EX-12 2 dex12.htm COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES 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,
         2007        2006        2005        2004        2003

Earnings from continuing operations before income taxes

     $ 4,678       $ 4,753       $ 4,123       $ 4,083       $ 3,490 

Add (Deduct):

                        

Equity in net earnings of less than 50% owned affiliates

       (516)        (466)        (447)        (524)        (311)

Dividends from less than 50% owned affiliates

       224         193         168         148         112 

Fixed Charges

       514         681         818         783         782 

Interest capitalized, net of amortization

       (5)        -                         
                                            

Earnings available for fixed charges

     $             4,895       $             5,161       $             4,667       $             4,496       $             4,082 
                                            

Fixed Charges:

                        

Interest incurred:

                        

Consumer Products

     $ 438       $ 567       $ 674       $ 648       $ 639 

Financial Services

       54         81         107         94         105 
                                            
       492         648         781         742         744 

Portion of rent expense deemed to represent interest factor

       22         33         37         41         38 
                                            

Fixed Charges

     $ 514       $ 681       $ 818       $ 783       $ 782 
                                            

Ratio of earnings to fixed charges (A)

       9.5         7.6         5.7         5.7         5.2 
                                            

(A) Reflects Philip Morris International Inc. (“PMI”) and Kraft Foods Inc. (“Kraft”) as discontinued operations. Interest incurred and the portion of rent expense deemed to represent the interest factor of PMI and 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 5.9, 3.8, 3.0, 3.1 and 2.9 for the years ended December 31, 2007, 2006, 2005, 2004 and 2003, respectively.