EX-12 3 bax-ex12_12.htm EX-12

EXHIBIT 12

Baxter International Inc. and Subsidiaries

Computation of Ratio of Earnings to Fixed Charges

(unaudited — in millions, except ratios)

years ended December 31 |  | 2017 |  |  | 2016 |  |  | 2015 |  |  | 2014 |  |  | 2013 |
Income from continuing operations before income taxes |  | $ | 1,217 |  |  | $ | 4,954 |  |  | $ | 428 |  |  | $ | 490 |  |  | $ | 375 |
Fixed charges |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest costs(1) |  |  | 98 |  |  |  | 107 |  |  |  | 197 |  |  |  | 237 |  |  |  | 225 |
Estimated interest in rentals(2) |  |  | 51 |  |  |  | 58 |  |  |  | 70 |  |  |  | 83 |  |  |  | 71 |
Fixed charges as defined |  |  | 149 |  |  |  | 165 |  |  |  | 267 |  |  |  | 320 |  |  |  | 296 |
Adjustments to income from continuing operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest costs capitalized |  |  | (13 | ) |  |  | (18 | ) |  |  | (51 | ) |  |  | (70 | ) |  |  | (70 | )
Net (gains) losses of less than majority-owned affiliates, net of dividends |  |  | (6 | ) |  |  | 2 |  |  |  | (1 | ) |  |  | (19 | ) |  |  | (1 | )
Income from continuing operations as adjusted |  | $ | 1,347 |  |  | $ | 5,103 |  |  | $ | 643 |  |  | $ | 721 |  |  | $ | 600 |
Ratio of earnings from continuing operations to fixed charges |  |  | 9.04 |  |  |  | 30.93 |  |  |  | 2.41 |  |  |  | 2.25 |  |  |  | 2.03 |

(1) | Excludes interest on uncertain tax positions.

(2) | Represents the estimated interest portion of rents.