EX-12 3 ex12.htm EXHIBIT 12

Exhibit 12

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

 

 

 

Three Months
Ended
March 31, 2004

 

Earnings before income taxes and minority interest

 

$

3,428

 

 

 

 

 

 

Add (deduct):

 

 

 

 

Equity in net earnings of less than 50% owned affiliates

 

 

(45

)

Dividends from less than 50% owned affiliates

 

 

40

 

Fixed charges

 

 

446

 

Interest capitalized, net of amortization

 

 

 2

 

 

 

 

 

 

Earnings available for fixed charges

 

$

3,871

 

 

 

 

 

 

Fixed charges:

 

 

 

 

Interest incurred:

 

 

 

 

Consumer products

 

$

356

 

Financial services

 

 

 26

 

 

 

 

 

 

 

 

 

382

 

 

 

 

 

 

Portion of rent expense deemed to represent interest factor

 

 

 64

 

 

 

 

 

 

Fixed charges

 

$

446

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

 

8.7

 

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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,

 

 

 

2003

 

2002

 

2001

 

2000

 

1999

 

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

 

$

14,760

 

$

18,098

 

$

14,284

 

$

14,087

 

$

12,821

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add (deduct):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in net earnings of less than 50% owned affiliates

 

 

(205

)

 

(235

)

 

(228

)

 

(228

)

 

(197

)

Dividends from less than 50% owned affiliates

 

 

45

 

 

32

 

 

29

 

 

70

 

 

56

 

Fixed charges

 

 

1,731

 

 

1,643

 

 

1,945

 

 

1,348

 

 

1,363

 

Interest capitalized, net of amortization

 

 

 10

 

 

 10

 

 

 10

 

 

 7

 

 

(2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings available for fixed charges

 

$

16,341

 

$

19,548

 

$

16,040

 

$

15,284

 

$

14,041

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest incurred:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer products

 

$

1,370

 

$

1,331

 

$

1,665

 

$

1,087

 

$

1,118

 

Financial services

 

 

105

 

 

100

 

 

102

 

 

114

 

 

89

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,475

 

 

1,431

 

 

1,767

 

 

1,201

 

 

1,207

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Portion of rent expense deemed to represent interest factor

 

 

256

 

 

212

 

 

178

 

 

147

 

 

156

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges

 

$

1,731

 

$

1,643

 

$

1,945

 

$

1,348

 

$

1,363

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges (A)

 

 

9.4

 

 

11.9

 

 

 8.2

 

 

 11.3

 

 

10.3

 

(A)

Earnings before income taxes and minority interest for the year ended December 31, 2002 include a non-recurring pre-tax gain of $2,631 million related to the Miller Brewing Company transaction. Excluding this gain, the ratio of earnings to fixed charges would have been 10.3 for the year ended December 31, 2002.


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