Exhibit 12
PFIZER INC AND SUBSIDIARY COMPANIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
| Year Ended December 31, | ||||||||||||||||||||
| (in millions, except ratios) | 2004 | 2003 | 2002 | 2001 | 2000 | |||||||||||||||
Determination of Earnings: |
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Income from continuing operations before
provision for
taxes on income, minority interests and
cumulative
effect of change in accounting principles |
$ | 14,007 | $ | 3,246 | $ | 11,766 | $ | 9,963 | $ | 5,471 | ||||||||||
Less: |
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Minority interests |
10 | 3 | 6 | 14 | 13 | |||||||||||||||
Income adjusted for minority interests |
13,997 | 3,243 | 11,760 | 9,949 | 5,458 | |||||||||||||||
Add: |
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Fixed charges |
595 | 491 | 365 | 359 | 478 | |||||||||||||||
Total earnings as defined |
$ | 14,592 | $ | 3,734 | $ | 12,125 | $ | 10,308 | $ | 5,936 | ||||||||||
Fixed charges: |
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Interest expense (a) |
$ | 347 | $ | 270 | $ | 251 | $ | 266 | $ | 381 | ||||||||||
Preferred stock dividends (b) |
12 | 10 | — | — | — | |||||||||||||||
Rents (c) |
236 | 211 | 114 | 93 | 97 | |||||||||||||||
Fixed charges |
595 | 491 | 365 | 359 | 478 | |||||||||||||||
Capitalized interest |
12 | 20 | 28 | 56 | 46 | |||||||||||||||
Total fixed charges |
$ | 607 | $ | 511 | $ | 393 | $ | 415 | $ | 524 | ||||||||||
Ratio of earnings to fixed charges |
24.0 | 7.3 | 30.9 | 24.8 | 11.3 | |||||||||||||||
All financial information
reflects the following as discontinued operations for 2004 and 2003: our in-vitro allergy and autoimmune
diagnostics testing, surgical ophthalmics and certain European generics businesses as well as, for 2004, 2003, 2002, 2001 and 2000
certain non-core consumer healthcare product lines (primarily marketed in
Europe).
All financial information reflects the following as discontinued operations for 2003, 2002, 2001 and 2000: our confectionery, shaving and fish-care products businesses as well as the Estrostep, Loestrin and femhrt women’s health product lines.
| (a) | Interest expense includes amortization of debt premium, discount and expenses. | |||
| (b) | Preferred stock dividends are from our Series A convertible perpetual preferred stock held by an Employee Stock Ownership Plan assumed in connection with our acquisition of Pharmacia. | |||
| (c) | Rents included in the computation consist of one-third of rental expense which we believe to be a conservative estimate of an interest factor in our leases, which are not material. | |||