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)

 

 

    

Nine Months

Ended

September 30, 2005

   

Three Months

Ended

September 30, 2005

Earnings from continuing operations before income taxes and minority interest

    $12,055    $4,009

Add (deduct):

          

Equity in net earnings of less than 50% owned affiliates

           (208)           (70)

Dividends from less than 50% owned affiliates

             51             4

Fixed charges

        1,437         489

Interest capitalized, net of amortization

               (4)             (1)
    
  

Earnings available for fixed charges

    $13,331    $4,431
    
  

Fixed charges:

          

Interest incurred:

          

Consumer products

    $  1,189    $   410

Financial services

             49           13
    
  
         1,238         423

Portion of rent expense deemed to represent interest factor

           199           66
    
  

Fixed charges

    $  1,437    $   489
    
  

Ratio of earnings to fixed charges

            9.3          9.1
    
  

 

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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,
  
     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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