EX-12 4 dex12.txt COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Exhibit 12 PFIZER INC. AND SUBSIDIARY COMPANIES RATIO OF EARNINGS TO FIXED CHARGES
Six Months Ended June 30, Year Ended December 31, (millions of dollars, except ratios) 2002 2001 2000 1999 1998 1997 -------- ------ ------ ------ ------ ------ Determination of earnings: Income from continuing operations before provision for taxes on income, minority interests and cumulative effect of a change in accounting principle $5,633 $10,329 $5,781 $6,945 $4,397 $3,979 Less: Minority interests 1 16 14 5 2 10 ------ ------- ------ ------ ------ ------ Adjusted income 5,632 10,313 5,767 6,940 4,395 3,969 Fixed charges 163 366 496 463 334 389 ------ ------- ------ ------ ------ ------ Total earnings as defined $5,795 $10,679 $6,263 $7,403 $4,729 $4,358 ====== ======= ====== ====== ====== ====== Fixed charges: Interest expense (a) $ 113 $ 266 $ 390 $ 364 $ 251 $ 315 Rents (b) 50 100 106 99 83 74 ------ ------- ------ ------ ------ ------ Fixed charges 163 366 496 463 334 389 Capitalized interest 17 56 46 40 26 10 ------ ------- ------ ------ ------ ------ Total fixed charges $ 180 $ 422 $ 542 $ 503 $ 360 $ 399 ====== ======= ====== ====== ====== ====== Ratio of earnings to fixed charges 32.1 25.3 11.6 14.7 13.1 10.9 ====== ======= ====== ====== ====== ======
(a) Interest expense includes amortization of debt discount and expenses. (b) Rents included in the computation consist of one-third of rental expense which the Company believes to be a conservative estimate of an interest factor in its leases, which are not material.