EX-12 3 ex12.htm EXHIBIT 12

Exhibit 12

ALTRIA GROUP, INC. AND SUBSIDIARIES
Computation of Ratios of Earnings to Fixed Charges
(in millions of dollars)
_________________

 

 

 

Six Months Ended
June 30, 2003

   

Three Months
Ended
June 30, 2003

 

Earnings before income taxes and minority interest

 

$

7,509

 

$

3,928

 

Add (deduct):

 

 

 

 

 

 

 

Equity in net earnings of less than 50% owned affiliates

 

 

(104

)

 

(61

)

Dividends from less than 50% owned affiliates

 

 

38

 

 

1

 

Fixed charges

 

 

812

 

 

399

 

Interest capitalized, net of amortization

 

 

 5

 

 

 2

 

 

 

 

 

Earnings available for fixed charges

 

$

8,260

 

$

4,269

 

 

 

 

 

Fixed charges:

 

 

 

 

 

 

 

Interest incurred:

 

 

 

 

 

 

 

Consumer products

 

$

652

 

$

320

 

Financial services

 

 

 54

 

 

 26

 

 

 

 

 

 

 

 

706

 

 

346

 

Portion of rent expense deemed to represent interest factor

 

 

 106

 

 

 53

 

 

 

 

 

Fixed charges

 

$

812

 

$

399

 

 

 

 

 

Ratio of earnings to fixed charges

 

 

10.2

 

 

10.7

 

 

 

 

 


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Exhibit 12

ALTRIA GROUP, INC. AND SUBSIDIARIES
Computation of Ratios of Earnings to Fixed Charges
(in millions of dollars)
_________________

 

 

 

For the Years Ended December 31,

 

 

 

 

 

 

2002

   

2001

   

2000

   

1999

   

1998

 

 

 

 

 

 

 

 

Earnings before income taxes, minority interest and cumulative effect of accounting change

 

$

18,098

 

$

14,284

 

$

14,087

 

$

12,821

 

$

9,215

 

Add (deduct):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in net earnings of less than 50% owned affiliates

 

 

(235

)

 

(228

)

 

(228

)

 

(197

)

 

(195

)

Dividends from less than 50% owned affiliates

 

 

32

 

 

29

 

 

70

 

 

56

 

 

70

 

Fixed charges

 

 

1,643

 

 

1,945

 

 

1,348

 

 

1,363

 

 

1,386

 

Interest capitalized, net of amortization

 

 

 10

 

 

 10

 

 

 7

 

 

(2

)

 

(5

)

 

 

 

 

 

 

 

Earnings available for fixed charges

 

$

19,548

 

$

16,040

 

$

15,284

 

$

14,041

 

$

10,471

 

 

 

 

 

 

 

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest incurred:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer products

 

$

1,331

 

$

1,665

 

$

1,087

 

$

1,118

 

$

1,166

 

Financial services

 

 

100

 

 

102

 

 

114

 

 

89

 

 

77

 

 

 

 

 

 

 

 

 

 

 

1,431

 

 

1,767

 

 

1,201

 

 

1,207

 

 

1,243

 

Portion of rent expense deemed to represent interest factor

 

 

212

 

 

178

 

 

147

 

 

156

 

 

 143

 

 

 

 

 

 

 

 

Fixed charges

 

$

1,643

 

$

1,945

 

$

1,348

 

$

1,363

 

$

1,386

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges (A)

 

 

11.9

 

 

 8.2

 

 

 11.3

 

 

10.3

 

 

 7.6

 

 

 

 

 

 

 

 

(A)

Earnings before income taxes and minority interest for the twelve months ended December 31, 2002 include a non-recurring pre-tax gain of $2,631 million related to the Miller transaction disclosed in Note 6 to Altria Group, Inc.’s condensed consolidated financial statements. Excluding this gain, the ratio of earnings to fixed charges would have been 10.3 for the twelve months ended December 31, 2002.


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