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)
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES/DEFICIENCY IN THE COVERAGE
OF
FIXED CHARGES BY EARNINGS BEFORE FIXED CHARGES
(Dollars in Millions)
(Unaudited)
Nine Months | ||||||||||||||||||||||||
Ended September 30, | Year Ended December 31, | |||||||||||||||||||||||
2005 | 2004 | 2003 | 2002 | 2001 | 2000 | |||||||||||||||||||
Earnings before fixed charges: | ||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | 1,199 | $ | 829 | $ | (3,918 | ) | $ | 683 | $ | 892 | $ | 748 | |||||||||||
Add back (deduct): Loss (income) on equity investment | (8 | ) | (9 | ) | 5 | — | — | — | ||||||||||||||||
1,191 | 820 | (3,913 | ) | 683 | 892 | 748 | ||||||||||||||||||
Interest and debt expense | 31 | 85 | 111 | 147 | 150 | 168 | ||||||||||||||||||
Interest portion of rental expense | 10 | 12 | 12 | 15 | 14 | 15 | ||||||||||||||||||
Earnings (loss) before fixed charges | $ | 1,232 | $ | 917 | $ | (3,790 | ) | $ | 845 | $ | 1,056 | $ | 931 | |||||||||||
Fixed charges: | ||||||||||||||||||||||||
Interest and debt expense | $ | 31 | $ | 85 | $ | 111 | $ | 147 | $ | 150 | $ | 168 | ||||||||||||
Interest portion of rental expense | 10 | 12 | 12 | 15 | 14 | 15 | ||||||||||||||||||
Total fixed charges | $ | 41 | $ | 97 | $ | 123 | $ | 162 | $ | 164 | $ | 183 | ||||||||||||
Ratio of earnings to fixed charges | 30.0 | 9.5 | — | 5.2 | 6.4 | 5.1 | ||||||||||||||||||
Deficiency in the coverage of fixed charges by earnings before fixed charges | $ | — | $ | — | (3,913 | ) | — | — | — | |||||||||||||||