Exhibit 12
PFIZER INC AND SUBSIDIARY COMPANIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
| | | | | | | | | | | | | | | | | | | | | |
| | | Year Ended December 31, | |
| (in millions, except ratios) | | 2006 | | | 2005 | | | 2004 | | | 2003 | | | 2002 | |
| Determination of Earnings: | | | | | | | | | | | | | | | | | | | | |
| Income from continuing operations before provision for taxes on income, minority interests and cumulative effect of a change in accounting principles | | $ | 13,028 | | | $ | 10,800 | | | $ | 13,403 | | | $ | 2,781 | | | $ | 11,269 | |
| Less: | | | | | | | | | | | | | | | | | | | | |
| Minority interests | | | 12 | | | | 12 | | | | 7 | | | | 1 | | | | 3 | |
| | | | | | | | | | | | | | | | |
| Income adjusted for minority interests | | | 13,016 | | | | 10,788 | | | | 13,396 | | | | 2,780 | | | | 11,266 | |
| Add: | | | | | | | | | | | | | | | | | | | | |
| Fixed charges | | | 642 | | | | 622 | | | | 505 | | | | 438 | | | | 318 | |
| | | | | | | | | | | | | | | | |
| Total earnings as defined | | $ | 13,658 | | | $ | 11,410 | | | $ | 13,901 | | | $ | 3,218 | | | $ | 11,584 | |
| | | | | | | | | | | | | | | | |
| Fixed charges: | | | | | | | | | | | | | | | | | | | | |
| Interest expense (a) | | $ | 488 | | | $ | 471 | | | $ | 347 | | | $ | 270 | | | $ | 251 | |
| Preferred stock dividends (b) | | | 14 | | | | 14 | | | | 12 | | | | 10 | | | | — | |
| Rents (c) | | | 140 | | | | 137 | | | | 146 | | | | 158 | | | | 67 | |
| | | | | | | | | | | | | | | | |
| Fixed charges | | | 642 | | | | 622 | | | | 505 | | | | 438 | | | | 318 | |
| Capitalized interest | | | 29 | | | | 17 | | | | 12 | | | | 20 | | | | 28 | |
| | | | | | | | | | | | | | | | |
| Total fixed charges | | $ | 671 | | | $ | 639 | | | $ | 517 | | | $ | 458 | | | $ | 346 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Ratio of earnings to fixed charges | | | 20.4 | | | | 17.9 | | | | 26.9 | | | | 7.0 | | | | 33.5 | |
| | | | | | | | | | | | | | | | |
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, 2002, and 2001: 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. |
| |
| (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. |
