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PFIZER INC

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Computation of Ratio of Earnings to Fixed Charges

Exhibit 12

PFIZER INC. AND SUBSIDIARY COMPANIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

(millions, except ratios)

    Year Ended December 31,
   2009    2008    2007    2006    2005

Determination of Earnings:

               

Income from continuing operations before provision for taxes on income, minority interests and cumulative effect of a change in accounting principles

    $ 10,827    $ 9,694    $ 9,278    $ 13,028    $ 10,800

Less:

               

Minority interests

      9      23      42      12      12
                                  

Income adjusted for minority interests

      10,818      9,671      9,236      13,016      10,788

Add:

               

Fixed charges

      1,361      647      541      642      622
                                  

Total earnings as defined

    $ 12,179    $ 10,318    $ 9,777    $ 13,658    $ 11,410
                                  

Fixed charges:

               

Interest expense (a)

    $ 1,233    $ 516    $ 397    $ 488    $ 471

Preferred stock dividends (b)

      7      8      11      14      14

Rents (c)

      121      123      133      140      137

Fixed charges

      1,361      647      541      642      622

Capitalized interest

      34      46      43      29      17
                                  

Total fixed charges

    $ 1,395    $ 693    $ 584    $ 671    $ 639
                                  

Ratio of earnings to fixed charges

      8.7      14.9      16.7      20.4      17.9

 

(a)

Interest expense includes amortization of debt premium, discount and expenses. Interest expense does not include interest related to uncertain tax positions of $362 million for 2009; $333 million for 2008; $331 million for 2007; $200 million for 2006 and $203 million for 2005.

 

(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.