Exhibit 12.1
AVAGO TECHNOLOGIES FINANCE PTE. LTD.
Ratio of Earnings to Fixed Charges
(IN MILLIONS)
Ratio of Earnings to Fixed Charges
(IN MILLIONS)
Predecessor | Company | ||||||||||||||||||||
Year ended October 31, | One Month Ended | Year Ended | |||||||||||||||||||
2003 | 2004 | 2005 | November 30, 2005 | October 31, 2006 | |||||||||||||||||
Fixed charges (1): | |||||||||||||||||||||
Interest expense | $ | — | $ | — | $ | — | $ | — | $ | 143 | |||||||||||
Interest factor on rentals (2) | 9 | 8 | 6 | 3 | 4 | ||||||||||||||||
Fixed charges above | $ | 9 | $ | 8 | $ | 6 | $ | 3 | $ | 147 | |||||||||||
Earnings available for fixed charges: | |||||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | (174 | ) | $ | 81 | $ | 55 | $ | (23 | ) | $ | (227 | ) | ||||||||
Fixed charges as above | 9 | 8 | 6 | 3 | 147 | ||||||||||||||||
Unamortized capitalized debt issuance costs | — | — | — | — | 37 | ||||||||||||||||
Earnings available for fixed charges | $ | (165 | ) | $ | 89 | $ | 61 | $ | (20 | ) | $ | (43 | ) | ||||||||
Ratio of earnings to fixed charges | — | 11.1 | 10.2 | — | — | ||||||||||||||||
Deficiency of earnings to fixed charges | $ | (174 | ) | — | — | $ | (23 | ) | $ | (190 | ) |
(1) | For purposes of computing this ratio of earnings to fixed charges, “fixed charges” consist of interest expense on all indebtedness plus amortization of debt issuance costs and an estimate of interest expense within rental expense. “Earnings” consist of pre-tax income (loss) from continuing operations plus fixed charges and unamortized capitalized debt issuance costs. Earnings were insufficient to cover fixed charges by $174 million for the year ended October 31, 2003, $23 million for the one month ended November 30, 2005 and $190 million for the year ended October 31, 2006. | |
(2) | The Company uses one-third of rental expense as an estimation of the interest factor on its rental expense. |