EX-12 2 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, 2009
    Three Months
Ended
September 30, 2009
 

Earnings from continuing operations before
income taxes

  $ 3,802      $ 1,234   

Add (deduct):

   

Equity in net earnings of less than 50% owned
affiliates

    (440     (121

Dividends from less than 50% owned affiliates

    181        181   

Fixed charges

    964        282   

Interest capitalized, net of amortization

    (3     4   
               

Earnings available for fixed charges

  $ 4,504      $ 1,580   
               
   

Fixed charges:

   

Interest incurred (A):

   

Consumer products

  $ 929      $ 276   

Financial services

    20        1   
               
   
    949        277   

Portion of rent expense deemed to represent interest factor

    15        5   
               

Fixed charges

  $ 964      $ 282   
               

Ratio of earnings to fixed charges

    4.7        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.

 

-1-


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.

 

-2-