Exhibit 12
PFIZER INC. AND SUBSIDIARY COMPANIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Six Months Ended July 3, | Year Ended December 31, | |||||||||||||||||||||||
(in millions, except ratios) | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||||
Determination of earnings: | ||||||||||||||||||||||||
Income from continuing operations | ||||||||||||||||||||||||
before provision for taxes on income, noncontrolling interests and cumulative effect of a change in accounting principles | $ | 6,800 | $ | 9,274 | $ | 10,668 | $ | 9,513 | $ | 9,120 | $ | 12,886 | ||||||||||||
Less: | ||||||||||||||||||||||||
Noncontrolling interests | 20 | 32 | 9 | 23 | 42 | 12 | ||||||||||||||||||
Income attributable to Pfizer Inc. | 6,780 | 9,242 | 10,659 | 9,490 | 9,078 | $ | 12,874 | |||||||||||||||||
Add: | ||||||||||||||||||||||||
Fixed charges | 930 | 1,936 | 1,361 | 647 | 541 | 642 | ||||||||||||||||||
Total earnings as defined | $ | 7,710 | $ | 11,178 | $ | 12,020 | $ | 10,137 | $ | 9,619 | $ | 13,516 | ||||||||||||
Fixed charges: | ||||||||||||||||||||||||
Interest expense(a) | $ | 862 | $ | 1,799 | $ | 1,233 | $ | 516 | $ | 397 | $ | 488 | ||||||||||||
Preferred stock dividends(b) | 2 | 6 | 7 | 8 | 11 | 14 | ||||||||||||||||||
Rents(c) | 66 | 131 | 121 | 123 | 133 | 140 | ||||||||||||||||||
Fixed charges | 930 | 1,936 | 1,361 | 647 | 541 | 642 | ||||||||||||||||||
Capitalized interest | 13 | 36 | 34 | 46 | 43 | 29 | ||||||||||||||||||
Total fixed charges | $ | 943 | $ | 1,972 | $ | 1,395 | $ | 693 | $ | 584 | $ | 671 | ||||||||||||
Ratio of earnings to fixed charges | 8.2 | 5.7 | 8.6 | 14.6 | 16.5 | 20.1 |
All financial information reflects the following as discontinued operations: Capsugel (the sale of which closed on August 1, 2011), the Company’s former consumer healthcare business, and certain European generics businesses.
(a) | Interest expense includes amortization of debt premium, discount and expenses. Interest expense does not include interest related to uncertain tax positions of $155 million for the first six months of 2011; $384 million for 2010; $337 million for 2009; $333 million for 2008; $331 million for 2007; and $200 million for 2006. |
(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. |