EX-12 2 a2036458zex-12.txt EXHIBIT 12 EXHIBIT 12 PHILIP MORRIS COMPANIES INC. AND SUBSIDIARIES Computation of Ratio of Earnings to Fixed Charges (dollars in millions)
Years Ended December 31, ---------------------------------------------------------------- 2000 1999 1998 1997 1996 -------- -------- -------- -------- -------- Earnings before income taxes and cumulative effect of accounting changes $ 13,960 $ 12,695 $ 9,087 $ 10,611 $ 10,683 Add (Deduct): Equity in net earnings of less than 50% owned affiliates (228) (197) (195) (207) (227) Dividends from less than 50% owned affiliates 70 56 70 138 160 Fixed charges 1,348 1,363 1,386 1,438 1,421 Interest capitalized, net of amortization 7 (2) (5) (16) 13 -------- -------- -------- -------- -------- Earnings available for fixed charges $ 15,157 $ 13,915 $ 10,343 $ 11,964 $ 12,050 ======== ======== ======== ======== ======== Fixed charges: Interest incurred: Consumer products $ 1,087 $ 1,118 $ 1,166 $ 1,224 $ 1,197 Financial services and real estate 114 89 77 67 81 -------- -------- -------- -------- -------- $ 1,201 $ 1,207 $ 1,243 $ 1,291 $ 1,278 Portion of rent expense deemed to represent interest factor 147 156 143 147 143 -------- -------- -------- -------- -------- Fixed charges $ 1,348 $ 1,363 $ 1,386 $ 1,438 $ 1,421 ======== ======== ======== ======== ======== Ratio of earnings to fixed charges 11.2 10.2 7.5 8.3 8.5 ======== ======== ======== ======== ========