EX-12 4 0004.txt COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES EXHIBIT 12 PHILIP MORRIS COMPANIES INC. AND SUBSIDIARIES Computation of Ratios of Earnings to Fixed Charges (in millions of dollars) ------------------- Six Months Ended Three Months Ended June 30, 2000 June 30, 2000 ---------------- ------------------ Earnings before income taxes $ 6,852 $ 3,559 Add (Deduct): Equity in net earnings of less than 50% owned affiliates (127) (66) Dividends from less than 50% owned affiliates 56 31 Fixed charges 639 319 Interest capitalized, net of amortization 4 3 ------- ------- Earnings available for fixed charges $ 7,424 $ 3,846 ======= ======= Fixed charges: Interest incurred: Consumer products $ 508 $ 252 Financial services 53 28 ------- ------- 561 280 Portion of rent expense deemed to represent interest factor 78 39 ------- ------- Fixed charges $ 639 $ 319 ======= ======= Ratio of earnings to fixed charges 11.6 12.1 ======= ======= EXHIBIT 12 PHILIP MORRIS COMPANIES INC. AND SUBSIDIARIES Computation of Ratios of Earnings to Fixed Charges (in millions of dollars) ------------------
Years Ended December 31, -------------------------------------------------------- 1999 1998 1997 1996 1995 -------- -------- -------- -------- -------- Earnings before income taxes and cumulative effect of accounting changes $ 12,695 $ 9,087 $ 10,611 $ 10,683 $ 9,347 Add (Deduct): Equity in net earnings of less than 50% owned affiliates (197) (195) (207) (227) (246) Dividends from less than 50% owned affiliates 56 70 138 160 202 Fixed charges 1,363 1,386 1,438 1,421 1,495 Interest capitalized, net of amortization (2) (5) (16) 13 2 -------- -------- -------- -------- -------- Earnings available for fixed charges $ 13,915 $ 10,343 $ 11,964 $ 12,050 $ 10,800 ======== ======== ======== ======== ======== Fixed charges: Interest incurred: Consumer products $ 1,118 $ 1,166 $ 1,224 $ 1,197 $ 1,281 Financial services 89 77 67 81 84 -------- -------- -------- -------- -------- 1,207 1,243 1,291 1,278 1,365 Portion of rent expense deemed to represent interest factor 156 143 147 143 130 -------- -------- -------- -------- -------- Fixed charges $ 1,363 $ 1,386 $ 1,438 $ 1,421 $ 1,495 ======== ======== ======== ======== ======== Ratio of earnings to fixed charges 10.2 7.5 8.3 8.5 7.2 ======== ======== ======== ======== ========