Philip Morris International (PM) 10-Q 2018 Q2 Quarterly report

Exhibit 12

PHILIP MORRIS INTERNATIONAL INC. AND SUBSIDIARIES

Computation of Ratios of Earnings to Fixed Charges

(in millions of dollars)

	Six Months Ended		Three Months Ended
	June 30, 2018		June 30, 2018
Earnings before income taxes	$	5,112	$	2,919
Add (deduct):
Dividends from less than 50% owned affiliates	23		13
Fixed charges	525		233
Interest capitalized, net of amortization	—		—
Earnings available for fixed charges	$	5,660	$	3,165
Fixed charges:
Interest incurred (1)	$	473	$	207
Portion of rent expense deemed to represent interest factor	52		26
Fixed charges	$	525	$	233
Ratio of earnings to fixed charges	10.8		13.6

⁽¹⁾ Interest incurred includes an interest benefit of $29 million and $14 million for the six months and three months ended June 30, 2018, respectively, not related to third party debt.

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Exhibit 12

PHILIP MORRIS INTERNATIONAL INC. AND SUBSIDIARIES

Computation of Ratios of Earnings to Fixed Charges

(in millions of dollars)

	For the Years Ended December 31,
	2017		2016		2015			2014		2013
Earnings before income taxes	$	10,589	$	9,924	$	9,615		$	10,650	$	12,542
Add (deduct):
Dividends from less than 50% owned affiliates	120		117		127			107		1
Fixed charges	1,203		1,166		1,232			1,284		1,216
Interest capitalized, net of amortization	1		—		(3		)	1		4
Earnings available for fixed charges	$	11,913	$	11,207	$	10,971		$	12,042	$	13,763
Fixed charges:
Interest incurred	$	1,098	$	1,071	$	1,137		$	1,172	$	1,105
Portion of rent expense deemed to represent interest factor	105		95		95			112		111
Fixed charges	$	1,203	$	1,166	$	1,232		$	1,284	$	1,216
Ratio of earnings to fixed charges	9.9		9.6		8.9			9.4		11.3

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