EXHIBIT 12
PHILIP MORRIS COMPANIES INC. AND SUBSIDIARIES
Computation of Ratios of Earnings to Fixed Charges
(in millions of dollars)
-------------------
Nine Months Ended Three Months Ended
September 30, 2000 September 30, 2000
------------------ ------------------
Earnings before income taxes $ 10,658 $ 3,806
Add (Deduct):
Equity in net earnings of less than 50% owned
affiliates (179) (52)
Dividends from less than 50% owned
affiliates 69 13
Fixed charges 961 322
Interest capitalized, net of amortization 6 2
-------- --------
Earnings available for fixed charges $ 11,515 $ 4,091
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Fixed charges:
Interest incurred:
Consumer products $ 761 $ 253
Financial services 83 30
-------- --------
844 283
Portion of rent expense deemed to represent
interest factor 117 39
-------- --------
Fixed charges $ 961 $ 322
======== ========
Ratio of earnings to fixed charges 12.0 12.7
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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,
--------------------------------------------------------------------
1999 1998 1997 1996 1995
-------- -------- -------- -------- --------
Earnings before income
taxes and cumulative
effect of accounting
changes $ 12,695 $ 9,087 $ 10,611 $ 10,683 $ 9,347
Add (Deduct):
Equity in net earnings
of less than 50%
owned affiliates (197) (195) (207) (227) (246)
Dividends from less
than 50% owned
affiliates 56 70 138 160 202
Fixed charges 1,363 1,386 1,438 1,421 1,495
Interest capitalized,
net of amortization (2) (5) (16) 13 2
-------- -------- -------- -------- --------
Earnings available for
fixed charges $ 13,915 $ 10,343 $ 11,964 $ 12,050 $ 10,800
======== ======== ======== ======== ========
Fixed charges:
Interest incurred:
Consumer products $ 1,118 $ 1,166 $ 1,224 $ 1,197 $ 1,281
Financial services 89 77 67 81 84
-------- -------- -------- -------- --------
1,207 1,243 1,291 1,278 1,365
Portion of rent expense
deemed to represent
interest factor 156 143 147 143 130
-------- -------- -------- -------- --------
Fixed charges $ 1,363 $ 1,386 $ 1,438 $ 1,421 $ 1,495
======== ======== ======== ======== ========
Ratio of earnings to
fixed charges 10.2 7.5 8.3 8.5 7.2
======== ======== ======== ======== ========