EX-12 4 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, 2008
        Three Months
Ended
September 30, 2008

Earnings from continuing operations before income taxes

   $ 3,808       $ 1,358

Add (deduct):

        

Equity in net earnings of less than 50% owned affiliates

     (347)         (55)

Dividends from less than 50% owned affiliates

     181         181

Fixed charges

     204         73

Interest capitalized, net of amortization

     (24)         (25)
                

Earnings available for fixed charges

   $ 3,822       $ 1,532
                

Fixed charges:

        

Interest incurred (A):

        

Consumer products

   $ 159       $ 59

Financial services

     28         8
                
     187         67

Portion of rent expense deemed to represent interest factor

     17         6
                

Fixed charges

   $ 204       $ 73
                

Ratio of earnings to fixed charges (B)

     18.7         21.0
                

 

(A)

Altria Group, Inc. includes interest relating to uncertain tax positions in its provision for income taxes, therefore such amounts are not included in fixed charges in the computation.

 

(B)

Reflects Philip Morris International Inc. (“PMI”) as a discontinued operation. Interest incurred and the portion of rent expense deemed to represent the interest factor of PMI 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 11.8 for the nine months ended September 30, 2008.

 

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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,  
     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 )       5       6       9  
                                        

Earnings available for fixed charges

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

Fixed charges:

          

Interest incurred (A):

          

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 (B)

     9.5       7.6       5.7       5.7       5.2  
                                        

 

(A)

Altria Group, Inc. includes interest relating to uncertain tax positions in its provision for income taxes, therefore such amounts are not included in fixed charges in the computation.

 

(B)

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.

 

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