<PAGE>
Baxter International Inc. and Subsidiaries
Exhibit 12 - Computation of Ratio of Earnings to Fixed Charges
(unaudited - in millions, except ratios)
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
Years ended December 31, 1999 1998 1997 1996 1995
(B) (B) (B)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Income from continuing operations
before income taxes and cumulative
effect of accounting change $1,052 $ 493 $ 570 $ 693 $ 455
------------------------------------------------------------------------------------------------------------------------------------
Fixed charges
Interest costs 123 152 166 98 82
Estimated interest in rentals (A) 30 26 26 24 26
------------------------------------------------------------------------------------------------------------------------------------
Fixed charges as defined 153 178 192 122 108
------------------------------------------------------------------------------------------------------------------------------------
Adjustments to income
Interest costs capitalized (10) (4) (6) (2) (2)
Losses of less than majority owned
affiliates, net of dividends (2) -- -- 8 10
------------------------------------------------------------------------------------------------------------------------------------
Income as adjusted $1,193 $ 667 $ 756 $ 821 $ 571
====================================================================================================================================
Ratio of earnings to fixed charges 7.80 3.75 3.94 6.73 5.29
====================================================================================================================================
------------------------------------------------------------------------------------------------------------------------------------
Six months ended June 30, 2000
(B)
------------------------------------------------------------------------------------------------------------------------------------
Income from continuing operations before
income taxes and cumulative effect
of accounting change $ 270
------------------------------------------------------------------------------------------------------------------------------------
Fixed charges
Interest costs 57
Estimated interest in rentals (A) 7
------------------------------------------------------------------------------------------------------------------------------------
Fixed charges as defined 64
------------------------------------------------------------------------------------------------------------------------------------
Adjustments to income
Interest costs capitalized (7)
Losses of less than majority-owned
affiliates, net of dividends (1)
------------------------------------------------------------------------------------------------------------------------------------
Income as adjusted $ 326
====================================================================================================================================
Ratio of earnings to fixed charges 5.09
====================================================================================================================================
</TABLE>
(A) Represents the estimated interest portion of rents.
(B) Excluding the following significant unusual charges, the ratio of earnings
to fixed charges was 9.56, 6.08, 5.08, and 7.13 in 2000, 1998, 1997 and
1995, respectively.
2000: $286 million in-process research and development and acquisition-
related costs charge.
1998: $116 million in-process research and development charge, $178
million net litigation charge, $122 million exit and reorganization
costs charge.
1997: $220 million in-process research and development charge.
1995: $96 million net litigation charge and $103 million exit and other
reorganization costs charge.
