Exhibit 12
ZOETIS INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES(a)
| Nine Months | |||||||||||||||||||||||
| Ended | |||||||||||||||||||||||
| October 2, | Year Ended December 31, | ||||||||||||||||||||||
| (IN MILLIONS, EXCEPT RATIOS) | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||
| Determination of earnings: | |||||||||||||||||||||||
| Income before provision for taxes on income | |||||||||||||||||||||||
| and noncontrolling interests | $ | 997 | $ | 545 | $ | 820 | $ | 690 | $ | 710 | $ | 394 | |||||||||||
| Less: Net income/(loss) attributable to noncontrolling interests | (2 | ) | — | 4 | (1 | ) | — | 3 | |||||||||||||||
| Income attributable to Zoetis Inc. | 999 | 545 | 816 | 691 | 710 | 391 | |||||||||||||||||
| Add: fixed charges | 133 | 137 | 131 | 127 | 37 | 43 | |||||||||||||||||
| Total earnings as defined | $ | 1,132 | $ | 682 | $ | 947 | $ | 818 | $ | 747 | $ | 434 | |||||||||||
| Fixed charges: | |||||||||||||||||||||||
Interest expense, net of capitalized interest(a) | $ | 125 | $ | 124 | $ | 117 | $ | 113 | $ | 31 | $ | 36 | |||||||||||
| Capitalized interest | 2 | 4 | 4 | 3 | — | — | |||||||||||||||||
Interest portion of rent expense(b) | 6 | 9 | 10 | 11 | 6 | 7 | |||||||||||||||||
| Fixed charges | $ | 133 | $ | 137 | $ | 131 | $ | 127 | $ | 37 | $ | 43 | |||||||||||
| �� | |||||||||||||||||||||||
| Ratio of earning to fixed charges | 8.5 | 5.0 | 7.2 | 6.4 | 20.2 | 10.1 | |||||||||||||||||
(a) | Interest expense includes amortization of debt discount and fees. Interest expense does not include interest related to uncertain tax positions. |
(b) | One-third of all rental expense is deemed to be interest, which we believe to be a conservative estimate of an interest factor in our leases. |