EX-12 5 dex12.txt STATEMENT REGARDING COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES Exhibit 12 ALTRIA GROUP, INC. AND SUBSIDIARIES Computation of Ratios of Earnings to Fixed Charges (in millions of dollars) ------------------------- Three Months Ended March 31, 2003 -------------- Earnings before income taxes and minority interest $ 3,581 Add (deduct): Equity in net earnings of less than 50% owned affiliates (43) Dividends from less than 50% owned affiliates 37 Fixed charges 413 Interest capitalized, net of amortization 3 ------- Earnings available for fixed charges $ 3,991 ======= Fixed charges: Interest incurred: Consumer products $ 332 Financial services 28 ------- 360 Portion of rent expense deemed to represent interest factor 53 ------- Fixed charges $ 413 ======= Ratio of earnings to fixed charges 9.7 ======= -1- 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 ======= ======= ======= ======= ======= Ration 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. -2-