EX-12 4 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,

 
     2005

    2004

    2003

    2002

    2001

 

Earnings from continuing operations before income taxes, minority interest and cumulative effect of accounting change

   $ 15,435     $ 14,004     $ 14,609     $ 17,945     $ 14,117  

Add (deduct):

                                        

Equity in net earnings of less than 50% owned affiliates

     (247 )     (141 )     (205 )     (235 )     (228 )

Dividends from less than 50% owned affiliates

     225       200       157       45       29  

Fixed charges

     1,881       1,787       1,730       1,678       1,984  

Interest capitalized, net of amortization

     (7 )             10       10       10  
    


 


 


 


 


Earnings available for fixed charges

   $ 17,287     $ 15,850     $ 16,301     $ 19,443     $ 15,912  
    


 


 


 


 


Fixed charges:

                                        

Interest incurred:

                                        

Consumer products

   $ 1,525     $ 1,427     $ 1,370     $ 1,331     $ 1,665  

Financial services

     107       94       105       100       102  
    


 


 


 


 


       1,632       1,521       1,475       1,431       1,767  

Portion of rent expense deemed to represent interest factor

     249       266       255       247       217  
    


 


 


 


 


Fixed charges

   $ 1,881     $ 1,787     $ 1,730     $ 1,678     $ 1,984  
    


 


 


 


 


Ratio of earnings to fixed charges (A)

     9.2       8.9       9.4       11.6       8.0  
    


 


 


 


 


 

(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.