EX-12 2 c52104_ex12.htm

Exhibit 12

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

 
Year Ended December 31,
(in millions, except ratios)  
2007
 
 
  
2006
 
 
  
2005
 
 
  
2004
 
 
  
2003
 
Determination of Earnings:                                                      
Income from continuing operations before provision for                                      
   taxes on income, minority interests and cumulative                                      
   effect of a change in accounting principles
$
9,278    
$
13,028    
$
10,800     $ 13,403     $ 2,781  
Less:                                      
   Minority interests   42       12       12       7       1  
Income adjusted for minority interests   9,236       13,016       10,788       13,396       2,780  
Add:                                      
   Fixed charges   541       642       622       505       438  
Total earnings as defined
$
9,777    
$
13,658    
$
11,410    
$
13,901    
$
3,218  
Fixed charges:                                      
   Interest expense (a)
$
397    
$
488    
$
471     $ 347     $ 270  
   Preferred stock dividends (b)   11       14       14       12       10  
   Rents (c)   133       140       137       146       158  
          Fixed charges
  541       642       622       505       438  
   Capitalized interest   43       29       17       12       20  
Total fixed charges
$
584    
$
671    
$
639    
$
517    
$
458  
                                       
Ratio of earnings to fixed charges   16.7       20.4       17.9       26.9       7.0  

All financial information reflects the following as discontinued operations for all periods presented: the Consumer Healthcare business; for 2006, 2005, 2004 and 2003: certain European generics businesses; and for 2004 and 2003: our in-vitro allergy and autoimmune diagnostics testing, and surgical ophthalmics.

All financial information reflects the following as discontinued operations for 2003: our confectionery, shaving and fish-care products businesses, as well as the Estrostep, Loestrin and femhrt women's health product lines for all the years presented.

(a)          

Interest expense includes amortization of debt premium, discount and expenses. Interest expense does not include interest related to uncertain tax positions of $331 million for 2007; $200 million for 2006; $203 million for 2005; $201 million for 2004 and $180 million for 2003.
 
(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.
 
(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.