EX-12 3 a2018q310qex12.htm EXHIBIT 12 Exhibit


Exhibit 12

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

 
 
Nine Months Ended

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30,

 
Year Ended December 31,
(IN MILLIONS, EXCEPT RATIOS)
 
2018

 
2017

 
2016

 
2015

 
2014

2013

Determination of earnings:
 
 
 
 
 
 
 
 
 
 
 
 Income before provision for taxes on income
 
 
 
 
 
 
 
 
 
 
 
and noncontrolling interests
 
$
1,272

 
$
1,525

 
$
1,228

 
$
545

 
$
820

$
690

 Less: Net income/(loss) attributable to noncontrolling interests
 
(4
)
 
(2
)
 
(2
)
 
—

 
4

(1
)
Income attributable to Zoetis Inc.
 
1,276

 
1,527

 
1,230

 
545

 
816

691

Add: fixed charges
 
160

 
188

 
177

 
137

 
131

127

Total earnings as defined
 
$
1,436

 
$
1,715

 
$
1,407

 
$
682

 
$
947

$
818

 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
 Interest expense, net of capitalized interest(a)
 
$
147

 
$
175

 
$
166

 
$
124

 
$
117

$
113

 Capitalized interest
 
6

 
4

 
3

 
4

 
4

3

 Interest portion of rent expense(b)
 
7

 
9

 
8

 
9

 
10

11

Fixed charges
 
$
160

 
$
188

 
$
177

 
$
137

 
$
131

$
127

 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
 
9.0

 
9.1

 
7.9

 
5.0

 
7.2

6.4

(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.