Exhibit 12
Pfizer Inc. and Subsidiary Companies
Computation of Ratio of Earnings to Fixed Charges
Year Ended December 31, | ||||||||||||||||||||
(MILLIONS OF DOLLARS, EXCEPT RATIOS) | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||
Determination of earnings: | ||||||||||||||||||||
Income from continuing operations before provision for taxes on income, noncontrolling interests and cumulative effect of a change in accounting principles | $ | 8,965 | $ | 12,240 | $ | 15,716 | $ | 11,242 | $ | 11,481 | ||||||||||
Less: | ||||||||||||||||||||
Noncontrolling interests | 39 | 47 | 43 | 47 | 60 | |||||||||||||||
Income attributable to Pfizer Inc. | 8,925 | 12,192 | 15,673 | 11,195 | 11,421 | |||||||||||||||
Add (deduct): | ||||||||||||||||||||
Capitalized interest | (32 | ) | (41 | ) | (32 | ) | (41 | ) | (50 | ) | ||||||||||
Amortization of capitalized interest | 25 | 31 | 34 | 36 | 22 | |||||||||||||||
Equity (income)/loss from equity-method investments | 191 | (24 | ) | (67 | ) | (105 | ) | (83 | ) | |||||||||||
Distributed income of equity method investments | 161 | 136 | 162 | 85 | 190 | |||||||||||||||
Fixed charges | 1,282 | 1,435 | 1,495 | 1,627 | 1,812 | |||||||||||||||
Total earnings as defined | 10,554 | 13,729 | $ | 17,265 | $ | 12,796 | $ | 13,311 | ||||||||||||
Fixed charges: | ||||||||||||||||||||
Interest expense(a) | $ | 1,199 | $ | 1,360 | $ | 1,414 | $ | 1,522 | $ | 1,681 | ||||||||||
Preferred stock dividends(b) | 2 | 3 | 3 | 4 | 5 | |||||||||||||||
Rents(c) | 81 | 72 | 78 | 101 | 126 | |||||||||||||||
Fixed charges | 1,282 | 1,435 | 1,495 | 1,627 | 1,812 | |||||||||||||||
Capitalized interest | 32 | 41 | 32 | 41 | 50 | |||||||||||||||
Total fixed charges | $ | 1,314 | $ | 1,476 | $ | 1,527 | $ | 1,668 | $ | 1,862 | ||||||||||
Ratio of earnings to fixed charges | 8.0 | 9.3 | 11.3 | 7.7 | 7.2 | |||||||||||||||
(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 $246 million for 2015; $182 million for 2014; $222 million for 2013; $265 million for 2012; and $338 million for 2011. | ||||||||||||||||||||
(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. | ||||||||||||||||||||
Amounts may not add due to rounding. Percentages have been calculated using unrounded amounts. |