Exhibit 12.1
PFIZER INC. AND SUBSIDIARY COMPANIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
| Year Ended December 31, | ||||||||||||||||||||
(MILLIONS OF DOLLARS, EXCEPT RATIOS) | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||
Determination of earnings: | ||||||||||||||||||||
Income from continuing operations before provision for taxes on income, noncontrolling interests and cumulative effect of a change in accounting principles | $ | 12,240 | $ | 15,716 | $ | 11,242 | $ | 11,481 | $ | 8,846 | ||||||||||
Less: | ||||||||||||||||||||
Noncontrolling interests | 47 | 44 | 47 | 60 | 46 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Income attributable to Pfizer Inc. | 12,193 | 15,672 | 11,195 | 11,421 | 8,800 | |||||||||||||||
Add (deduct): | ||||||||||||||||||||
Capitalized interest | (41 | ) | (32 | ) | (41 | ) | (50 | ) | (36 | ) | ||||||||||
Amortization of capitalized interest | 54 | 65 | 69 | 95 | 29 | |||||||||||||||
Equity (income)/loss from equity-method investments | (4 | ) | (55 | ) | (99 | ) | (82 | ) | (78 | ) | ||||||||||
Distributed income of equity method investments | 136 | 162 | 85 | 190 | 26 | |||||||||||||||
Fixed charges | 1,435 | 1,495 | 1,627 | 1,812 | 1,930 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total earnings as defined | $ | 13,772 | $ | 17,307 | $ | 12,836 | $ | 13,386 | $ | 10,671 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Fixed charges: | ||||||||||||||||||||
Interest expense(a) | $ | 1,360 | $ | 1,414 | $ | 1,522 | $ | 1,681 | $ | 1,797 | ||||||||||
Preferred stock dividends(b) | 3 | 3 | 4 | 5 | 6 | |||||||||||||||
Rents(c) | 72 | 78 | 101 | 126 | 127 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Fixed charges | 1,435 | 1,495 | 1,627 | 1,812 | 1,930 | |||||||||||||||
Capitalized interest | 41 | 32 | 41 | 50 | 36 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total fixed charges | $ | 1,476 | $ | 1,527 | $ | 1,668 | $ | 1,862 | $ | 1,966 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Ratio of earnings to fixed charges | 9.3 | 11.3 | 7.7 | 7.2 | 5.4 | |||||||||||||||
| (a) | Interest expense includes amortization of debt premium, discount and other debt costs. Interest expense does not include interest related to uncertain tax positions of $182 million for 2014; $222 million for 2013; $265 million for 2012; $338 million for 2011; and $389 million for 2010. |
| (b) | Preferred stock dividends related to our Series A convertible perpetual preferred stock held by an employee stock ownership plan trust. |
| (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. |
