EX-12 3 exhibit12computationofrati.htm STATEMENTS REGARDING COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

|  | Exhibit 12 |
| Altria Group, Inc. and Subsidiaries
| Computation of Ratios of Earnings to Fixed Charges
| (in millions of dollars)
|  | For the Six Months Ended June 30, 2017
| Earnings before income taxes | $ | 5,001 |
| Add (deduct): |
| Equity in net earnings of less than 50% owned affiliates | (165 | )
| Dividends from less than 50% owned affiliates | 434 |
| Fixed charges | 370 |
| Earnings available for fixed charges | $ | 5,640 |
| Fixed charges: |
| Interest incurred (1) | $ | 361 |
| Portion of rent expense deemed to represent interest factor | 9 |
| Fixed charges | $ | 370 |
| Ratio of earnings to fixed charges | 15.2 |
| (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.

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Altria Group, Inc. and Subsidiaries
Computation of Ratios of Earnings to Fixed Charges
(in millions of dollars)
| For the Years Ended December 31,
| 2016 |  | 2015 |  | 2014 |  | 2013 |  | 2012
Earnings before income taxes | $ | 21,852 |  |  | $ | 8,078 |  |  | $ | 7,774 |  |  | $ | 6,942 |  |  | $ | 6,477 |
Add (deduct): |  |  |  |  |  |  |  |  |
Equity in net earnings of less than 50% owned affiliates | (800 | ) |  | (755 | ) |  | (1,011 | ) |  | (993 | ) |  | (1,229 | )
Dividends from less than 50% owned affiliates | 739 |  |  | 495 |  |  | 459 |  |  | 443 |  |  | 404 |
Fixed charges | 768 |  |  | 821 |  |  | 879 |  |  | 1,104 |  |  | 1,165 |
Interest capitalized, net of amortization | — |  |  | 14 |  |  | 6 |  |  | (7 | ) |  | (4 | )
Earnings available for fixed charges | $ | 22,559 |  |  | $ | 8,653 |  |  | $ | 8,107 |  |  | $ | 7,489 |  |  | $ | 6,813 |
Fixed charges: |  |  |  |  |  |  |  |  |
Interest incurred (1) | $ | 750 |  |  | $ | 805 |  |  | $ | 861 |  |  | $ | 1,087 |  |  | $ | 1,148 |
Portion of rent expense deemed to represent interest factor | 18 |  |  | 16 |  |  | 18 |  |  | 17 |  |  | 17 |
Fixed charges | $ | 768 |  |  | $ | 821 |  |  | $ | 879 |  |  | $ | 1,104 |  |  | $ | 1,165 |
Ratio of earnings to fixed charges (2) | 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 Gain on AB InBev/SABMiller business combination. Excluding this gain, the ratio of earnings to fixed charges would have been 11.3 for the year ended December 31, 2016.

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