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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1995 1994 1993 1992 1991
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Earnings before
income taxes and
cumulative effect
of accounting change $ 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)
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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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