EX-12 4 pfe-10012017x10qexhibit12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
EXHIBIT 12
Pfizer Inc. and Subsidiary Companies
Computation of Ratio of Earnings to Fixed Charges

|  | Nine Months Ended |  |  | Year Ended December 31,
(MILLIONS OF DOLLARS, EXCEPT RATIOS) |  | October 1, 2017 |  |  | 2016 |  |  | 2015 |  |  | 2014 |  |  | 2013 |  |  | 2012 |
Determination of earnings: |  |  |  |  |  |  |  |  |  |  |  |
Income from continuing operations before provision for taxes on income, noncontrolling interests and cumulative effect of a change in accounting principles |  | $ | 11,351 |  |  | $ | 8,351 |  |  | $ | 8,965 |  |  | $ | 12,240 |  |  | $ | 15,716 |  |  | $ | 11,242 |
Less: |  |  |  |  |  |  |  |  |  |  |  |
Noncontrolling interests |  | 43 |  |  | 44 |  |  | 39 |  |  | 47 |  |  | 43 |  |  | 47 |
Income attributable to Pfizer Inc. |  | 11,308 |  |  | 8,307 |  |  | 8,925 |  |  | 12,192 |  |  | 15,673 |  |  | 11,195 |
Add (deduct): |  |  |  |  |  |  |  |  |  |  |  |
Capitalized interest |  | (55 | ) |  | (61 | ) |  | (32 | ) |  | (41 | ) |  | (32 | ) |  | (41 | )
Amortization of capitalized interest |  | 40 |  |  | 59 |  |  | 25 |  |  | 31 |  |  | 34 |  |  | 36 |
Equity (income)/loss from equity-method investments |  | (214 | ) |  | (49 | ) |  | 191 |  |  | (24 | ) |  | (67 | ) |  | (105 | )
Distributed income of equity method investments |  | 211 |  |  | 119 |  |  | 161 |  |  | 136 |  |  | 162 |  |  | 85 |
Fixed charges |  | 1,015 |  |  | 1,285 |  |  | 1,282 |  |  | 1,435 |  |  | 1,495 |  |  | 1,627 |
Total earnings as defined |  | $ | 12,305 |  |  | $ | 9,661 |  |  | $ | 10,554 |  |  | $ | 13,729 |  |  | $ | 17,265 |  |  | $ | 12,796 |
Fixed charges: |  |  |  |  |  |  |  |  |  |  |  |
Interest expense(a) |  | $ | 940 |  |  | $ | 1,186 |  |  | $ | 1,199 |  |  | $ | 1,360 |  |  | $ | 1,414 |  |  | $ | 1,522 |
Preferred stock dividends(b) |  | 1 |  |  | 2 |  |  | 2 |  |  | 3 |  |  | 3 |  |  | 4 |
Rents(c) |  | 73 |  |  | 97 |  |  | 81 |  |  | 72 |  |  | 78 |  |  | 101 |
Fixed charges |  | 1,015 |  |  | 1,285 |  |  | 1,282 |  |  | 1,435 |  |  | 1,495 |  |  | 1,627 |
Capitalized interest |  | 55 |  |  | 61 |  |  | 32 |  |  | 41 |  |  | 32 |  |  | 41 |
Total fixed charges |  | $ | 1,070 |  |  | $ | 1,346 |  |  | $ | 1,314 |  |  | $ | 1,476 |  |  | $ | 1,527 |  |  | $ | 1,668 |
Ratio of earnings to fixed charges |  | 11.5 |  |  | 7.2 |  |  | 8.0 |  |  | 9.3 |  |  | 11.3 |  |  | 7.7 |

(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 $196 million for the first nine months of 2017; $242 million for 2016; $246 million for 2015; $182 million for 2014; $222 million for 2013; and $265 million for 2012.

(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.