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, 2002 June 30, 2002
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Earnings before income taxes and minority interest $8,196 $4,318
Add (deduct):
Equity in net earnings of less than 50% owned affiliates (105) (49)
Dividends from less than 50% owned affiliates 27 5
Fixed charges 824 424
Interest capitalized, net of amortization 5 2
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Earnings available for fixed charges $8,947 $4,700
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Fixed charges:
Interest incurred:
Consumer products $ 686 $ 355
Financial services 49 25
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735 380
Portion of rent expense deemed to represent interest factor 89 44
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Fixed charges $ 824 $ 424
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Ratio of earnings to fixed charges 10.9 11.1
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Exhibit 12
PHILIP MORRIS COMPANIES INC. AND SUBSIDIARIES
Computation of Ratios of Earnings to Fixed Charges
(in millions of dollars)
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For the Years Ended December 31,
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2001 2000 1999 1998 1997
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Earnings before income taxes, minority
interest and cumulative effect of
accounting change $14,284 $14,087 $12,821 $ 9,215 $10,698
Add (deduct):
Equity in net earnings of less than 50%
owned affiliates (228) (228) (197) (195) (207)
Dividends from less than 50% owned
affiliates 29 70 56 70 138
Fixed charges 1,945 1,348 1,363 1,386 1,438
Interest capitalized, net of
amortization 10 7 (2) (5) (16)
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Earnings available for fixed charges $16,040 $15,284 $14,041 $10,471 $12,051
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Fixed charges:
Interest incurred:
Consumer products $ 1,665 $ 1,087 $ 1,118 $ 1,166 $ 1,224
Financial services 102 114 89 77 67
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1,767 1,201 1,207 1,243 1,291
Portion of rent expense deemed to
represent interest factor 178 147 156 143 147
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Fixed charges $ 1,945 $ 1,348 $ 1,363 $ 1,386 $ 1,438
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Ratio of earnings to fixed charges 8.2 11.3 10.3 7.6 8.4
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