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Exhibit 12.1
Statement Regarding Computation of Ratios of Earnings to Fixed Charges
The following computation of Ratios of Earnings to Fixed Charges reflects a reclassification made to prior years' consolidated financial statements relating to the sale of our US bakery business in December 2003, which has been presented as discontinued operations for all periods.
| | As of and for the Year ended December 31, | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | 2003 | 2002 | 2001 | 2000 | 1999 | |||||||||
| | (US$ in millions except ratios) | |||||||||||||
| Earnings: | ||||||||||||||
| Pre-tax income before minority interest | 723 | 481 | 264 | 66 | (21 | ) | ||||||||
| plus: Fixed charges | 258 | 211 | 265 | 271 | 222 | |||||||||
| Amortization of capitalized interest | 7 | 6 | 5 | 4 | 3 | |||||||||
| Distributed income of equity investees | — | — | — | — | — | |||||||||
| Share of pre-tax losses of equity investees | — | — | — | — | — | |||||||||
| less: Capitalized interest | (8 | ) | (6 | ) | (15 | ) | (5 | ) | (6 | ) | ||||
| Preferred stock dividends | (6 | ) | (5 | ) | (10 | ) | — | — | ||||||
| Minority interest in pre-tax income of subsidiaries that have not incurred fixed charges | — | — | — | — | — | |||||||||
| Earnings | 974 | 687 | 509 | 336 | 198 | |||||||||
Fixed Charges: | ||||||||||||||
| Capitalized interest | 8 | 6 | 15 | 5 | 6 | |||||||||
| Expensed interest | 215 | 176 | 223 | 252 | 204 | |||||||||
| plus: Amortized premiums, discounts and capitalized debt expenditures | 8 | 6 | 1 | 1 | 1 | |||||||||
| Estimate of interest within rental expense | 21 | 18 | 16 | 13 | 11 | |||||||||
| Preferred stock dividends | 6 | 5 | 10 | — | — | |||||||||
| Fixed Charges | 258 | 211 | 265 | 271 | 222 | |||||||||
Ratio of Earnings/Fixed Charges(1) | 3.78 | 3.26 | 1.92 | 1.24 | 0.89 | (2) | ||||||||
- (1)
- For the purpose of determining the Ratio of Earnings to Fixed Charges, earnings are defined as income before taxes plus fixed charges and amortization of capitalized interest less capitalized interest and preferred stock dividend requirements. Fixed charges consist of interest expense (capitalized and expensed), amortization of deferred debt issuance costs, portion of rental expense that is representative of the interest factor and preferred stock dividend requirements of majority-owned subsidiaries.
- (2)
- Earnings were inadequate to cover fixed charges by $24 million.
Statement Regarding Computation of Ratios of Earnings to Fixed Charges