EX-12.1 3 d856411dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

Exhibit 12.1

PFIZER INC. AND SUBSIDIARY COMPANIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

     Year Ended December 31,  

(MILLIONS OF DOLLARS, EXCEPT RATIOS)

    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

    $ 12,240      $ 15,716      $ 11,242      $ 11,481      $ 8,846   

Less:

           

Noncontrolling interests

      47        44        47        60        46   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income attributable to Pfizer Inc.

   12,193      15,672      11,195      11,421      8,800   

Add (deduct):

Capitalized interest

   (41 )    (32 )    (41 )    (50 )    (36 ) 

Amortization of capitalized interest

   54      65      69      95      29   

Equity (income)/loss from equity-method investments

   (4 )    (55 )    (99 )    (82 )    (78 ) 

Distributed income of equity method investments

   136      162      85      190      26   

Fixed charges

   1,435      1,495      1,627      1,812      1,930   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total earnings as defined

 $ 13,772    $ 17,307    $ 12,836    $ 13,386    $ 10,671   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed charges:

Interest expense(a)

 $ 1,360    $ 1,414    $ 1,522    $ 1,681    $ 1,797   

Preferred stock dividends(b)

   3      3      4      5      6   

Rents(c)

   72      78      101      126      127   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed charges

   1,435      1,495      1,627      1,812      1,930   

Capitalized interest

   41      32      41      50      36   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed charges

 $ 1,476    $ 1,527    $ 1,668    $ 1,862    $ 1,966   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings to fixed charges

   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 $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.