EXHIBIT 12
PHILIP MORRIS COMPANIES INC. AND SUBSIDIARIES
Computation of Ratios of Earnings to Fixed Charges
(in millions of dollars)
------------
<Table>
<Caption>
For the Years Ended December 31,
-----------------------------------------------
2001 2000 1999 1998 1997
---- ---- ---- ---- ----
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)
------- ------- ------- ------- -------
Earnings available for fixed
charges $16,040 $15,284 $14,041 $10,471 $12,051
======= ======= ======= ======= =======
Fixed charges:
Interest incurred:
Consumer products $ 1,665 $ 1,087 $ 1,118 $ 1,166 $ 1,224
Financial services 102 114 89 77 67
------- ------- ------- ------- -------
1,767 1,201 1,207 1,243 1,291
Portion of rent expense deemed to
represent interest factor 178 147 156 143 147
------- ------- ------- ------- -------
Fixed charges $ 1,945 $ 1,348 $ 1,363 $ 1,386 $ 1,438
======= ======= ======= ======= =======
Ratio of earnings to fixed charges 8.2 11.3 10.3 7.6 8.4
======= ======= ======= ======= =======
</Table>