EXHIBIT 12.1
REYNOLDS AMERICAN INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES/DEFICIENCY IN THE
COVERAGE OF FIXED CHARGES BY EARNINGS BEFORE FIXED CHARGES
(Dollars in Millions)
(Unaudited)
For the | ||||||||||||||||||||||
Nine Months | ||||||||||||||||||||||
Ended | For the Years Ended December 31, | |||||||||||||||||||||
September 30, | ||||||||||||||||||||||
2004 | 2003 | 2002 | 2001 | 2000 | ||||||||||||||||||
Earnings before fixed charges: | ||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | 783 | $ | (3,918 | ) | $ | 683 | $ | 892 | $ | 748 | |||||||||||
Addback (deduct): Loss (income) on equity investment | (4 | ) | 5 | — | — | — | ||||||||||||||||
779 | (3,913 | ) | 683 | 892 | 748 | |||||||||||||||||
Interest and debt expense | 62 | 111 | 147 | 150 | 168 | |||||||||||||||||
Interest portion of rental expense | 9 | 12 | 15 | 14 | 15 | |||||||||||||||||
Earnings (loss) before fixed charges | $ | 850 | $ | (3,790 | ) | $ | 845 | $ | 1,056 | $ | 931 | |||||||||||
Fixed charges: | ||||||||||||||||||||||
Interest and debt expense | $ | 62 | $ | 111 | $ | 147 | $ | 150 | $ | 168 | ||||||||||||
Interest portion of rental expense | 9 | 12 | 15 | 14 | 15 | |||||||||||||||||
Total fixed charges | $ | 71 | $ | 123 | $ | 162 | $ | 164 | $ | 183 | ||||||||||||
Ratio of earnings to fixed charges | 12.0 | — | 5.2 | 6.4 | 5.1 | |||||||||||||||||
Deficiency in the coverage of fixed charges by earnings before fixed charges | $ | — | $ | (3,913 | ) | $ | — | $ | — | $ | — | |||||||||||