EX-12 2 d231954dex12.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, 2011
    Three Months
Ended
September 30, 2011
 

Earnings before income taxes

   $ 4,399      $ 1,793   

Add (deduct):

    

Equity in net earnings of less than 50% owned affiliates

     (561     (210

Dividends from less than 50% owned affiliates

     280        264   

Fixed charges

     895        296   

Interest capitalized, net of amortization

     (6     5   
  

 

 

   

 

 

 

Earnings available for fixed charges

   $ 5,007      $ 2,148   
  

 

 

   

 

 

 

Fixed charges:

    

Interest incurred (A)

   $ 880      $ 291   

Portion of rent expense deemed to represent interest factor

     15        5   
  

 

 

   

 

 

 

Fixed charges

   $ 895      $ 296   
  

 

 

   

 

 

 

Ratio of earnings to fixed charges

     5.6        7.3   
  

 

 

   

 

 

 

 

(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,  
     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.

 

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