Exhibit 12
PFIZER INC. AND SUBSIDIARY COMPANIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
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Six
Months
Ended
July 3,
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Year Ended December 31,
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(in millions, except ratios)
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2011
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2010
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2009
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2008
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2007
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2006
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Determination of earnings:
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Income from continuing operations
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before provision for taxes on income,
noncontrolling interests and cumulative effect of a change in accounting principles
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$ | 6,800 | $ | 9,274 | $ | 10,668 | $ | 9,513 | $ | 9,120 | $ | 12,886 | ||||||||||||
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Less:
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Noncontrolling interests
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20 | 32 | 9 | 23 | 42 | 12 | ||||||||||||||||||
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Income attributable to Pfizer Inc.
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6,780 | 9,242 | 10,659 | 9,490 | 9,078 | $ | 12,874 | |||||||||||||||||
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Add:
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Fixed charges
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930 | 1,936 | 1,361 | 647 | 541 | 642 | ||||||||||||||||||
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Total earnings as defined
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$ | 7,710 | $ | 11,178 | $ | 12,020 | $ | 10,137 | $ | 9,619 | $ | 13,516 | ||||||||||||
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Fixed charges:
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Interest expense(a)
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$ | 862 | $ | 1,799 | $ | 1,233 | $ | 516 | $ | 397 | $ | 488 | ||||||||||||
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Preferred stock dividends(b)
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2 | 6 | 7 | 8 | 11 | 14 | ||||||||||||||||||
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Rents(c)
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66 | 131 | 121 | 123 | 133 | 140 | ||||||||||||||||||
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Fixed charges
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930 | 1,936 | 1,361 | 647 | 541 | 642 | ||||||||||||||||||
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Capitalized interest
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13 | 36 | 34 | 46 | 43 | 29 | ||||||||||||||||||
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Total fixed charges
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$ | 943 | $ | 1,972 | $ | 1,395 | $ | 693 | $ | 584 | $ | 671 | ||||||||||||
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Ratio of earnings to fixed charges
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8.2 | 5.7 | 8.6 | 14.6 | 16.5 | 20.1 | ||||||||||||||||||
All financial information reflects the following as discontinued operations: Capsugel (the sale of which closed on August 1, 2011), the Company’s former consumer healthcare business, and certain European generics businesses.
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(a)
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Interest expense includes amortization of debt premium, discount and expenses. Interest expense does not include interest related to uncertain tax positions of $155 million for the first six months of 2011; $384 million for 2010; $337 million for 2009; $333 million for 2008; $331 million for 2007; and $200 million for 2006.
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(b)
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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 in 2003.
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(c)
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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.
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