EX-12 6 dex12.htm STATEMENTS REGARDING COMPUTATION OF RATIOS Statements regarding computation of ratios

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,  
     2010     2009     2008     2007     2006  

Earnings from continuing operations before income taxes

   $ 5,723      $ 4,877      $ 4,789      $ 4,678      $ 4,753   

Add (deduct):

          

Equity in net earnings of less than 50% owned affiliates

     (631     (601     (471     (516     (466

Dividends from less than 50% owned affiliates

     303        254        249        224        193   

Fixed charges

     1,152        1,249        529        888        1,613   

Interest capitalized, net of amortization

     26        5        (9     (5  
                                        

Earnings available for fixed charges

   $ 6,573      $ 5,784      $ 5,087      $ 5,269      $ 6,093   
                                        

Fixed charges:

          

Interest incurred (A):

          

Consumer products

   $ 1,133      $ 1,210      $ 451      $ 697      $ 1,283   

Financial services

       20        38        54        81   
                                        
     1,133        1,230        489        751        1,364   

Portion of rent expense deemed to represent interest factor

     19        19        40        137        249   
                                        

Fixed charges

   $ 1,152      $ 1,249      $ 529      $ 888      $ 1,613   
                                        

Ratio of earnings to fixed charges (B)

     5.7        4.6        9.6        5.9        3.8   
                                        

 

(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, and 7.6 for the years ended December 31, 2008, 2007 and 2006, respectively.