EX-12 3 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, 2007

    

Three Months

Ended

September 30, 2007

  

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

    $ 10,012     $ 3,694  

Add (deduct):

     

Equity in net earnings of less than 50% owned affiliates

      (82 )     (38 )

Dividends from less than 50% owned affiliates

      158       158  

Fixed charges

      596       172  

Interest capitalized, net of amortization

      (10 )     (4 )
                

Earnings available for fixed charges

    $ 10,674     $ 3,982  
                

Fixed charges:

     

Interest incurred:

     

Consumer products

    $ 475     $ 134  

Financial services

      45       13  
                
     520       147  

Portion of rent expense deemed to represent interest factor

      76       25  
                

Fixed charges

    $ 596     $ 172  
                

Ratio of earnings to fixed charges (A)

      17.9       23.2  
                
(A) Reflects Kraft Foods Inc. as a discontinued operation. Interest incurred and the portion of rent expense deemed to represent interest factor of Kraft have been excluded from fixed charges in the computation. Including these amounts in fixed charges, the ratio of earnings to fixed charges would have been 15.4 for the nine months ended September 30, 2007.

 

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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) (B)

      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 for the year ended December 31, 2002.
(B) Reflects Kraft Foods Inc. as a discontinued operation. Interest incurred and the portion of rent expense deemed to represent interest factor of Kraft have been excluded from fixed charges in the computation. Including these amounts in fixed charges, the ratio of earnings to fixed charges would have been 8.8, 7.0, 6.6, 6.4 and 8.6 for the years ended December 31, 2006, 2005, 2004, 2003 and 2002, respectively. In addition, excluding the 2002 non-recurring pre-tax gain related to the Miller Brewing Company transaction, the ratio of earnings to fixed charges would have been 7.0 for the year ended December 31, 2002.

 

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