Exhibit 12
Pfizer Inc. and Subsidiary Companies
Computation of Ratio of Earnings to Fixed Charges
Three Months | ||||||||||||||||||||||||
Ended | Year Ended December 31, | |||||||||||||||||||||||
(MILLIONS OF DOLLARS, EXCEPT RATIO) | March 30, 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | ||||||||||||||||||
Determination of Earnings: | ||||||||||||||||||||||||
Income from continuing operations before provision for taxes on income, noncontrolling interests and cumulative effect of a change in accounting principles | $ | 2,847 | $ | 15,716 | $ | 11,242 | $ | 11,481 | $ | 8,846 | $ | 10,421 | ||||||||||||
Less: | ||||||||||||||||||||||||
Noncontrolling interests | 13 | 44 | 47 | 60 | 46 | 15 | ||||||||||||||||||
Income attributable to Pfizer Inc. | 2,834 | 15,672 | 11,195 | 11,421 | 8,800 | 10,406 | ||||||||||||||||||
Add (deduct): | ||||||||||||||||||||||||
Capitalized interest | (10 | ) | (32 | ) | (41 | ) | (50 | ) | (36 | ) | (34 | ) | ||||||||||||
Amortization of capitalized interest | 10 | 65 | 69 | 95 | 29 | 29 | ||||||||||||||||||
Equity (income)/loss from equity method investments | (36 | ) | (55 | ) | (99 | ) | (82 | ) | (78 | ) | 4 | |||||||||||||
Distributed income of equity method investments | — | 162 | 85 | 190 | 26 | — | ||||||||||||||||||
Fixed charges | 341 | 1,495 | 1,627 | 1,812 | 1,930 | 1,358 | ||||||||||||||||||
Total earnings as defined | $ | 3,139 | $ | 17,307 | $ | 12,836 | $ | 13,386 | $ | 10,671 | $ | 11,763 | ||||||||||||
Fixed charges: | ||||||||||||||||||||||||
Interest expense(a) | $ | 321 | $ | 1,414 | $ | 1,522 | $ | 1,681 | $ | 1,797 | $ | 1,232 | ||||||||||||
Preferred stock dividends(b) | 1 | 3 | 4 | 5 | 6 | 7 | ||||||||||||||||||
Rents(c) | 19 | 78 | 101 | 126 | 127 | 119 | ||||||||||||||||||
Fixed charges | 341 | 1,495 | 1,627 | 1,812 | 1,930 | 1,358 | ||||||||||||||||||
Capitalized interest | 10 | 32 | 41 | 50 | 36 | 34 | ||||||||||||||||||
Total fixed charges | $ | 351 | $ | 1,527 | $ | 1,668 | $ | 1,862 | $ | 1,966 | $ | 1,392 | ||||||||||||
Ratio of earnings to fixed charges | 8.9 | 11.3 | 7.7 | 7.2 | 5.4 | 8.5 |
(a) | Interest expense includes amortization of debt premium, discount and other debt costs. Interest expense does not include interest related to uncertain tax positions of $43 million for the first three months of 2014; $222 million for the twelve months ended December 31, 2013; $265 million for 2012; $338 million for 2011; $389 million for 2010; and $337 million for 2009. |
(b) | Preferred stock dividends related to our Series A convertible perpetual preferred stock held by an Employee Stock Ownership Plan Trust. |
(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. |