Exhibit 12
PFIZER INC. AND SUBSIDIARY COMPANIES
RATIO OF EARNINGS TO FIXED CHARGES AND RATIO OF EARNINGS TO FIXED
CHARGES AND PREFERRED STOCK DIVIDENDS
Year Ended December 31, | ||||||||||||||||||||||
(in millions, except ratios) | 2003 | 2002 | 2001 | 2000 | 1999 | |||||||||||||||||
Determination of earnings: | ||||||||||||||||||||||
Income from continuing operations before provision for taxes on income, minority interests and cumulative effect of change in accounting principles | $ | 3,263 | $ | 11,796 | $ | 9,984 | $ | 5,501 | $ | 6,945 | ||||||||||||
Less: | ||||||||||||||||||||||
Minority interests | 3 | 6 | 14 | 13 | 5 | |||||||||||||||||
Adjusted income | 3,260 | 11,790 | 9,970 | 5,488 | 6,940 | |||||||||||||||||
Fixed charges | 491 | 365 | 359 | 478 | 463 | |||||||||||||||||
Total earnings as defined | $ | 3,751 | $ | 12,155 | $ | 10,329 | $ | 5,966 | $ | 7,403 | ||||||||||||
Fixed charges: | ||||||||||||||||||||||
Interest expense(a) | $ | 270 | $ | 251 | $ | 266 | $ | 381 | $ | 364 | ||||||||||||
Preferred stock dividends(b) | 10 | — | — | — | — | |||||||||||||||||
Rents(c) | 211 | 114 | 93 | 97 | 99 | |||||||||||||||||
Fixed charges | 491 | 365 | 359 | 478 | 463 | |||||||||||||||||
Capitalized interest | 20 | 28 | 56 | 46 | 40 | |||||||||||||||||
Total fixed charges | $ | 511 | $ | 393 | $ | 415 | $ | 524 | $ | 503 | ||||||||||||
Ratio of earnings to fixed charges | 7.3 | 30.9 | 24.9 | 11.4 | 14.7 | |||||||||||||||||
All financial data for 2003, 2002, 2001 and 2000 reflect our confectionery, shaving and fish-care products businesses as well as the Estrostep, Loestrin and femhrt women’s health product lines as discontinued operations. We have not restated periods prior to 2000 for these discontinued operations because the data are not available. After we reorganized our financial systems due to the merger with Warner-Lambert Company, the level of detail necessary to develop financial information for these discontinued operations for periods prior to 2000 was no longer available.
(a) | Interest expense includes amortization of debt discount and expenses. | |
(b) | Preferred stock dividends are from our Series A convertible perpetual preferred stock held by an Employee Stock Ownership Trust 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. |