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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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Six Months Ended Three Months Ended
June 30, 1996 June 30, 1996
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Earnings before income taxes and
cumulative effect of accounting changes $5,400 $2,748
Add (Deduct):
Equity in net earnings of less than 50%
owned affiliates (103) (69)
Dividends from less than 50% owned
affiliates 95 53
Fixed charges 699 337
Interest capitalized, net of amortization 6 1
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Earnings available for fixed charges $6,097 $3,070
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Fixed charges:
Interest incurred:
Consumer products $ 591 $ 286
Financial services and real estate 43 19
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634 305
Portion of rent expense deemed to represent
interest factor 65 32
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Fixed charges $ 699 $ 337
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Ratio of earnings to fixed charges 8.7 9.1
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EXHIBIT 12
PHILIP MORRIS COMPANIES INC. AND SUBSIDIARIES
Computation of Ratios of Earnings to Fixed Charges
(in millions of dollars)
-------------------
Years Ended December 31,
------------------------------------------------
1995 1994 1993 1992 1991
-------- -------- -------- -------- --------
Earnings before
income taxes and
cumulative effect
of accounting changes $ 9,347 $ 8,216 $ 6,196 $ 8,608 $ 6,971
Add (Deduct):
Equity in net earnings of
less than 50% owned
affiliates (246) (184) (164) (107) (95)
Dividends from less than
50% owned affiliates 202 165 151 125 72
Fixed charges 1,495 1,537 1,716 1,736 1,899
Interest capitalized, net
of amortization 2 (1) (13) (3) (11)
------- ------- ------- ------- -------
Earnings available for
fixed charges $10,800 $ 9,733 $ 7,886 $10,359 $ 8,836
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Fixed charges:
Interest incurred:
Consumer products $ 1,281 $ 1,317 $ 1,502 $ 1,525 $ 1,711
Financial services and
real estate 84 78 87 95 83
------- ------- ------- ------- -------
1,365 1,395 1,589 1,620 1,794
Portion of rent expense
deemed to represent
interest factor 130 142 127 116 105
------- ------- ------- ------- -------
Fixed charges $ 1,495 $ 1,537 $ 1,716 $ 1,736 $ 1,899
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Ratio of earnings to
fixed charges 7.2 6.3 4.6 6.0 4.7
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