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 Years Ended December 31, | ||||||||||||||||||||||
2005 | 2004 | 2003 | 2002 | 2001 | ||||||||||||||||||
Earnings before fixed charges: | ||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | 1,416 | $ | 829 | $ | (3,918 | ) | $ | 683 | $ | 892 | |||||||||||
Addback (deduct): Loss (income) on equity investment | (10 | ) | (9 | ) | 5 | — | — | |||||||||||||||
1,406 | 820 | (3,913 | ) | 683 | 892 | |||||||||||||||||
Interest and debt expense | 113 | 85 | 111 | 147 | 150 | |||||||||||||||||
Interest portion of rental expense | 12 | 12 | 12 | 15 | 14 | |||||||||||||||||
Earnings (loss) before fixed charges | $ | 1,531 | $ | 917 | $ | (3,790 | ) | $ | 845 | $ | 1,056 | |||||||||||
Fixed charges: | ||||||||||||||||||||||
Interest and debt expense | $ | 113 | $ | 85 | $ | 111 | $ | 147 | $ | 150 | ||||||||||||
Interest portion of rental expense | 12 | 12 | 12 | 15 | 14 | |||||||||||||||||
Total fixed charges | $ | 125 | $ | 97 | $ | 123 | $ | 162 | $ | 164 | ||||||||||||
Ratio of earnings to fixed charges | 12.2 | 9.5 | — | 5.2 | 6.4 | |||||||||||||||||
Deficiency in the coverage of fixed charges by earnings before fixed charges | $ | — | $ | — | (3,913 | ) | — | — | ||||||||||||||