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, 2007

   

Three Months

Ended

June 30, 2007

 

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

   $6,318     $3,182  

Add (deduct):

    

Equity in net earnings of less than 50% owned affiliates

   (44 )   (23 )

Fixed charges

   424     175  

Interest capitalized, net of amortization

   (6 )   (4 )
            

Earnings available for fixed charges

   $6,692     $3,330  
            

Fixed charges:

    

Interest incurred:

    

Consumer products

   $  341     $  133  

Financial services

   32     16  
            
   373     149  

Portion of rent expense deemed to represent interest factor

   51     26  
            

Fixed charges

   $  424     $  175  
            

Ratio of earnings to fixed charges

   15.8     19.0  
            

 

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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,  
     2006     2005     2004     2003     2002  

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

   $ 12,520     $ 11,319     $ 10,058     $ 9,414     $ 12,831  

Add (deduct):

          

Equity in net earnings of less than 50% owned affiliates

     (172 )     (180 )     (134 )     (152 )     (184 )

Dividends from less than 50% owned affiliates

     196       170       154       116       16  

Fixed charges

     927       1,082       938       899       674  

Interest capitalized, net of amortization

     (4 )     (7 )     2       11       12  
                                        

Earnings available for fixed charges

   $ 13,467     $ 12,384     $ 11,018     $ 10,288     $ 13,349  
                                        

Fixed charges:

          

Interest incurred:

          

Consumer products

   $ 744     $ 871     $ 747     $ 689     $ 473  

Financial services

     81       107       94       105       100  
                                        
     825       978       841       794       573  

Portion of rent expense deemed to represent interest factor

     102       104       97       105       101  
                                        

Fixed charges

   $ 927     $ 1,082     $ 938     $ 899     $ 674  
                                        

Ratio of earnings to fixed charges (A)

     14.5       11.4       11.7       11.4       19.8  
                                        

 

(A)

Earnings from continuing operations before income taxes, and equity earnings and minority interest, net 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 15.9 to 1.0 for the year ended December 31, 2002.

 

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