Exhibit 12.1
Altria Group, Inc. and Subsidiaries
Computation of Ratios of Earnings to Fixed Charges
(in millions of dollars)
| Nine Months Ended 9/30/17 | For the Years Ended December 31, | |||||||||||||||||||||||
| 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||||||
Earnings before income taxes | $ | 7,645 | $ | 21,852 | $ | 8,078 | $ | 7,774 | $ | 6,942 | $ | 6,477 | ||||||||||||
Add (deduct): | ||||||||||||||||||||||||
Equity in net earnings of less than 50% owned affiliates | (335 | ) | (800 | ) | (755 | ) | (1,011 | ) | (993 | ) | (1,229 | ) | ||||||||||||
Dividends from less than 50% owned affiliates | 434 | 739 | 495 | 459 | 443 | 404 | ||||||||||||||||||
Fixed charges | 552 | 768 | 821 | 879 | 1,104 | 1,165 | ||||||||||||||||||
Interest capitalized, net of amortization | — | — | 14 | 6 | (7 | ) | (4 | ) | ||||||||||||||||
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Earnings available for fixed charges | $ | 8,296 | $ | 22,559 | $ | 8,653 | $ | 8,107 | $ | 7,489 | $ | 6,813 | ||||||||||||
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Fixed charges: | ||||||||||||||||||||||||
Interest incurred(1) | $ | 539 | $ | 750 | $ | 805 | $ | 861 | $ | 1,087 | $ | 1,148 | ||||||||||||
Portion of rent expense deemed to represent interest factor | 13 | 18 | 16 | 18 | 17 | 17 | ||||||||||||||||||
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Fixed charges | $ | 552 | $ | 768 | $ | 821 | $ | 879 | $ | 1,104 | $ | 1,165 | ||||||||||||
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Ratio of earnings to fixed charges(2) | 15.0 | 29.4 | 10.5 | 9.2 | 6.8 | 5.8 | ||||||||||||||||||
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| (1) | 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. |
| (2) | The ratio of earnings to fixed charges for the year ended December 31, 2016 includes thepre-tax gain of approximately $13.9 billion as a result of the AB InBev/SABMiller plc business combination. Excluding this gain, the ratio of earnings to fixed charges would have been 11.3 for the year ended December 31, 2016. |