EXHIBIT 12
COMPUTATION OF EARNINGS TO FIXED CHARGES RATIO
(in thousands of dollars, except ratio data)
Year Ended | ||||||||||||
Dec 28, 2008 | Dec 30, 2007 | Dec 31, 2006 | ||||||||||
Fixed Charge Computation | ||||||||||||
Interest Expenses: | ||||||||||||
Net interest expense | $ | 157,385 | $ | 197,997 | $ | 93,664 | ||||||
Plus Capitalized interest | 192 | 468 | 2,148 | |||||||||
Gross interest | 157,577 | 198,465 | 95,812 | |||||||||
Interest on Unrecognized Tax Benefits (1) | (9,478 | ) | (7,270 | ) | — | |||||||
Amortization of debt discount | (4,911 | ) | (2,352 | ) | (1,174 | ) | ||||||
Interest Component of Rent Expense | 6,098 | 5,679 | 5,287 | |||||||||
Total Fixed Charges | $ | 149,286 | $ | 194,522 | $ | 99,925 | ||||||
Earnings Computation | ||||||||||||
Income from Continuing Operations Before Income Taxes | $ | 22,085 | $ | (2,883,191 | ) | $ | 270,885 | |||||
(Earnings) Losses of Equity Investments | 14,021 | 36,899 | (4,951 | ) | ||||||||
Impairment Related Charge Recorded by Equity Investee (2) | 16,947 | — | — | |||||||||
Interest on Unrecognized Tax Benefits | 9,478 | 7,270 | — | |||||||||
Distributed Income of Equity Investees | 1,740 | 7,424 | 4,345 | |||||||||
Add: Fixed Charges | 149,286 | 194,522 | 99,925 | |||||||||
Less: Capitalized Interest | (192 | ) | (468 | ) | (2,148 | ) | ||||||
Total Earnings as Adjusted | $ | 213,365 | $ | (2,637,544 | ) | $ | 368,056 | |||||
Ratio Of Earnings to Fixed Charges (3) | 1.43 | — | 3.68 |
(1) | The Company began recording the interest on unrecognized tax benefits in interest expense in fiscal 2007 when it adopted FIN 48. |
(2) | Reflects the Company’s portion of loss related to an impairment and recorded in “Write-down of investments and land held for sale” in the Consolidated Statement of Income. |
(3) | Earnings were inadequate to cover fixed charges by $2.8 billion for the year ended December 30, 2007, as a result of non-cash impairment charges of $3.0 billion. |
The Company had no registered debt securities prior to the Acquisition on June 27, 2006.