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, 1999 June 30, 1999
---------------- ------------------
Earnings before income taxes $ 6,310 $ 3,355
Add (Deduct):
Equity in net earnings of less than 50% owned
affiliates (92) (52)
Dividends from less than 50% owned
affiliates 22 9
Fixed charges 675 356
Interest capitalized, net of amortization (4) (3)
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Earnings available for fixed charges $ 6,911 $ 3,665
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Fixed charges:
Interest incurred:
Consumer products $ 565 $ 302
Financial services 39 19
------- -------
604 321
Portion of rent expense deemed to represent
interest factor 71 35
------- -------
Fixed charges $ 675 $ 356
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Ratio of earnings to fixed charges 10.2 10.3
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PHILIP MORRIS COMPANIES INC. AND SUBSIDIARIES
Computation of Ratios of Earnings to Fixed Charges
(in millions of dollars)
Years Ended December 31,
--------------------------------------------------------
1998 1997 1996 1995 1994
-------- -------- -------- -------- --------
Earnings before income
taxes and cumulative
effect of accounting
changes $ 9,087 $ 10,611 $ 10,683 $ 9,347 $ 8,216
Add (Deduct):
Equity in net earnings
of less than 50%
owned affiliates (195) (207) (227) (246) (184)
Dividends from less
than 50% owned
affiliates 70 138 160 202 165
Fixed charges 1,386 1,438 1,421 1,495 1,537
Interest capitalized,
net of amortization (5) (16) 13 2 (1)
-------- -------- -------- -------- --------
Earnings available for
fixed charges $ 10,343 $ 11,964 $ 12,050 $ 10,800 $ 9,733
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Fixed charges:
Interest incurred:
Consumer products $ 1,166 $ 1,224 $ 1,197 $ 1,281 $ 1,317
Financial services 77 67 81 84 78
-------- -------- -------- -------- --------
1,243 1,291 1,278 1,365 1,395
Portion of rent expense
deemed to represent
interest factor 143 147 143 130 142
-------- -------- -------- -------- --------
Fixed charges $ 1,386 $ 1,438 $ 1,421 $ 1,495 $ 1,537
======== ======== ======== ======== ========
Ratio of earnings to
fixed charges 7.5 8.3 8.5 7.2 6.3
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