EX-12 3 d318132dex12.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)

 

 

 

     Three Months
Ended
March 31, 2012		  

Earnings before income taxes

    $ 1,527   

Add (deduct):

   

Equity in net earnings of less than 50% owned affiliates

      (180 ) 

Fixed charges

      298   

Interest capitalized, net of amortization

      5   
  

 

 

  

Earnings available for fixed charges

    $ 1,650   
  

 

 

  

Fixed charges:

   

Interest incurred (A)

    $ 293   

Portion of rent expense deemed to represent interest factor

      5   
  

 

 

  

Fixed charges

    $ 298   
  

 

 

  

Ratio of earnings to fixed charges

      5.5   
  

 

 

  

 

(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,  
     2011     2010     2009     2008     2007  

Earnings from continuing operations before income taxes

    $ 5,582      $ 5,723      $ 4,877      $ 4,789      $ 4,678   

Add (deduct):

           

Equity in net earnings of less than 50% owned affiliates

      (741 )      (631 )      (601 )      (471 )      (516 ) 

Dividends from less than 50% owned affiliates

      374        303        254        249        224   

Fixed charges

      1,254        1,152        1,249        529        888   

Interest capitalized, net of amortization

      (2 )      26        5        (9 )      (5 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings available for fixed charges

    $ 6,467      $ 6,573      $ 5,784      $ 5,087      $ 5,269   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed charges:

           

Interest incurred (A):

           

Consumer products

    $ 1,233      $ 1,133      $ 1,210      $ 451      $ 697   

Financial services

          20        38        54   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     1,233        1,133        1,230        489        751   

Portion of rent expense deemed to represent interest factor

      21        19        19        40        137   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed charges

    $ 1,254      $ 1,152      $ 1,249      $ 529      $ 888   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings to fixed charges (B)

      5.2        5.7        4.6        9.6        5.9   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(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.

(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 and 9.5 for the years ended December 31, 2008 and 2007, respectively.

 

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