by the parent companies of these variable interest entities and offset an equal charge to in process research and development, and resulted in no net impact to our results of operations for the year ended December 31, 2007. |