EX-12 4 y06457exv12.htm EX-12-STATEMENTS RE: COMPUTATION OF RATIOS EX-12
 

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,  
    2004     2003     2002     2001     2000  
Earnings from continuing operations before income taxes, minority interest and cumulative effect of accounting change
   $ 14,004     $ 14,609     $ 17,945     $ 14,117     $ 14,008  
 
                                        
Add (deduct):
                                        
Equity in net earnings of less than 50% owned affiliates
     (141 )     (205 )     (235 )     (228 )     (228 )
Dividends from less than 50% owned affiliates
     52       45       32       29       70  
Fixed charges
     1,787       1,730       1,678       1,984       1,348  
Interest capitalized, net of amortization
             10       10       10       7  
 
                              
 
                                        
Earnings available for fixed charges
   $ 15,702     $ 16,189     $ 19,430     $ 15,912     $ 15,205  
 
                              
 
                                        
Fixed charges:
                                        
Interest incurred:
                                        
Consumer products
   $ 1,427     $ 1,370     $ 1,331     $ 1,665     $ 1,087  
Financial services
     94       105       100       102       114  
 
                              
 
                                        
 
     1,521       1,475       1,431       1,767       1,201  
 
                                        
Portion of rent expense deemed to represent interest factor
     266       255       247       217       147  
 
                              
 
                                        
Fixed charges
   $ 1,787     $ 1,730     $ 1,678     $ 1,984     $ 1,348  
 
                              
 
                                        
Ratio of earnings to fixed charges (A)
     8.8       9.4       11.6       8.0       11.3  
 
                              

(A) Earnings from continuing operations 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 10.0 to 1.0 for the year ended December 31, 2002.