Exhibit 12.1
PFIZER INC AND SUBSIDIARY COMPANIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Three Ended April 1, | Year Ended December 31, | |||||||||||||||||||||||
(IN MILLIONS, EXCEPT RATIOS) | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||||
Determination of earnings: | ||||||||||||||||||||||||
Income from continuing operations before provision for taxes on income, noncontrolling interests and cumulative effect of a change in accounting principles | $ | 2,553 | $ | 12,762 | $ | 9,282 | $ | 10,674 | $ | 9,520 | $ | 9,127 | ||||||||||||
Less: | ||||||||||||||||||||||||
Noncontrolling interests | 9 | 42 | 31 | 8 | 22 | 40 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income attributable to Pfizer Inc. | 2,544 | 12,720 | 9,251 | 10,666 | 9,498 | 9,087 | ||||||||||||||||||
Add: | ||||||||||||||||||||||||
Fixed charges | 423 | 1,813 | 1,932 | 1,358 | 647 | 541 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total earnings as defined | $ | 2,967 | $ | 14,533 | $ | 11,183 | $ | 12,024 | $ | 10,145 | $ | 9,628 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Fixed charges: | ||||||||||||||||||||||||
Interest expense(a) | $ | 390 | $ | 1,681 | $ | 1,797 | $ | 1,232 | $ | 516 | $ | 397 | ||||||||||||
Preferred stock dividends(b) | 1 | 5 | 6 | 7 | 8 | 11 | ||||||||||||||||||
Rents(c) | 32 | 127 | 129 | 119 | 123 | 133 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Fixed charges | 423 | 1,813 | 1,932 | 1,358 | 647 | 541 | ||||||||||||||||||
Capitalized interest | 10 | 50 | 36 | 34 | 46 | 43 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total fixed charges | $ | 433 | $ | 1,863 | $ | 1,968 | $ | 1,392 | $ | 693 | $ | 584 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratio of earnings to fixed charges | 6.9 | 7.8 | 5.7 | 8.6 | 14.6 | 16.5 | ||||||||||||||||||
| (a) | Interest expense includes amortization of debt premium, discount and expenses. Interest expense does not include interest related to uncertain tax positions of $83 million for the first three months of 2012; $346 million for 2011; $384 million for 2010; $337 million for 2009; $333 million for 2008; and $331 million for 2007. |
| (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. |
All financial information reflects Capsugel (the sale of which closed on August 1, 2011) as a discontinued operation.
