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, 2006

   

Three Months

Ended

June 30, 2006

 

Earnings from continuing operations before income
taxes, minority interest, and equity earnings, net

   $ 7,973     $ 4,137  

Add (deduct):

    

Equity in net earnings of less than 50% owned affiliates

     (115 )     (59 )

Dividends from less than 50% owned affiliates

     48       48  

Fixed charges

     860       424  

Interest capitalized, net of amortization

     (3 )     (2 )
                

Earnings available for fixed charges

   $ 8,763     $ 4,548  
                

Fixed charges:

    

Interest incurred:

    

Consumer products

   $ 686     $ 337  

Financial services

     49       24  
                
     735       361  

Portion of rent expense deemed to represent interest factor

     125       63  
                

Fixed charges

   $ 860     $ 424  
                

Ratio of earnings to fixed charges

     10.2       10.7  
                

 

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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,  
     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.

 

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