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, 2010

   

Three Months

Ended

September 30, 2010

Earnings before income taxes

       $     4,316         $     1,683    

Add (deduct):

            

Equity in net earnings of less than 50% owned affiliates

               (438)             (187)

Dividends from less than 50% owned affiliates

               219               219  

Fixed charges

               872               290  

Interest capitalized, net of amortization

                 19                 7 
               

Earnings available for fixed charges

       $     4,988         $    2,012    
               

Fixed charges:

            

Interest incurred (A)

       $        858         $        285    

Portion of rent expense deemed to represent interest factor

                   14                   5
               

Fixed charges

       $        872         $        290    
               

Ratio of earnings to fixed charges

                   5.7                   6.9  
               

 

(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,  
           

2009

    

2008

    

2007

    

2006

    

2005

  

Earnings from continuing operations before income taxes

         $4,877        $4,789        $4,678        $4,753        $4,123   

Add (deduct):

              

Equity in net earnings of less than 50% owned affiliates

         (601 )      (471 )      (516 )      (466 )      (447 ) 

Dividends from less than 50% owned affiliates

         254        249        224        193        168   

Fixed charges

         1,249        529        888        1,613        1,881   

Interest capitalized, net of amortization

         5        (9 )      (5 )        5  
                                           

Earnings available for fixed charges

         $5,784        $5,087        $5,269        $6,093        $5,730   
                                           

Fixed charges:

              

Interest incurred (A):

              

Consumer products

         $1,210        $    451        $    697        $1,283        $1,525   

Financial services

         20        38        54        81        107   
                                           
        1,230        489        751        1,364        1,632   

Portion of rent expense deemed to represent interest factor

         19        40        137        249        249   
                                           

Fixed charges

         $1,249        $    529        $    888        $1,613        $1,881   
                                           

Ratio of earnings to fixed charges (B)

         4.6        9.6        5.9        3.8        3.0   
                                           

 

(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)

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, and 5.7 for the years ended December 31, 2008, 2007, 2006, and 2005, respectively.

 

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