EX-12 3 pfe-12312016x10kexhibit12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Exhibit


EXHIBIT 12

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

 
 
Year Ended December 31,
(MILLIONS OF DOLLARS, EXCEPT RATIOS)
 
2016

 
2015

 
2014

 
2013

 
2012

 
 
 
 
 
 
 
 
 
 
 
Determination of earnings:
 
 
 
 
 
 
 
 
 
 
Income from continuing operations before provision for taxes on income, noncontrolling interests and cumulative effect of a change in accounting principles
 
$
8,351

 
$
8,965

 
$
12,240

 
$
15,716

 
$
11,242

Less:
 
 
 
 
 
 
 
 
 
 
Noncontrolling interests
 
44

 
39

 
47

 
43

 
47

Income attributable to Pfizer Inc.
 
8,307

 
8,925

 
12,192

 
15,673

 
11,195

Add (deduct):
 
 
 
 
 
 
 
 
 
 
Capitalized interest
 
(61
)
 
(32
)
 
(41
)
 
(32
)
 
(41
)
Amortization of capitalized interest
 
59

 
25

 
31

 
34

 
36

Equity (income)/loss from equity-method investments
 
(49
)
 
191

 
(24
)
 
(67
)
 
(105
)
Distributed income of equity method investments
 
119

 
161

 
136

 
162

 
85

Fixed charges
 
1,285

 
1,282

 
1,435

 
1,495

 
1,627

Total earnings as defined
 
$
9,661

 
$
10,554

 
$
13,729

 
$
17,265

 
$
12,796

 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
Interest expense(a)
 
$
1,186

 
$
1,199

 
$
1,360

 
$
1,414

 
$
1,522

Preferred stock dividends(b)
 
2

 
2

 
3

 
3

 
4

Rents(c)
 
97

 
81

 
72

 
78

 
101

Fixed charges
 
1,285

 
1,282

 
1,435

 
1,495

 
1,627

Capitalized interest
 
61

 
32

 
41

 
32

 
41

Total fixed charges
 
$
1,346

 
$
1,314

 
$
1,476

 
$
1,527

 
$
1,668

 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
 
7.2

 
8.0

 
9.3

 
11.3

 
7.7

(a)    Interest expense includes amortization of debt premium, discount and other debt costs. Interest expense does not include interest related to tax matters (primarily uncertain tax positions) of $242 million for 2016; $246 million for 2015; $182 million for 2014; $222 million for 2013; and $265 million for 2012.
(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.