EX-12 4 exhibit12.htm STATEMENT REGARDING COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES Exhibit 12




 
 
 
 
Exhibit 12
 
 
 
 
 
 
ALTRIA GROUP, INC. AND SUBSIDIARIES
 
Computation of Ratios of Earnings to Fixed Charges
 
(in millions of dollars)
 
 
 
 
 
 
 
Six Months
Ended
June 30, 2012
 
Three Months
Ended
June 30, 2012
 
 
 
 
 
 
Earnings before income taxes
$
3,676

 
$
1,807

 
 
 
 
 
 
Add (deduct):
 
 
 
 
Equity in net earnings of less than 50% owned affiliates
(746
)
 
(224
)
 
Dividends from less than 50% owned affiliates
2

 
2

 
Fixed charges
597

 
299

 
Interest capitalized, net of amortization
9

 
4

 
Earnings available for fixed charges
$
3,538

 
$
1,888

 
Fixed charges:
 
 
 
 
Interest incurred (A)
$
586

 
$
293

 
Portion of rent expense deemed to represent interest factor
11

 
6

 
Fixed charges
$
597

 
$
299

 
 
 
 
 
 
Ratio of earnings to fixed charges
5.9

 
6.3

 
 
 
 
 
 
(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,
 
2011
 
2010
 
2009
 
2008
 
2007
Earnings from continuing operations before income taxes
$
5,582

 
$
5,723

 
$
4,877

 
$
4,789

 
$
4,678

 
 
 
 
 
 
 
 
 
 
Add (deduct):
 
 
 
 
 
 
 
 
 
Equity in net earnings of less than 50% owned affiliates
(741
)
 
(631
)
 
(601
)
 
(471
)
 
(516
)
Dividends from less than 50% owned affiliates
374

 
303

 
254

 
249

 
224

Fixed charges
1,254

 
1,152

 
1,249

 
529

 
888

Interest capitalized, net of amortization
(2
)
 
26

 
5

 
(9
)
 
(5
)
Earnings available for fixed charges
$
6,467

 
$
6,573

 
$
5,784

 
$
5,087

 
$
5,269

 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
Interest incurred (A):
 
 
 
 
 
 
 
 
 
Consumer products
$
1,233

 
$
1,133

 
$
1,210

 
$
451

 
$
697

Financial services
 
 
 
 
20

 
38

 
54

 
1,233

 
1,133

 
1,230

 
489

 
751

Portion of rent expense deemed to represent interest factor
21

 
19

 
19

 
40

 
137

Fixed charges
$
1,254

 
$
1,152

 
$
1,249

 
$
529

 
$
888

 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges (B)
5.2

 
5.7

 
4.6

 
9.6

 
5.9

 
 
 
 
 
 
 
 
 
 
(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 and 9.5 for the years ended December 31, 2008 and 2007, respectively.
 
 
 
 


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