EXHIBIT 12
PHILIP MORRIS COMPANIES INC. AND SUBSIDIARIES
Computation of Ratios of Earnings to Fixed Charges
(Dollars in millions)
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Six Months Ended Three Months Ended
June 30, 1995 June 30, 1995
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Earnings before income taxes and cumulative
effect of accounting changes $4,741 $2,411
Add (Deduct):
Equity in net earnings of less than 50% owned
affiliates (116) (61)
Dividends from less than 50% owned
affiliates 125 59
Fixed charges 787 391
Interest amortized, net of capitalization 2 4
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Earnings available for fixed charges $5,539 $2,804
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Fixed charges:
Interest incurred:
Consumer products $ 675 $ 336
Financial services and real estate 41 19
------ ------
716 355
Portion of rent expense deemed to represent
interest factor 71 36
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Fixed charges $ 787 $ 391
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Ratio of earnings to fixed charges 7.0 7.2
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EXHIBIT 12
PHILIP MORRIS COMPANIES INC. AND SUBSIDIARIES
Computation of Ratios of Earnings to Fixed Charges (continued)
(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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