EX-12 2 pfe-3292015x10qexhibit12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES PFE - 3/29/2015 - 10Q Exhibit 12


Exhibit 12

Pfizer Inc. and Subsidiary Companies
Computation of Ratio of Earnings to Fixed Charges


 
 
Three Months Ended

 
Year Ended December 31,
(MILLIONS OF DOLLARS, EXCEPT RATIOS)
 
March 29,
2015

 
2014

 
2013

 
2012

 
2011

 
2010

 
 
 
 
 
 
 
 
 
 
 
 
 
Determination of earnings:
 
 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations before provision for taxes on income, noncontrolling interests and cumulative effect of a change in accounting principles
 
$
3,082

 
$
12,240

 
$
15,716

 
$
11,242

 
$
11,481

 
$
8,846

Less:
 
 
 
 
 
 
 
 
 
 
 
 
Noncontrolling interests
 
9

 
47

 
44

 
47

 
60

 
46

Income attributable to Pfizer Inc.
 
3,073

 
12,193

 
15,672

 
11,195

 
11,421

 
8,800

Add (deduct):
 
 
 
 
 
 
 
 
 
 
 
 
Capitalized interest
 
(2
)
 
(41
)
 
(32
)
 
(41
)
 
(50
)
 
(36
)
Amortization of capitalized interest
 
1

 
54

 
65

 
69

 
95

 
29

Equity (income)/loss from equity-method investments
 
(11
)
 
(4
)
 
(55
)
 
(99
)
 
(82
)
 
(78
)
Distributed income of equity method investments
 
1

 
136

 
162

 
85

 
190

 
26

Fixed charges
 
328

 
1,435

 
1,495

 
1,627

 
1,812

 
1,930

Total earnings as defined
 
3,389

 
$
13,772

 
$
17,307

 
$
12,836

 
$
13,386

 
$
10,671

 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense(a)
 
$
309

 
$
1,360

 
$
1,414

 
$
1,522

 
$
1,681

 
$
1,797

Preferred stock dividends(b)
 
1

 
3

 
3

 
4

 
5

 
6

Rents(c)
 
18

 
72

 
78

 
101

 
126

 
127

Fixed charges
 
328

 
1,435

 
1,495

 
1,627

 
1,812

 
1,930

Capitalized interest
 
2

 
41

 
32

 
41

 
50

 
36

Total fixed charges
 
$
330

 
$
1,476

 
$
1,527

 
$
1,668

 
$
1,862

 
$
1,966

 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
 
10.3

 
9.3

 
11.3

 
7.7

 
7.2

 
5.4

(a) 
Interest expense includes amortization of debt premium, discount and other debt costs. Interest expense does not include interest related to uncertain tax positions of $73 million for the first three months of 2015; $182 million for 2014; $222 million for 2013; $265 million for 2012; $338 million for 2011; and $389 million for 2010.
(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.