Exhibit 12.1
REYNOLDS AMERICAN INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in Millions)
(Unaudited)
For The Three Months Ended March 31, | For The Years Ended December 31, | |||||||||||||||||||||||||||
2016 | 2015 | 2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Earnings before fixed charges: | ||||||||||||||||||||||||||||
Income from continuing operations before income taxes | $ | 5,719 | $ | 620 | $ | 6,384 | $ | 2,262 | $ | 2,741 | $ | 1,953 | $ | 2,186 | ||||||||||||||
Fixed charges: | ||||||||||||||||||||||||||||
Interest and debt expense(1) | 174 | 91 | 570 | 286 | 259 | 234 | 221 | |||||||||||||||||||||
Interest portion of rental expense(2) | 2 | 2 | 9 | 8 | 8 | 6 | 6 | |||||||||||||||||||||
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Add: Fixed charges | 176 | 93 | 579 | 294 | 267 | 240 | 227 | |||||||||||||||||||||
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Earnings before fixed charges | $ | 5,895 | $ | 713 | $ | 6,963 | $ | 2,556 | $ | 3,008 | $ | 2,193 | $ | 2,413 | ||||||||||||||
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Fixed charges: | ||||||||||||||||||||||||||||
Interest and debt expense(1) | $ | 174 | $ | 91 | $ | 570 | $ | 286 | $ | 259 | $ | 234 | $ | 221 | ||||||||||||||
Interest portion of rental expense(2) | 2 | 2 | 9 | 8 | 8 | 6 | 6 | |||||||||||||||||||||
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Total fixed charges | $ | 176 | $ | 93 | $ | 579 | $ | 294 | $ | 267 | $ | 240 | $ | 227 | ||||||||||||||
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Ratio of earnings to fixed charges(3) | 33.5 | 7.7 | 12.0 | 8.7 | 11.3 | 9.1 | 10.6 | |||||||||||||||||||||
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(1) | Interest and debt expense includes interest on indebtedness, amortization of debt discount and expenses, and excludes interest related to reserves for income taxes, as such interest is included in provision for income taxes. |
(2) | One-third of rent expense is the portion deemed representative of the interest factor. |
(3) | Based on unrounded amounts. |