EX-12.1 6 rai-ex121_10.htm EX-12.1 rai-ex121_10.htm

Exhibit 12.1

 

REYNOLDS AMERICAN INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Dollars in Millions)

(Unaudited)

 

 

 

For the Years Ended December 31,

 

 

 

2016

 

 

2015

 

 

2014

 

 

2013

 

 

2012

 

Earnings before fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income taxes

 

$

9,691

 

 

$

6,384

 

 

$

2,262

 

 

$

2,741

 

 

$

1,953

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense (1)

 

 

626

 

 

 

570

 

 

 

286

 

 

 

259

 

 

 

234

 

Interest portion of rental expense (2)

 

 

9

 

 

 

9

 

 

 

8

 

 

 

8

 

 

 

6

 

Add: Fixed Charges

 

 

635

 

 

 

579

 

 

 

294

 

 

 

267

 

 

 

240

 

Earnings before fixed charges:

 

$

10,326

 

 

$

6,963

 

 

$

2,556

 

 

$

3,008

 

 

$

2,193

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense (1)

 

$

626

 

 

$

570

 

 

$

286

 

 

$

259

 

 

$

234

 

Interest portion of rental expense (2)

 

 

9

 

 

 

9

 

 

 

8

 

 

 

8

 

 

 

6

 

Total fixed charges

 

$

635

 

 

$

579

 

 

$

294

 

 

$

267

 

 

$

240

 

Ratio of earnings to fixed charges (3)

 

 

16.3

 

 

 

12.0

 

 

 

8.7

 

 

 

11.3

 

 

 

9.1

 

 

(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.