Exhibit 12
ZOETIS INC. AND SUBSIDIARY COMPANIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES(a)
| Three Months | ||||||||||||||||||||
| Ended | ||||||||||||||||||||
| March 31, | Year Ended December 31, | |||||||||||||||||||
| (IN MILLIONS, EXCEPT RATIOS) | 2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||
| Determination of earnings: | ||||||||||||||||||||
| Income/(loss) before provision for taxes on income | ||||||||||||||||||||
| and noncontrolling interests | $ | 192 | $ | 710 | $ | 394 | $ | 178 | $ | (148 | ) | |||||||||
| Less: Net income/(loss) attributable to noncontrolling interests | — | — | 3 | 1 | (1 | ) | ||||||||||||||
| Income/(loss) attributable to Zoetis Inc. | 192 | 710 | 391 | 177 | (147 | ) | ||||||||||||||
| Add: fixed charges | 25 | 37 | 43 | 43 | 32 | |||||||||||||||
| Total earnings/(loss) as defined | $ | 217 | $ | 747 | $ | 434 | $ | 220 | $ | (115 | ) | |||||||||
| Fixed charges: | ||||||||||||||||||||
Interest expense(b) | $ | 22 | $ | 31 | $ | 36 | $ | 37 | $ | 26 | ||||||||||
Rents(c) | 3 | 6 | 7 | 6 | 6 | |||||||||||||||
| Fixed charges | 25 | 37 | 43 | 43 | 32 | |||||||||||||||
| Capitalized interest | — | — | — | — | — | |||||||||||||||
| Total fixed charges | $ | 25 | $ | 37 | $ | 43 | $ | 43 | $ | 32 | ||||||||||
Ratio of earning to fixed charges(d) | 8.7 | 20.2 | 10.1 | 5.1 | ||||||||||||||||
(a) | Regulation S-K, Item 503(d) requires that the ratio be presented for each of the last five fiscal years and the latest interim period. However, certain information for 2008 is not available. Over the last five years, there have been significant changes in Pfizer’s corporate structure and a number of restructurings and personnel changes which have impacted our business. As such, it is not practicable for us to determine net income/(loss) for the year ended December 31, 2008, therefore we are not able to present the ratio for 2008. |
(b) | Interest expense includes amortization of debt discount and fees. Interest expense does not include interest related to uncertain tax positions. |
(c) | Rents included in the computation consist of one-third of rental expense, which we believe to be a conservative estimate of an interest factor in our leases, which are not material. |
(d) | Earnings were insufficient to cover fixed charges by $100 million for 2009. |