EX-12.1 3 g82782exv12w1.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges
 

EXHIBIT 12.1

R.J. REYNOLDS TOBACCO HOLDINGS, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in Millions)
(Unaudited)
                                             
For the
Three Months For the Years Ended December 31,
Ended
March 31, 2003 2002 2001 2000 1999
Earnings before fixed charges:
                                       
 
Income from continuing operations before income taxes
  $ 116     $ 683     $ 892     $ 748     $ 510  
 
Addback: Loss on equity investment
    2       —       —       —       —  
     
     
     
     
     
 
      118       683       892       748       510  
 
Interest and debt expense
    36       147       150       168       268  
 
Interest portion of rental expense
    3       15       14       15       15  
     
     
     
     
     
 
Earnings before fixed charges
  $ 157     $ 845     $ 1,056     $ 931     $ 793  
     
     
     
     
     
 
Fixed charges:
                                       
 
Interest and debt expense
  $ 36     $ 147     $ 150     $ 168     $ 268  
 
Interest portion of rental expense
    3       15       14       15       15  
     
     
     
     
     
 
   
Total fixed charges
  $ 39     $ 162     $ 164     $ 183     $ 283  
     
     
     
     
     
 
Ratio of earnings to fixed charges
    4.0       5.2       6.4       5.1       2.8