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) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||
Determination of earnings: | ||||||||||||||||||||
Income from continuing operations before provision for taxes on income, noncontrolling interests and cumulative effect of a change in accounting principles | $ | 12,305 | $ | 8,351 | $ | 8,965 | $ | 12,240 | $ | 15,716 | ||||||||||
Less: | ||||||||||||||||||||
Noncontrolling interests | 57 | 44 | 39 | 47 | 43 | |||||||||||||||
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Income attributable to Pfizer Inc. | 12,248 | 8,307 | 8,925 | 12,192 | 15,673 | |||||||||||||||
Add (deduct): | ||||||||||||||||||||
Capitalized interest | (72 | ) | (61 | ) | (32 | ) | (41 | ) | (32 | ) | ||||||||||
Amortization of capitalized interest | 41 | 59 | 25 | 31 | 34 | |||||||||||||||
Equity (income)/loss from equity-method investments | (274 | ) | (49 | ) | 191 | (24 | ) | (67 | ) | |||||||||||
Distributed income of equity-method investments | 269 | 119 | 161 | 136 | 162 | |||||||||||||||
Fixed charges | 1,376 | 1,285 | 1,282 | 1,435 | 1,495 | |||||||||||||||
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Total earnings as defined | $ | 13,588 | $ | 9,661 | $ | 10,554 | $ | 13,729 | $ | 17,265 | ||||||||||
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Fixed charges: | ||||||||||||||||||||
Interest expense(a) | $ | 1,270 | $ | 1,186 | $ | 1,199 | $ | 1,360 | $ | 1,414 | ||||||||||
Preferred stock dividends(b) | 2 | 2 | 2 | 3 | 3 | |||||||||||||||
Rents(c) | 105 | 97 | 81 | 72 | 78 | |||||||||||||||
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Fixed charges | 1,376 | 1,285 | 1,282 | 1,435 | 1,495 | |||||||||||||||
Capitalized interest | 72 | 61 | 32 | 41 | 32 | |||||||||||||||
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Total fixed charges | $ | 1,448 | $ | 1,346 | $ | 1,314 | $ | 1,476 | $ | 1,527 | ||||||||||
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Ratio of earnings to fixed charges | 9.4 | 7.2 | 8.0 | 9.3 | 11.3 | |||||||||||||||
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| (a) | Interest expense includes amortization of debt premium, discount and other debt costs. Interest expense does not include interest related to tax matters (primarily uncertain tax positions) of $271 million for 2017; $242 million for 2016; $246 million for 2015; $182 million for 2014; and $222 million for 2013. |
| (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 ofone-third of rental expense, which we believe to be a conservative estimate of an interest factor in our leases, which are not material. |
Amounts may not add due to rounding. Percentages have been calculated using unrounded amounts.
