EX-12 11 dex12.htm STATEMENT REGARDING COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES Statement regarding computation of ratios of earnings to fixed charges

Exhibit 12

PHILIP MORRIS INTERNATIONAL INC. AND SUBSIDIARIES

Computation of Ratios of Earnings to Fixed Charges

(in millions of dollars)

 

 

 

     For the Years Ended December 31,  
     2008     2007(1)     2006(1)     2005(1)     2004(1)  

Earnings before income taxes and minority interest

   $ 9,937     $ 8,884     $ 8,208     $ 7,636     $ 6,505  

Add (deduct):

          

Equity in net loss (earnings) of less than 50% owned affiliates

     64       (100 )     (163 )     (176 )     (111 )

Dividends from less than 50% owned affiliates

     12       100       154       127       92  

Fixed charges

     618       359       446       407       254  

Interest capitalized, net of amortization

     (11 )     (8 )     (4 )     (12 )     (5 )
                                        

Earnings available for fixed charges

   $ 10,620     $ 9,235     $ 8,641     $ 7,982     $ 6,735  
                                        

Fixed charges:

          

Interest incurred

   $ 543     $ 280     $ 378     $ 340     $ 198  

Portion of rent expense deemed to represent interest factor

     75       79       68       67       56  
                                        

Fixed charges

   $ 618     $ 359     $ 446     $ 407     $ 254  
                                        

Ratio of earnings to fixed charges

     17.2       25.7       19.4       19.6       26.5  
                                        

 

(1)

Amounts for 2007, 2006, 2005 and 2004 have been revised to reflect the movement of certain subsidiaries to a December 31 closing date. The effect of this change for the years ended December 31, 2007, 2006, 2005 and 2004 was not material to our consolidated financial position, results of operations or cash flows.