EX-12.1 4 rai-ex121_339.htm EX-12.1 rai-ex121_339.htm

 

Exhibit 12.1

REYNOLDS AMERICAN INC.

COMUPTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Dollars in Millions)

(Unaudited)

 

 

 

For the Years Ended December 31,

 

 

 

2015

 

 

2014

 

 

2013

 

 

2012

 

 

2011

 

Earnings before fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income taxes

 

$

6,384

 

 

$

2,262

 

 

$

2,741

 

 

$

1,953

 

 

$

2,186

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense (1)

 

 

570

 

 

 

286

 

 

 

259

 

 

 

234

 

 

 

221

 

Interest portion of rental expense (2)

 

 

9

 

 

 

8

 

 

 

8

 

 

 

6

 

 

 

6

 

Add: Fixed Charges

 

 

579

 

 

 

294

 

 

 

267

 

 

 

240

 

 

 

227

 

Earnings before fixed charges:

 

$

6,963

 

 

$

2,556

 

 

$

3,008

 

 

$

2,193

 

 

$

2,413

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense (1)

 

$

570

 

 

$

286

 

 

$

259

 

 

$

234

 

 

$

221

 

Interest portion of rental expense (2)

 

 

9

 

 

 

8

 

 

 

8

 

 

 

6

 

 

 

6

 

Total fixed charges

 

$

579

 

 

$

294

 

 

$

267

 

 

$

240

 

 

$

227

 

Ratio of earnings to fixed charges (3)

 

 

12.0

 

 

 

8.7

 

 

 

11.3

 

 

 

9.1

 

 

 

10.6

 

 

 

(1)

Interest and debt expense includes interest on indebtedness, amortization of debt discount and expenses, and excludes interest related to reserves on 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 rounded thousands.