Exhibit 12
PFIZER INC AND SUBSIDIARY COMPANIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(in millions, except ratios) | |||||||||||||||||||
Determination of Earnings: | |||||||||||||||||||
Income from continuing operations before provision for | |||||||||||||||||||
taxes on income, minority interests and cumulative | |||||||||||||||||||
effect of a change in accounting principles | $ | 9,278 | $ | 13,028 | $ | 10,800 | $ | 13,403 | $ | 2,781 | |||||||||
Less: | |||||||||||||||||||
Minority interests | 42 | 12 | 12 | 7 | 1 | ||||||||||||||
Income adjusted for minority interests | 9,236 | 13,016 | 10,788 | 13,396 | 2,780 | ||||||||||||||
Add: | |||||||||||||||||||
Fixed charges | 541 | 642 | 622 | 505 | 438 | ||||||||||||||
Total earnings as defined | $ | 9,777 | $ | 13,658 | $ | 11,410 | $ | 13,901 | $ | 3,218 | |||||||||
Fixed charges: | |||||||||||||||||||
Interest expense (a) | $ | 397 | $ | 488 | $ | 471 | $ | 347 | $ | 270 | |||||||||
Preferred stock dividends (b) | 11 | 14 | 14 | 12 | 10 | ||||||||||||||
Rents (c) | 133 | 140 | 137 | 146 | 158 | ||||||||||||||
Fixed charges | 541 | 642 | 622 | 505 | 438 | ||||||||||||||
Capitalized interest | 43 | 29 | 17 | 12 | 20 | ||||||||||||||
Total fixed charges | $ | 584 | $ | 671 | $ | 639 | $ | 517 | $ | 458 | |||||||||
Ratio of earnings to fixed charges | 16.7 | 20.4 | 17.9 | 26.9 | 7.0 |
All financial information reflects the following as discontinued operations for all periods presented: the Consumer Healthcare business; for 2006, 2005, 2004 and 2003: certain European generics businesses; and for 2004 and 2003: our in-vitro allergy and autoimmune diagnostics testing, and surgical ophthalmics.
All financial information reflects the following as discontinued operations for 2003: our confectionery, shaving and fish-care products businesses, as well as the Estrostep, Loestrin and femhrt women's health product lines for all the years presented.
(a) | Interest expense includes amortization of debt premium, discount and expenses. Interest expense does not include interest related to uncertain tax positions of $331 million for 2007; $200 million for 2006; $203 million for 2005; $201 million for 2004 and $180 million for 2003. |
(b) | Preferred stock dividends are from our Series A convertible perpetual preferred stock held by an Employee Stock Ownership Plan assumed in connection with our acquisition of Pharmacia. |
(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. |