Exhibit 12
ALTRIA GROUP, INC. AND SUBSIDIARIES
Computation of Ratios of Earnings to Fixed Charges
(in millions of dollars)
| Nine Months Ended September 30, 2011 | Three Months Ended September 30, 2011 | |||||||
Earnings before income taxes | $ | 4,399 | $ | 1,793 | ||||
Add (deduct): | ||||||||
Equity in net earnings of less than 50% owned affiliates | (561 | ) | (210 | ) | ||||
Dividends from less than 50% owned affiliates | 280 | 264 | ||||||
Fixed charges | 895 | 296 | ||||||
Interest capitalized, net of amortization | (6 | ) | 5 | |||||
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Earnings available for fixed charges | $ | 5,007 | $ | 2,148 | ||||
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Fixed charges: | ||||||||
Interest incurred (A) | $ | 880 | $ | 291 | ||||
Portion of rent expense deemed to represent interest factor | 15 | 5 | ||||||
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Fixed charges | $ | 895 | $ | 296 | ||||
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Ratio of earnings to fixed charges | 5.6 | 7.3 | ||||||
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| (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. |
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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, | ||||||||||||||||||||
| 2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
Earnings from continuing operations before income taxes | $ | 5,723 | $ | 4,877 | $ | 4,789 | $ | 4,678 | $ | 4,753 | ||||||||||
Add (deduct): | ||||||||||||||||||||
Equity in net earnings of less than 50% owned affiliates | (631 | ) | (601 | ) | (471 | ) | (516 | ) | (466 | ) | ||||||||||
Dividends from less than 50% owned affiliates | 303 | 254 | 249 | 224 | 193 | |||||||||||||||
Fixed charges | 1,152 | 1,249 | 529 | 888 | 1,613 | |||||||||||||||
Interest capitalized, net of amortization | 26 | 5 | (9 | ) | (5 | ) | ||||||||||||||
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Earnings available for fixed charges | $ | 6,573 | $ | 5,784 | $ | 5,087 | $ | 5,269 | $ | 6,093 | ||||||||||
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Fixed charges: | ||||||||||||||||||||
Interest incurred (A): | ||||||||||||||||||||
Consumer products | $ | 1,133 | $ | 1,210 | $ | 451 | $ | 697 | $ | 1,283 | ||||||||||
Financial services | 20 | 38 | 54 | 81 | ||||||||||||||||
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| 1,133 | 1,230 | 489 | 751 | 1,364 | ||||||||||||||||
Portion of rent expense deemed to represent interest factor | 19 | 19 | 40 | 137 | 249 | |||||||||||||||
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Fixed charges | $ | 1,152 | $ | 1,249 | $ | 529 | $ | 888 | $ | 1,613 | ||||||||||
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Ratio of earnings to fixed charges (B) | 5.7 | 4.6 | 9.6 | 5.9 | 3.8 | |||||||||||||||
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| (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) | Computation includes interest incurred and the portion of rent expense deemed to represent the interest factor from the discontinued operations of Philip Morris International Inc. and Kraft Foods Inc. in fixed charges. Excluding these amounts from fixed charges, the ratio of earnings to fixed charges from continuing operations would have been 12.5, 9.5 and 7.6 for the years ended December 31, 2008, 2007 and 2006, respectively. |
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