EX-12 2 pfe-9272015x10qexhibit12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES 10-Q


Exhibit 12

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


 
 
Nine Months Ended

 
Year Ended December 31,
(MILLIONS OF DOLLARS, EXCEPT RATIOS)
 
September 27,
2015

 
2014

 
2013

 
2012

 
2011

 
2010

 
 
 
 
 
 
 
 
 
 
 
 
 
Determination of earnings:
 
 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations before provision for taxes on income, noncontrolling interests and cumulative effect of a change in accounting principles
 
$
9,319

 
$
12,240

 
$
15,716

 
$
11,242

 
$
11,481

 
$
8,846

Less:
 
 
 
 
 
 
 
 
 
 
 
 
Noncontrolling interests
 
34

 
47

 
43

 
47

 
60

 
46

Income attributable to Pfizer Inc.
 
9,284

 
12,192

 
15,673

 
11,195

 
11,421

 
8,800

Add (deduct):
 
 
 
 
 
 
 
 
 
 
 
 
Capitalized interest
 
(19
)
 
(41
)
 
(32
)
 
(41
)
 
(50
)
 
(36
)
Amortization of capitalized interest
 
17

 
31

 
34

 
36

 
22

 
29

Equity (income)/loss from equity-method investments
 
118

 
(24
)
 
(67
)
 
(105
)
 
(83
)
 
(78
)
Distributed income of equity method investments
 
161

 
136

 
162

 
85

 
190

 
26

Fixed charges
 
921

 
1,435

 
1,495

 
1,627

 
1,812

 
1,930

Total earnings as defined
 
10,482

 
13,729

 
$
17,265

 
$
12,796

 
$
13,311

 
$
10,672

 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense(a)
 
$
864

 
$
1,360

 
$
1,414

 
$
1,522

 
$
1,681

 
$
1,797

Preferred stock dividends(b)
 
2

 
3

 
3

 
4

 
5

 
6

Rents(c)
 
54

 
72

 
78

 
101

 
126

 
127

Fixed charges
 
921

 
1,435

 
1,495

 
1,627

 
1,812

 
1,930

Capitalized interest
 
19

 
41

 
32

 
41

 
50

 
36

Total fixed charges
 
$
940

 
$
1,476

 
$
1,527

 
$
1,668

 
$
1,862

 
$
1,966

 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
 
11.2

 
9.3

 
11.3

 
7.7

 
7.2

 
5.4

(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 $186 million for the first nine months of 2015; $182 million for 2014; $222 million for 2013; $265 million for 2012; $338 million for 2011; and $389 million for 2010.
(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.
Amounts may not add due to rounding. Percentages have been calculated using unrounded amounts.