EX-12 2 dex12.htm STATEMENT REGARDING COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES 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)

 


 

    

Six Months

Ended

June 30, 2005


   

Three Months

Ended

June 30, 2005


 

Earnings from continuing operations before income taxes and minority interest

   $ 8,046     $ 4,151  

Add (deduct):

                

Equity in net earnings of less than 50% owned affiliates

     (138 )     (85 )

Dividends from less than 50% owned affiliates

     47       47  

Fixed charges

     948       499  

Interest capitalized, net of amortization

     (3 )     (2 )
    


 


Earnings available for fixed charges

   $ 8,900     $ 4,610  
    


 


Fixed charges:

                

Interest incurred:

                

Consumer products

   $ 779     $ 415  

Financial services

     36       17  
    


 


       815       432  

Portion of rent expense deemed to represent interest factor

     133       67  
    


 


Fixed charges

   $ 948     $ 499  
    


 


Ratio of earnings to fixed charges

     9.4       9.2  
    


 



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.

 

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