EX-12.1 3 d478145dex121.htm COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

Exhibit 12.1

Altria Group, Inc. and Subsidiaries

Computation of Ratios of Earnings to Fixed Charges

(in millions of dollars)

 

     Nine
Months
Ended
9/30/17		     For the Years Ended December 31,  
     2016     2015     2014     2013     2012  

Earnings before income taxes

    $ 7,645     $ 21,852     $ 8,078     $ 7,774     $ 6,942     $ 6,477  

Add (deduct):

             

Equity in net earnings of less than 50% owned affiliates

      (335 )      (800 )      (755 )      (1,011 )      (993 )      (1,229 ) 

Dividends from less than 50% owned affiliates

      434       739       495       459       443       404  

Fixed charges

      552       768       821       879       1,104       1,165  

Interest capitalized, net of amortization

      —         —         14       6       (7 )      (4 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings available for fixed charges

    $ 8,296     $ 22,559     $ 8,653     $ 8,107     $ 7,489     $ 6,813  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed charges:

             

Interest incurred (1)

    $ 539     $ 750     $ 805     $ 861     $ 1,087     $ 1,148  

Portion of rent expense deemed to represent interest factor

      13       18       16       18       17       17  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed charges

    $ 552     $ 768     $ 821     $ 879     $ 1,104     $ 1,165  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings to fixed charges (2)

      15.0       29.4       10.5       9.2       6.8       5.8  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(1)  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.
(2)  The ratio of earnings to fixed charges for the year ended December 31, 2016 includes the pre-tax gain of approximately $13.9 billion as a result of the AB InBev/SABMiller plc business combination. Excluding this gain, the ratio of earnings to fixed charges would have been 11.3 for the year ended December 31, 2016.