EX-12 2 a2016q310-qex12.htm EXHIBIT 12 Exhibit


Exhibit 12

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

 
 
Nine Months

 
 
 
 
 
 
 
 
 
 
 
Ended

 
 
 
 
 
 
 
 
 
 
 
October 2,

 
Year Ended December 31,
(IN MILLIONS, EXCEPT RATIOS)
 
2016

 
2015

 
2014

 
2013

 
2012

2011

Determination of earnings:
 
 
 
 
 
 
 
 
 
 
 
 Income before provision for taxes on income
 
 
 
 
 
 
 
 
 
 
 
and noncontrolling interests
 
$
997

 
$
545

 
$
820

 
$
690

 
$
710

$
394

 Less: Net income/(loss) attributable to noncontrolling interests
 
(2
)
 
—

 
4

 
(1
)
 
—

3

Income attributable to Zoetis Inc.
 
999

 
545

 
816

 
691

 
710

391

Add: fixed charges
 
133

 
137

 
131

 
127

 
37

43

Total earnings as defined
 
$
1,132

 
$
682

 
$
947

 
$
818

 
$
747

$
434

 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
 Interest expense, net of capitalized interest(a)
 
$
125

 
$
124

 
$
117

 
$
113

 
$
31

$
36

 Capitalized interest
 
2

 
4

 
4

 
3

 
—

—

 Interest portion of rent expense(b)
 
6

 
9

 
10

 
11

 
6

7

Fixed charges
 
$
133

 
$
137

 
$
131

 
$
127

 
$
37

$
43

 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earning to fixed charges
 
8.5

 
5.0

 
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.