EX-12.1 4 d511637dex121.htm EX-12.1 EX-12.1

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)

    2017     2016     2015     2014     2013  

Determination of earnings:

           

Income from continuing operations before provision for taxes on income, noncontrolling interests and cumulative effect of a change in accounting principles

    $ 12,305     $ 8,351     $ 8,965     $ 12,240     $ 15,716  

Less:

           

Noncontrolling interests

      57       44       39       47       43  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income attributable to Pfizer Inc.

      12,248       8,307       8,925       12,192       15,673  

Add (deduct):

           

Capitalized interest

      (72 )      (61 )      (32 )      (41 )      (32 ) 

Amortization of capitalized interest

      41       59       25       31       34  

Equity (income)/loss from equity-method investments

      (274 )      (49 )      191       (24 )      (67 ) 

Distributed income of equity-method investments

      269       119       161       136       162  

Fixed charges

      1,376       1,285       1,282       1,435       1,495  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total earnings as defined

    $ 13,588     $ 9,661     $ 10,554     $ 13,729     $ 17,265  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed charges:

           

Interest expense(a)

    $ 1,270     $ 1,186     $ 1,199     $ 1,360     $ 1,414  

Preferred stock dividends(b)

      2       2       2       3       3  

Rents(c)

      105       97       81       72       78  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed charges

      1,376       1,285       1,282       1,435       1,495  

Capitalized interest

      72       61       32       41       32  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed charges

    $ 1,448     $ 1,346     $ 1,314     $ 1,476     $ 1,527  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings to fixed charges

      9.4       7.2       8.0       9.3       11.3  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a)  Interest expense includes amortization of debt premium, discount and other debt costs. Interest expense does not include interest related to tax matters (primarily uncertain tax positions) of $271 million for 2017; $242 million for 2016; $246 million for 2015; $182 million for 2014; and $222 million for 2013.
(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.

Amounts may not add due to rounding. Percentages have been calculated using unrounded amounts.