EX-12 3 pfe-3302014x10qexhibit12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES PFE - 3/30/2014 - 10Q Exhibit 12


Exhibit 12

Pfizer Inc. and Subsidiary Companies
Computation of Ratio of Earnings to Fixed Charges


 
 
Three Months

 
 
 
 
 
 
 
 
 
 
 
 
 Ended

 
Year Ended December 31,
(MILLIONS OF DOLLARS, EXCEPT RATIO)
 
March 30,
2014

 
2013

 
2012

 
2011

 
2010

 
2009

 
 
 
 
 
 
 
 
 
 
 
 
 
Determination of Earnings:
 
 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations before provision for taxes on income, noncontrolling interests and cumulative effect of a change in accounting principles
 
$
2,847

 
$
15,716

 
$
11,242

 
$
11,481

 
$
8,846

 
$
10,421

Less:
 
 
 
 
 
 
 
 
 
 
 
 
Noncontrolling interests
 
13

 
44

 
47

 
60

 
46

 
15

Income attributable to Pfizer Inc.
 
2,834

 
15,672

 
11,195

 
11,421

 
8,800

 
10,406

Add (deduct):
 
 
 
 
 
 
 
 
 
 
 
 
Capitalized interest
 
(10
)
 
(32
)
 
(41
)
 
(50
)
 
(36
)
 
(34
)
Amortization of capitalized interest
 
10

 
65

 
69

 
95

 
29

 
29

Equity (income)/loss from equity method investments
 
(36
)
 
(55
)
 
(99
)
 
(82
)
 
(78
)
 
4

Distributed income of equity method investments
 
—

 
162

 
85

 
190

 
26

 
—

Fixed charges
 
341

 
1,495

 
1,627

 
1,812

 
1,930

 
1,358

Total earnings as defined
 
$
3,139

 
$
17,307

 
$
12,836

 
$
13,386

 
$
10,671

 
$
11,763

 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense(a)
 
$
321

 
$
1,414

 
$
1,522

 
$
1,681

 
$
1,797

 
$
1,232

Preferred stock dividends(b)
 
1

 
3

 
4

 
5

 
6

 
7

Rents(c)
 
19

 
78

 
101

 
126

 
127

 
119

Fixed charges
 
341

 
1,495

 
1,627

 
1,812

 
1,930

 
1,358

Capitalized interest
 
10

 
32

 
41

 
50

 
36

 
34

Total fixed charges
 
$
351

 
$
1,527

 
$
1,668

 
$
1,862

 
$
1,966

 
$
1,392

 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
 
8.9

 
11.3

 
7.7

 
7.2

 
5.4

 
8.5

(a) 
Interest expense includes amortization of debt premium, discount and other debt costs. Interest expense does not include interest related to uncertain tax positions of $43 million for the first three months of 2014; $222 million for the twelve months ended December 31, 2013; $265 million for 2012; $338 million for 2011; $389 million for 2010; and $337 million for 2009.
(b) 
Preferred stock dividends related to our Series A convertible perpetual preferred stock held by an Employee Stock Ownership Plan Trust.
(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.