EXHIBIT 12
PHILIP MORRIS COMPANIES INC. AND SUBSIDIARIES
Computation of Ratios of Earnings to Fixed Charges
(in millions of dollars)
-------------------
Six Months Ended Three Months Ended
June 30, 1997 June 30, 1997
---------------- ------------------
Earnings before income taxes and
cumulative effect of accounting changes $ 6,064 $ 3,085
Add (Deduct):
Equity in net earnings of less than 50%
owned affiliates (105) (54)
Dividends from less than 50% owned
affiliates 82 48
Fixed charges 743 377
Interest capitalized, net of amortization 2 1
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Earnings available for fixed charges $ 6,786 $ 3,457
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Fixed charges:
Interest incurred:
Consumer products $ 636 $ 324
Financial services and real estate 35 17
------- -------
671 341
Portion of rent expense deemed to represent
interest factor 72 36
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Fixed charges $ 743 $ 377
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Ratio of earnings to fixed charges 9.1 9.2
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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,
----------------------------------------------------
1996 1995 1994 1993 1992
-------- -------- -------- -------- --------
Earnings before income
taxes and cumulative
effect of accounting
changes $ 10,683 $ 9,347 $ 8,216 $ 6,196 $ 8,608
Add (Deduct):
Equity in net earnings
of less than 50%
owned affiliates (227) (246) (184) (164) (107)
Dividends from less
than 50% owned
affiliates 160 202 165 151 125
Fixed charges 1,421 1,495 1,537 1,716 1,736
Interest capitalized,
net of amortization 13 2 (1) (13) (3)
-------- -------- -------- -------- --------
Earnings available for
fixed charges $ 12,050 $ 10,800 $ 9,733 $ 7,886 $ 10,359
======== ======== ======== ======== ========
Fixed charges:
Interest incurred:
Consumer products $ 1,197 $ 1,281 $ 1,317 $ 1,502 $ 1,525
Financial services
and real estate 81 84 78 87 95
-------- -------- -------- -------- --------
1,278 1,365 1,395 1,589 1,620
Portion of rent expense
deemed to represent
interest factor 143 130 142 127 116
-------- -------- -------- -------- --------
Fixed charges $ 1,421 $ 1,495 $ 1,537 $ 1,716 $ 1,736
======== ======== ======== ======== ========
Ratio of earnings to
fixed charges 8.5 7.2 6.3 4.6 6.0
======== ======== ======== ======== ========