EX-12 5 dex12.htm STATEMENTS RE: COMPUTATION OF RATIOS Statements re: computation of ratios

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 transaction disclosed in Note 3 to Altria Group, Inc.’s consolidated financial statements. Excluding this gain, the ratio of earnings to fixed charges would have been 10.3 for the year ended December 31, 2002.