EX-12 2 pfe-9302012x10qexhibit12.htm EXHIBIT PFE - 9/30/2012 - 10Q Exhibit 12


Exhibit 12

PFIZER INC. AND SUBSIDIARY COMPANIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 
Nine Months
Ended
September 30,

 
Year Ended December 31,
(IN MILLIONS, EXCEPT RATIOS)
2012

 
2011

2010

2009

2008

2007

 
 
 
 
 
 
 
 
Determination of earnings:
 
 
 
 
 
 
 
Income from continuing operations before provision/(benefit) for taxes on income, noncontrolling interests and cumulative effect of a change in accounting principles
$
9,910

 
$
12,304

$
9,480

$
10,723

$
9,520

$
9,127

Less:
 
 
 
 
 
 
 
Net income attributable to noncontrolling interests
22

 
40

31

9

22

40

Income attributable to Pfizer Inc.
9,888

 
12,264

9,449

10,714

9,498

9,087

Add:
 
 
 
 
 
 
 
Fixed charges
1,249

 
1,813

1,930

1,358

647

541

Total earnings as defined
$
11,137

 
$
14,077

$
11,379

$
12,072

$
10,145

$
9,628

 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
Interest expense(a)
$
1,151

 
$
1,681

$
1,797

$
1,232

$
516

$
397

Preferred stock dividends(b)
3

 
5

6

7

8

11

Rents(c)
95

 
127

127

119

123

133

Fixed charges
1,249

 
1,813

1,930

1,358

647

541

Capitalized interest
29

 
50

36

34

46

43

 
 
 
 
 
 
 
 
Total fixed charges
$
1,278

 
$
1,863

$
1,966

$
1,392

$
693

$
584

 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
8.7

 
7.6

5.8

8.7

14.6

16.5

(a) 
Interest expense includes amortization of debt premium, discount and expenses. Interest expense does not include interest related to uncertain tax positions of $219 million for the first nine months of 2012; $343 million for 2011; $389 million for 2010; $337 million for 2009; $333 million for 2008; and $331 million for 2007.
(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.

All financial information before 2012 reflects Capsugel (the sale of which closed on August 1, 2011) as a discontinued operation. The financial information for the nine months ended September 30, 2012 and for the years ended December 31, 2011, 2010 and 2009 reflects the Nutrition business, which was acquired in 2009 and which the Company has agreed to sell, as a discontinued operation.