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)

 

     For the Years Ended December 31,  
     2006     2005     2004     2003     2002  

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

   $ 16,536     $ 15,435     $ 14,004     $ 14,609     $ 17,945  

Add (Deduct):

          

Equity in net earnings of less than 50% owned affiliates

     (243 )     (247 )     (141 )     (205 )     (235 )

Dividends from less than 50% owned affiliates

     248       225       200       157       45  

Fixed Charges

     1,613       1,881       1,787       1,730       1,678  

Interest capitalized, net of amortization

     (8 )     (7 )       10       10  
                                        

Earnings available for fixed charges

   $ 18,146     $ 17,287     $ 15,850     $ 16,301     $ 19,443  
                                        

Fixed Charges:

          

Interest incurred:

          

Consumer Products

   $ 1,283     $ 1,525     $ 1,427     $ 1,370     $ 1,331  

Financial Services

     81       107       94       105       100  
                                        
     1,364       1,632       1,521       1,475       1,431  

Portion of rent expense deemed to represent interest factor

     249       249       266       255       247  
                                        

Fixed Charges

   $ 1,613     $ 1,881     $ 1,787     $ 1,730     $ 1,678  
                                        

Ratio of earnings to fixed charges (A)

     11.2       9.2       8.9       9.4       11.6  
                                        

 

(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.