EX-12 6 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,  
     2007     2006     2005     2004     2003  

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

   $     13,020     $     12,520     $     11,319     $     10,058     $     9,414  

Add (deduct):

          

Equity in net earnings of less than 50% owned affiliates

     (109 )     (172 )     (180 )     (134 )     (152 )

Dividends from less than 50% owned affiliates

     227       196       170       154       116  

Fixed charges

     783       927       1,082       938       899  

Interest capitalized, net of amortization

     (13 )     (4 )     (7 )     2       11  
                                        

Earnings available for fixed charges

   $ 13,908     $ 13,467     $ 12,384     $ 11,018     $ 10,288  
                                        

Fixed charges:

          

Interest incurred:

          

Consumer products

   $ 628     $ 744     $ 871     $ 747     $ 689  

Financial services

     54       81       107       94       105  
                                        
     682       825       978       841       794  

Portion of rent expense deemed to represent interest factor

     101       102       104       97       105  
                                        

Fixed charges

   $ 783     $ 927     $ 1,082     $ 938     $ 899  
                                        

Ratio of earnings to fixed charges (A)

     17.8       14.5       11.4       11.7       11.4  
                                        

(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 15.8, 8.8, 7.0, 6.6 and 6.4 for the years ended December 31, 2007, 2006, 2005, 2004 and 2003, respectively.