EXHIBIT 12
PHILIP MORRIS COMPANIES INC. AND SUBSIDIARIES
Computation of Ratios of Earnings to Fixed Charges
(in millions of dollars)
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Nine Months Ended Three Months Ended
September 30, 2001 September 30, 2001
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Earnings before income taxes and minority interest $10,613 $3,931
Add (deduct):
Equity in net earnings of less than 50% owned
affiliates (152) (41)
Dividends from less than 50% owned
affiliates 26 1
Fixed charges 1,568 403
Interest capitalized, net of amortization 7 2
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Earnings available for fixed charges $12,062 $4,296
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Fixed charges:
Interest incurred:
Consumer products $ 1,352 $ 334
Financial services 79 24
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1,431 358
Portion of rent expense deemed to represent
interest factor 137 45
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Fixed charges $ 1,568 $ 403
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Ratio of earnings to fixed charges 7.7 10.7
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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
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Earnings available for
fixed charges $15,284 $14,041 $10,471 $12,051 $12,093
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Fixed charges:
Interest incurred:
Consumer products $ 1,087 $ 1,118 $ 1,166 $ 1,224 $ 1,197
Financial services 114 89 77 67 81
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1,201 1,207 1,243 1,291 1,278
Portion of rent expense
deemed to represent
interest factor 147 156 143 147 143
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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
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