EXHIBIT 12
PHILIP MORRIS COMPANIES INC. AND SUBSIDIARIES
Computation of Ratios of Earnings to Fixed Charges
(in millions of dollars)
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Three Months Ended
March 31, 1998
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Earnings before income taxes $2,319
Add (Deduct):
Equity in net earnings of less than 50% owned
affiliates (49)
Dividends from less than 50% owned
affiliates 28
Fixed charges 346
Interest capitalized, net of amortization (1)
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Earnings available for fixed charges $2,643
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Fixed charges:
Interest incurred:
Consumer products $ 290
Financial services 19
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309
Portion of rent expense deemed to represent
interest factor 37
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Fixed charges $ 346
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Ratio of earnings to fixed charges 7.6
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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,
-------------------------------------------------------
1997 1996 1995 1994 1993
-------- -------- -------- -------- -------
Earnings before income
taxes and cumulative
effect of accounting
changes $10,611 $10,683 $ 9,347 $ 8,216 $ 6,196
Add (Deduct):
Equity in net earnings
of less than 50%
owned affiliates (207) (227) (246) (184) (164)
Dividends from less
than 50% owned
affiliates 138 160 202 165 151
Fixed charges 1,438 1,421 1,495 1,537 1,716
Interest capitalized,
net of amortization (16) 13 2 (1) (13)
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Earnings available for
fixed charges $11,964 $12,050 $10,800 $ 9,733 $ 7,886
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Fixed charges:
Interest incurred:
Consumer products $ 1,224 $ 1,197 $ 1,281 $ 1,317 $ 1,502
Financial services
and real estate 67 81 84 78 87
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1,291 1,278 1,365 1,395 1,589
Portion of rent expense
deemed to represent
interest factor 147 143 130 142 127
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Fixed charges $ 1,438 $ 1,421 $ 1,495 $ 1,537 $ 1,716
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Ratio of earnings to
fixed charges 8.3 8.5 7.2 6.3 4.6
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