EX-12 2 a50063064ex12.htm EXHIBIT 12 a50063064ex12.htm
Exhibit 12

PFIZER INC. AND SUBSIDIARY COMPANIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

   
Nine
Months
Ended
Oct. 2,
    
Year Ended December 31,
  
(in millions, except ratios)
  
2011
    
2010
    
2009
    
2008
    
2007
    
2006
  
                                     
Determination of earnings:
                                    
Income from continuing operations
                                    
before provision for taxes on income,
noncontrolling interests and
cumulative effect of a change in
accounting principles
   $ 10,469     $ 9,274     $ 10,668     $ 9,513     $ 9,120     $ 12,886  
Less:
                                                
Noncontrolling interests
     31       32       9       23       42       12  
Income attributable to Pfizer Inc.
     10,438       9,242       10,659       9,490       9,078     $ 12,874  
Add:
                                                
Fixed charges
     1,387       1,936       1,361       647       541       642  
Total earnings as defined
   $ 11,825     $ 11,178     $ 12,020     $ 10,137     $ 9,619     $ 13,516  
                                                 
Fixed charges:
                                                
Interest expense(a)
   $ 1,285     $ 1,799     $ 1,233     $  516     $ 397     $ 488  
Preferred stock dividends(b)
     4       6       7       8       11       14  
Rents(c)
     98       131       121       123       133       140  
Fixed charges
     1,387       1,936       1,361       647       541       642  
Capitalized interest
     17       36       34       46       43       29  
                                                 
Total fixed charges
   $ 1,404     $ 1,972     $ 1,395     $  693     $ 584     $ 671  
                                                 
Ratio of earnings to fixed charges
     8.4       5.7       8.6       14.6       16.5       20.1  

All financial information reflects the following as discontinued operations: Capsugel (the sale of which closed on August 1, 2011), the Company’s former consumer healthcare business, and certain European generics businesses.

(a)
Interest expense includes amortization of debt premium, discount and expenses. Interest expense does not include interest related to uncertain tax positions of $240 million for the first nine months of 2011; $384 million for 2010; $337 million for 2009; $333 million for 2008; $331 million for 2007; and $200 million for 2006.
(b)
Preferred stock dividends are from our Series A convertible perpetual preferred stock held by an Employee Stock Ownership Plan assumed in connection with our acquisition of Pharmacia in 2003.
(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.