EXHIBIT 12
PHILIP MORRIS COMPANIES INC. AND SUBSIDIARIES
Computation of Ratios of Earnings to Fixed Charges
(in millions of dollars)
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Six Months Ended Three Months Ended
June 30, 2001 June 30, 2001
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Earnings before income taxes and minority interest $6,682 $3,766
Add (deduct):
Equity in net earnings of less than 50% owned
affiliates (111) (50)
Dividends from less than 50% owned
affiliates 25 11
Fixed charges 1,165 555
Interest capitalized, net of amortization 5 2
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Earnings available for fixed charges $7,766 $4,284
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Fixed charges:
Interest incurred:
Consumer products $1,018 $ 483
Financial services 55 26
------ ------
1,073 509
Portion of rent expense deemed to represent
interest factor 92 46
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Fixed charges $1,165 $ 555
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Ratio of earnings to fixed charges 6.7 7.7
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EXHIBIT 12
PHILIP MORRIS COMPANIES INC. AND SUBSIDIARIES
Computation of Ratios of Earnings to Fixed Charges
(in millions of dollars)
------------------
For the Years Ended December 31,
---------------------------------------------------------------------------
2000 1999 1998 1997 1996
------- ------- ------- -------- --------
Earnings before income taxes
and minority interest $14,087 $12,821 $ 9,215 $10,698 $10,726
Add (deduct):
Equity in net earnings
of less than 50%
owned affiliates (228) (197) (195) (207) (227)
Dividends from less
than 50% owned
affiliates 70 56 70 138 160
Fixed charges 1,348 1,363 1,386 1,438 1,421
Interest capitalized,
net of amortization 7 (2) (5) (16) 13
------- ------- ------- ------- -------
Earnings available for
fixed charges $15,284 $14,041 $10,471 $12,051 $12,093
======= ======= ======= ======= =======
Fixed charges:
Interest incurred:
Consumer products $ 1,087 $ 1,118 $ 1,166 $ 1,224 $ 1,197
Financial services 114 89 77 67 81
------- ------- ------- ------- -------
1,201 1,207 1,243 1,291 1,278
Portion of rent expense
deemed to represent
interest factor 147 156 143 147 143
------- ------- ------- ------- -------
Fixed charges $ 1,348 $ 1,363 $ 1,386 $ 1,438 $ 1,421
======= ======= ======= ======= =======
Ratio of earnings to
fixed charges 11.3 10.3 7.6 8.4 8.5
======= ======= ======= ======= =======