EX-12 5 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, 2009		     Three Months
Ended
June 30, 2009		  

Earnings from continuing operations before
income taxes

    $ 2,568      $ 1,607   

Add (deduct):

     

Equity in net earnings of less than 50% owned

    affiliates

      (319 )      (216 ) 

Fixed charges

      682        301   

Interest capitalized, net of amortization

      (7 )      5   
                

Earnings available for fixed charges

    $ 2,924      $ 1,697   
                

Fixed charges:

     

Interest incurred (A):

     

Consumer products

    $ 653      $ 286   

Financial services

      19        10   
                
     672        296   

Portion of rent expense deemed to represent interest factor

      10        5   
                

Fixed charges

    $ 682      $ 301   
                

Ratio of earnings to fixed charges

      4.3        5.6   
                

 

  (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.

 

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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,  
         2008             2007             2006             2005             2004      

Earnings from continuing operations
before income taxes

    $ 4,789      $ 4,678      $ 4,753      $ 4,123      $ 4,083   

Add (deduct):

           

Equity in net earnings of less than
50% owned affiliates

      (471 )      (516 )      (466 )      (447 )      (524 ) 

Dividends from less than 50%
owned affiliates

      249        224        193        168        148   

Fixed charges

      529        888        1,613        1,881        1,787   

Interest capitalized, net of
amortization

      (9 )      (5 )        5       6   
                                        

Earnings available for fixed charges

    $ 5,087      $ 5,269      $ 6,093      $ 5,730      $ 5,500   
                                        

Fixed charges:

           

Interest incurred (A):

           

Consumer products

    $ 451      $ 697      $ 1,283      $ 1,525      $ 1,427   

Financial services

      38        54        81        107        94   
                                        
     489        751        1,364        1,632        1,521   

Portion of rent expense deemed to
represent interest factor

      40        137        249        249        266   
                                        

Fixed charges

    $ 529      $ 888      $ 1,613      $ 1,881      $ 1,787   
                                        

Ratio of earnings to fixed charges (B)

      9.6        5.9        3.8        3.0        3.1   
                                        

 

  (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)

Computation includes interest incurred and the portion of rent expense deemed to represent the interest factor from the discontinued operations of Philip Morris International Inc. and Kraft Foods Inc. in fixed charges. Excluding these amounts from fixed charges, the ratio of earnings to fixed charges from continuing operations would have been 12.5, 9.5, 7.6, 5.7 and 5.7 for the years ended December 31, 2008, 2007, 2006, 2005, and 2004, respectively.

 

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