EXHIBIT 12.1
Computation of Ratio of Earnings to Fixed Charges
(dollars in millions) | Nine Months Ending July 2, 2011 | |||||||||||||||||||||||
Fiscal Years | ||||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | 949 | $ | 1,203 | $ | (543 | ) | $ | 154 | $ | 410 | $ | (268 | ) | ||||||||||
Add: Fixed charges | 230 | 360 | 388 | 272 | 278 | 325 | ||||||||||||||||||
Add: Amortization of capitalized interest | 3 | 3 | 4 | 4 | 3 | 3 | ||||||||||||||||||
Less: Capitalized interest | (5 | ) | (11 | ) | (3 | ) | (3 | ) | (2 | ) | (8 | ) | ||||||||||||
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Total adjusted earnings | 1,177 | 1,555 | (154 | ) | 427 | 689 | 52 | |||||||||||||||||
Fixed Charges: | ||||||||||||||||||||||||
Interest | 147 | 240 | 289 | 212 | 228 | 263 | ||||||||||||||||||
Capitalized interest | 5 | 11 | 3 | 3 | 2 | 8 | ||||||||||||||||||
Amortization of debt discount expense | 33 | 46 | 38 | 3 | 4 | 5 | ||||||||||||||||||
Rentals at computed interest factor (1) | 45 | 63 | 58 | 54 | 44 | 49 | ||||||||||||||||||
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Total fixed charges | $ | 230 | $ | 360 | $ | 388 | $ | 272 | $ | 278 | $ | 325 | ||||||||||||
Ratio of Earnings to Fixed Charges | 5.12 | 4.32 | 1.57 | 2.48 | ||||||||||||||||||||
Insufficient Coverage | $ | 542 | $ | 273 |
(1) | Amounts represent those portions of rent expense (one-third) that are reasonable approximations of interest costs. |