Exhibit 12
PFIZER INC. AND SUBSIDIARY COMPANIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
| Year Ended December 31, | |||||||||||||||
| (in millions, except ratios) |
2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||
| Determination of earnings: |
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| Income from continuing operations before provision for taxes on income, minority interests and cumulative effect of a change in accounting principles |
$ | 9,694 | $ | 9,278 | $ | 13,028 | $ | 10,800 | $ | 13,403 | |||||
| Less: |
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| Minority interests |
23 | 42 | 12 | 12 | 7 | ||||||||||
| Income adjusted for minority interests |
9,671 | 9,236 | 13,016 | 10,788 | 13,396 | ||||||||||
| Add: |
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| Fixed charges |
647 | 541 | 642 | 622 | 505 | ||||||||||
| Total earnings as defined |
$ | 10,318 | $ | 9,777 | $ | 13,658 | $ | 11,410 | $ | 13,901 | |||||
| Fixed charges: |
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| Interest expense(a) |
$ | 516 | $ | 397 | $ | 488 | $ | 471 | $ | 347 | |||||
| Preferred stock dividends(b) |
8 | 11 | 14 | 14 | 12 | ||||||||||
| Rents(c) |
123 | 133 | 140 | 137 | 146 | ||||||||||
| Fixed charges |
647 | 541 | 642 | 622 | 505 | ||||||||||
| Capitalized interest |
46 | 43 | 29 | 17 | 12 | ||||||||||
| Total fixed charges |
$ | 693 | $ | 584 | $ | 671 | $ | 639 | $ | 517 | |||||
| Ratio of earnings to fixed charges |
14.9 | 16.7 | 20.4 | 17.9 | 26.9 | ||||||||||
All financial information reflects the following as discontinued operations for 2006, 2005 and 2004: the Consumer Healthcare business; certain European generics businesses; and for 2004: our in-vitro allergy and autoimmune diagnostics testing, and surgical ophthalmics.
| (a) |
Interest expense includes amortization of debt premium, discount and expenses. Interest expense does not include interest related to uncertain tax positions of $333 million for 2008; $331 million for 2007; $200 million for 2006; $203 million for 2005; and $201 million for 2004. |
| (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 in 2003. |
| (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. |