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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1994 1993 1992 1991 1990
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Earnings before
income taxes and
cumulative effect
of accounting change $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) -
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Earnings available for
fixed charges $9,733 $7,886 $10,359 $8,836 $8,233
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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
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1,395 1,589 1,620 1,794 1,847
Portion of rent expense
deemed to represent
interest factor 142 127 116 105 94
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Fixed charges $1,537 $1,716 $ 1,736 $1,899 $1,941
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Ratio of earnings to
fixed charges 6.3 4.6 6.0 4.7 4.2
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