EX-12 2 zoetis-2015329xex12q1.htm EXHIBIT 12 Zoetis-2015.3.29-EX12 Q1


Exhibit 12

ZOETIS INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES(a) 

 
 
Three Months

 
 
 
 
 
 
 
 
 
 
Ended

 
 
 
 
 
 
 
 
 
 
March 29,

 
Year Ended December 31,
(IN MILLIONS, EXCEPT RATIOS)
 
2015

 
2014

 
2013

 
2012

 
2011

Determination of earnings:
 
 
 
 
 
 
 
 
 
 
 Income before provision for taxes on income
 
 
 
 
 
 
 
 
 
 
and noncontrolling interests
 
$
230

 
$
820

 
$
690

 
$
710

 
$
394

 Less: Net income/(loss) attributable to noncontrolling interests
 
—

 
4

 
(1
)
 
—

 
3

Income attributable to Zoetis Inc.
 
230

 
816

 
691

 
710

 
391

Add: fixed charges
 
31

 
131

 
127

 
37

 
43

Total earnings as defined
 
$
261

 
$
947

 
$
818

 
$
747

 
$
434

 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 Interest expense, net of capitalized interest(a)
 
$
28

 
$
117

 
$
113

 
$
31

 
$
36

 Capitalized interest
 
1

 
4

 
3

 
—

 
—

 Interest portion of rent expense(b)
 
2

 
10

 
11

 
6

 
7

Fixed charges
 
31

 
131

 
127

 
37

 
43

 
 
 
 
 
 
 
 
 
 
 
Ratio of earning to fixed charges
 
8.4

 
7.2

 
6.4

 
20.2

 
10.1

(a) 
Interest expense includes amortization of debt discount and fees. Interest expense does not include interest related to uncertain tax positions.
(b) 
One-third of all rental expense is deemed to be interest, which we believe to be a conservative estimate of an interest factor in our leases.