EXHIBIT 12
PHILIP MORRIS COMPANIES INC. AND SUBSIDIARIES
Computation of Ratios of Earnings to Fixed Charges
(Dollars in millions)
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Years Ended December 31,
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1993 1992 1991 1990 1989
-------- -------- -------- -------- --------
Earnings before
income taxes and
cumulative effect
of accounting change $6,196 $ 8,608 $6,971 $6,311 $5,058
Add (Deduct):
Equity in net earnings of
less than 50% owned
affiliates (164) (107) (95) (90) (62)
Dividends from less than
50% owned affiliates 151 125 72 71 34
Fixed charges 1,716 1,736 1,899 1,941 1,971
Interest capitalized, net
of amortization (13) (3) (11) - (8)
------ ------- ------ ------ ------
Earnings available for
fixed charges $7,886 $10,359 $8,836 $8,233 $6,993
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Fixed charges:
Interest incurred:
Consumer products $1,502 $ 1,525 $1,711 $1,754 $1,810
Financial services and
real estate 87 95 83 93 91
------ ------- ------ ------ ------
1,589 1,620 1,794 1,847 1,901
Portion of rent expense
deemed to represent
interest factor 127 116 105 94 70
------ ------- ------ ------ ------
Fixed charges $1,716 $ 1,736 $1,899 $1,941 $1,971
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Ratio of earnings to
fixed charges 4.6 6.0 4.7 4.2 3.5
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PHILIP MORRIS COMPANIES INC. AND SUBSIDIARIES
Computation of Ratios of Earnings to Fixed Charges (Cont'd)
(Dollars in millions)
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Six Months Ended Three Months Ended
June 30, 1994 June 30, 1994
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Earnings before income taxes $4,193 $2,150
Add (Deduct):
Equity in net earnings of less than 50% owned
affiliates (122) (59)
Dividends from less than 50% owned
affiliates 135 64
Fixed charges 765 377
Interest amortization, net of capitalization 6 8
------ ------
Earnings available for fixed charges $4,977 $2,540
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Fixed charges:
Interest incurred:
Consumer products $ 661 $ 324
Financial services and real estate 40 21
------ ------
701 345
Portion of rent expense deemed to represent
interest factor 64 32
------ ------
Fixed charges $ 765 $ 377
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Ratio of earnings to fixed charges 6.5 6.7
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