Exhibit 12
ALTRIA GROUP, INC. AND SUBSIDIARIES
Computation of Ratios of Earnings to Fixed Charges
(in millions of dollars)
Six Months Ended June 30, 2008 | Three Months Ended June 30, 2008 | |||||||||
Earnings from continuing operations before | $ | 2,450 | $ | 1,471 | ||||||
Add (deduct): | ||||||||||
Equity in net earnings of less than 50% owned affiliates | (292 | ) | (149 | ) | ||||||
Fixed charges | 131 | 54 | ||||||||
Interest capitalized, net of amortization | 1 | 1 | ||||||||
Earnings available for fixed charges | $ | 2,290 | $ | 1,377 | ||||||
Fixed charges: | ||||||||||
Interest incurred (A): | ||||||||||
Consumer products | $ | 100 | $ | 40 | ||||||
Financial services | 20 | 9 | ||||||||
120 | 49 | |||||||||
Portion of rent expense deemed to represent interest factor | 11 | 5 | ||||||||
Fixed charges | $ | 131 | $ | 54 | ||||||
Ratio of earnings to fixed charges (B) | 17.5 | 25.5 | ||||||||
(A) | 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. |
(B) | Reflects Philip Morris International Inc. (“PMI”) as a discontinued operation. Interest incurred and the portion of rent expense deemed to represent the interest factor of PMI have been excluded from fixed charges in the computation. Including these amounts in fixed charges, the ratio of earnings to fixed charges would have been 9.2 for the six months ended June 30, 2008. |
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Exhibit 12
ALTRIA GROUP, INC. AND SUBSIDIARIES
Computation of Ratios of Earnings to Fixed Charges
(in millions of dollars)
For the Years Ended December 31, | ||||||||||||||||||||
2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||
Earnings from continuing operations before income taxes | $ | 4,678 | $ | 4,753 | $ | 4,123 | $ | 4,083 | $ | 3,490 | ||||||||||
Add (deduct): | ||||||||||||||||||||
Equity in net earnings of less than 50% owned affiliates | (516 | ) | (466 | ) | (447 | ) | (524 | ) | (311 | ) | ||||||||||
Dividends from less than 50% owned affiliates | 224 | 193 | 168 | 148 | 112 | |||||||||||||||
Fixed charges | 514 | 681 | 818 | 783 | 782 | |||||||||||||||
Interest capitalized, net of amortization | (5 | ) | 5 | 6 | 9 | |||||||||||||||
Earnings available for fixed charges | $ | 4,895 | $ | 5,161 | $ | 4,667 | $ | 4,496 | $ | 4,082 | ||||||||||
Fixed charges: | ||||||||||||||||||||
Interest incurred (A): | ||||||||||||||||||||
Consumer products | $ | 438 | $ | 567 | $ | 674 | $ | 648 | $ | 639 | ||||||||||
Financial services | 54 | 81 | 107 | 94 | 105 | |||||||||||||||
492 | 648 | 781 | 742 | 744 | ||||||||||||||||
Portion of rent expense deemed to represent interest factor | 22 | 33 | 37 | 41 | 38 | |||||||||||||||
Fixed charges | $ | 514 | $ | 681 | $ | 818 | $ | 783 | $ | 782 | ||||||||||
Ratio of earnings to fixed charges (B) | 9.5 | 7.6 | 5.7 | 5.7 | 5.2 | |||||||||||||||
(A) | 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. |
(B) | Reflects Philip Morris International Inc. (“PMI”) and Kraft Foods Inc. (“Kraft”) as discontinued operations. Interest incurred and the portion of rent expense deemed to represent the interest factor of PMI and Kraft have been excluded from fixed charges in the computation. Including these amounts in fixed charges, the ratio of earnings to fixed charges would have been 5.9, 3.8, 3.0, 3.1 and 2.9 for the years ended December 31, 2007, 2006, 2005, 2004 and 2003, respectively. |
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