Pfizer (PFE) 10-Q 2010 Q2 Quarterly report

Exhibit 12

PFIZER INC. AND SUBSIDIARY COMPANIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

	Six Months Ended July 4,		Year Ended December 31,
(in millions, except ratios)	2010		2009		2008		2007		2006		2005
Determination of earnings:
Income from continuing operations
before provision for taxes on income, noncontrolling interests and cumulative effect of a change in accounting principles	$	7,153	$	10,827	$	9,694	$	9,278	$	13,028	$	10,800
Less:
Noncontrolling interests		19		9		23		42		12		12
Income attributable to Pfizer Inc.		7,134		10,818		9,671		9,236		13,016		10,788
Add:
Fixed charges		975		1,361		647		541		642		622
Total earnings as defined	$	8,109	$	12,179	$	10,318	$	9,777	$	13,658	$	11,410
Fixed charges:
Interest expense(a)	$	911	$	1,233	$	516	$	397	$	488	$	471
Preferred stock dividend(b)		3		7		8		11		14		14
Rents(c)		61		121		123		133		140		137
Fixed charges		975		1,361		647		541		642		622
Capitalized interest		18		34		46		43		29		17
Total fixed charges	$	993	$	1,395	$	693	$	584	$	671	$	639
Ratio of earnings to fixed charges		8.2		8.7		14.9		16.7		20.4		17.9

All financial information reflects the following as discontinued operations for 2006 and 2005: the Company’s former consumer healthcare business, and certain European generics business.

(a) Interest expense includes amortization of debt premium, discount and expenses. Interest expense does not include interest related to uncertain tax positions of $168 million for the first six months of 2010; $337 million for 2009; $333 million for 2008; $331 million for 2007; $200 million for 2006; and $203 million for 2005.

(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 in 2003.

(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.