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EXHIBIT 12
PHILIP MORRIS COMPANIES INC. AND SUBSIDIARIES
Computation of Ratios of Earnings to Fixed Charges (continued)
(dollars in millions)
---------------------
Nine Months Ended Three Months Ended
September 30, 1995 September 30, 1995
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Earnings before income taxes $7,190 $2,449
Add (Deduct):
Equity in net earnings of less than 50% owned
affiliates (166) (50)
Dividends from less than 50% owned
affiliates 153 29
Fixed charges 1,158 371
Interest amortization, net of capitalization 2 -
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Earnings available for fixed charges $8,337 $2,799
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Fixed charges:
Interest incurred:
Consumer products $ 990 $ 316
Financial services and real estate 62 20
------ ------
1,052 336
Portion of rent expense deemed to represent
interest factor 106 35
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Fixed charges $1,158 $ 371
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Ratio of earnings to fixed charges 7.2 7.5
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EXHIBIT 12
PHILIP MORRIS COMPANIES INC. AND SUBSIDIARIES
Computation of Ratios of Earnings to Fixed Charges
(dollars in millions)
---------------------
Years Ended December 31,
------------------------------------------------------------------------
1994 1993 1992 1991 1990
-------- -------- -------- -------- --------
Earnings before
income taxes and
cumulative effect
of accounting changes $ 8,216 $ 6,196 $ 8,608 $ 6,971 $ 6,311
Add (Deduct):
Equity in net earnings of
less than 50% owned
affiliates (184) (164) (107) (95) (90)
Dividends from less than
50% owned affiliates 165 151 125 72 71
Fixed charges 1,537 1,716 1,736 1,899 1,941
Interest capitalized, net
of amortization (1) (13) (3) (11) -
------- ------- ------- ------- -------
Earnings available for
fixed charges $ 9,733 $ 7,886 $10,359 $ 8,836 $ 8,233
======= ======= ======= ======= =======
Fixed charges:
Interest incurred:
Consumer products $ 1,317 $ 1,502 $ 1,525 $ 1,711 $ 1,754
Financial services and
real estate 78 87 95 83 93
------- ------- ------- ------- -------
1,395 1,589 1,620 1,794 1,847
Portion of rent expense
deemed to represent
interest factor 142 127 116 105 94
------- ------- ------- ------- -------
Fixed charges $ 1,537 $ 1,716 $ 1,736 $ 1,899 $ 1,941
======= ======= ======= ======= =======
Ratio of earnings to
fixed charges 6.3 4.6 6.0 4.7 4.2
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