EX-12 6 dex12.htm STATEMENTS REGARDING COMPUTATION OF RATIOS Statements regarding Computation of ratios

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,  
     2008     2007     2006     2005     2004  

Earnings from continuing operations before income taxes

   $ 4,789     $ 4,678     $ 4,753     $ 4,123     $ 4,083  

Add (Deduct):

          

Equity in net earnings of less than 50% owned affiliates

     (471 )     (516 )     (466 )     (447 )     (524 )

Dividends from less than 50% owned affiliates

     249       224       193       168       148  

Fixed Charges

     529       888       1,613       1,881       1,787  

Interest capitalized, net of amortization

     (9 )     (5 )     —         5       6  
                                        

Earnings available for fixed charges

   $ 5,087     $ 5,269     $ 6,093     $ 5,730     $ 5,500  
                                        

Fixed Charges:

          

Interest incurred (A):

          

Consumer Products

   $ 451     $ 697     $ 1,283     $ 1,525     $ 1,427  

Financial Services

     38       54       81       107       94  
                                        
     489       751       1,364       1,632       1,521  

Portion of rent expense deemed to represent interest factor

     40       137       249       249       266  
                                        

Fixed Charges

   $ 529     $ 888     $ 1,613     $ 1,881     $ 1,787  
                                        

Ratio of earnings to fixed charges (B)

     9.6       5.9       3.8       3.0       3.1  
                                        

 

(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, 7.6, 5.7, and 5.7 for the years ended December 31, 2008, 2007, 2006, 2005 and 2004, respectively.