EX-12 2 a6090863ex12.htm EXHIBIT 12 a6090863ex12.htm
Exhibit 12
 
PFIZER INC. AND SUBSIDIARY COMPANIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

   
Nine
Months
Ended
Sept. 27,
    
Year Ended December 31,
  
(in millions, except ratios)
  
2009
    
2008
    
2007
    
2006
    
2005
    
2004
  
                                     
Determination of earnings:
                                    
Income from continuing operations
                                    
before provision for taxes on income,
noncontrolling interests and cumulative effect of a change in accounting principles
   $ 10,823     $ 9,694     $ 9,278     $ 13,028     $ 10,800     $ 13,403  
Less:
                                                
Noncontrolling interests
     9       23       42       12       12       7  
Income attributable to Pfizer Inc.
     10,814       9,671       9,236       13,016       10,788       13,396  
Add:
                                                
Fixed charges
     867       647       541       642       622       505  
Total earnings as defined
   $ 11,681     $ 10,318     $ 9,777     $ 13,658     $ 11,410     $ 13,901  
                                                 
Fixed charges:
                                                
Interest expense(a)
   $ 769     $ 516     $ 397     $ 488     $ 471     $ 347  
Preferred stock dividend(b)
     5       8       11       14       14       12  
Rents(c)
     93       123       133       140       137       146  
Fixed charges
     867       647       541       642       622       505  
Capitalized interest
     27       46       43       29       17       12  
                                                 
Total fixed charges
   $ 894     $ 693     $ 584     $ 671     $ 639     $ 517  
                                                 
Ratio of earnings to fixed charges
     13.1       14.9       16.7       20.4       17.9       26.9  

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

(a)
Interest expense includes amortization of debt premium, discount and expenses. Interest expense does not include interest related to uncertain tax positions of $232 million for the first nine months of 2009; $333 million for 2008; $331 million for 2007; $200 million for 2006; $203 million for 2005; and $201 million for 2004. Interest expense for the first nine months of 2009 includes the impact of our issuance of $13.5 billion of senior unsecured notes in March 2009 and our issuance of approximately $10.5 billion of senior unsecured notes in June 2009 primarily related to the acquisition of Wyeth.
(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.