EX-12 4 ex12.htm EXHIBIT 12

Exhibit 12

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


 

 

Nine Months
Ended
September 30, 2003

 

Three Months
Ended
September 30, 2003

 

 

 

 

 

Earnings before income taxes and minority interest

 

$

11,431

 

$

3,922

 

 

 

 

 

 

 

 

 

Add (deduct):

 

 

 

 

 

 

 

Equity in net earnings of less than 50% owned affiliates

 

 

(151

)

 

(47

)

Dividends from less than 50% owned affiliates

 

 

40

 

 

2

 

Fixed charges

 

 

1,254

 

 

442

 

Interest capitalized, net of amortization

 

 

7

 

 

2

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings available for fixed charges

 

$

12,581

 

$

4,321

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges:

 

 

 

 

 

 

 

Interest incurred:

 

 

 

 

 

 

 

Consumer products

 

$

1,015

 

$

363

 

Financial services

 

 

80

 

 

26

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,095

 

 

389

 

 

 

 

 

 

 

 

 

Portion of rent expense deemed to represent interest factor

 

 

159

 

 

53

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges

 

$

1,254

 

$

442

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

 

10.0

 

 

9.8

 

 

 

 

 

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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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