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EXHIBIT 12
PFIZER INC AND SUBSIDIARY COMPANIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Year Ended December 31,
(millions of dollars, except ratio)
2002 2001 2000 1999 1998
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Determination of Earnings:
Income from continuing operations
before provision for taxes on income,
minority interests and cumulative effect
of a change in accounting principle $11,796 $ 9,984 $ 5,501 $ 6,945 $ 4,397
Less:
Minority interests 6 14 13 5 2
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Adjusted income 11,790 9,970 5,488 6,940 4,395
Fixed charges 365 359 478 463 334
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Total earnings as defined $12,155 $10,329 $ 5,966 $ 7,403 $ 4,729
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Fixed charges
Interest expense (a) $ 251 $ 266 $ 381 $ 364 $ 251
Rents (b) 114 93 97 99 83
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Fixed charges 365 359 478 463 334
Capitalized interest 28 56 46 40 26
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Total fixed charges $ 393 $ 415 $ 524 $ 503 $ 360
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Ratio of earnings to fixed charges 30.9 24.9 11.4 14.7 13.1
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All financial data for 2002, 2001 and 2000 reflect our confectionery, shaving
and fish-care products businesses as well as certain women's health product
lines as discontinued operations. We have not restated periods prior to 2000 for
these discontinued operations because the data are not available. After we
reorganized our financial systems due to the merger with Warner-Lambert Company,
the level of detail necessary to develop financial information for these
discontinued operations for periods prior to 2000 was no longer available.
(a) Interest expense includes amortization of debt discount and expenses.
(b) Rents included in the computation consist of one-third of rental
expense which we believe to be a conservative estimate of an interest
factor in our leases, which are not material.