EX-12 7 pfe-exhibit12x12312017.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)
 
2017
 
2016

 
2015

 
2014

 
2013

 
 
 
 
 
 
 
 
 
 
 
Determination of earnings:
 
 
 
 
 
 
 
 
 
 
Income from continuing operations before provision for taxes on income, noncontrolling interests and cumulative effect of a change in accounting principles
 
$
12,305

 
$
8,351

 
$
8,965

 
$
12,240

 
$
15,716

Less:
 
 
 
 
 
 
 
 
 
 
Noncontrolling interests
 
57

 
44

 
39

 
47

 
43

Income attributable to Pfizer Inc.
 
12,248

 
8,307

 
8,925

 
12,192

 
15,673

Add (deduct):
 
 
 
 
 
 
 
 
 
 
Capitalized interest
 
(72
)
 
(61
)
 
(32
)
 
(41
)
 
(32
)
Amortization of capitalized interest
 
41

 
59

 
25

 
31

 
34

Equity (income)/loss from equity-method investments
 
(274
)
 
(49
)
 
191

 
(24
)
 
(67
)
Distributed income of equity-method investments
 
269

 
119

 
161

 
136

 
162

Fixed charges
 
1,376

 
1,285

 
1,282

 
1,435

 
1,495

Total earnings as defined
 
$
13,588

 
$
9,661

 
$
10,554

 
$
13,729

 
$
17,265

 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
Interest expense(a)
 
$
1,270

 
$
1,186

 
$
1,199

 
$
1,360

 
$
1,414

Preferred stock dividends(b)
 
2

 
2

 
2

 
3

 
3

Rents(c)
 
105

 
97

 
81

 
72

 
78

Fixed charges
 
1,376

 
1,285

 
1,282

 
1,435

 
1,495

Capitalized interest
 
72

 
61

 
32

 
41

 
32

Total fixed charges
 
$
1,448

 
$
1,346

 
$
1,314

 
$
1,476

 
$
1,527

 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
 
9.4

 
7.2

 
8.0

 
9.3

 
11.3

(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 $271 million for 2017; $242 million for 2016; $246 million for 2015; $182 million for 2014; and $222 million for 2013.
(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.