Exhibit 12.1
BROADCOM LIMITED AND BROADCOM CAYMAN L.P.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Fiscal Year Ended | ||||||||||||||||||||
October 29, 2017 | October 30, 2016 | November 1, 2015 | November 2, 2014 | November 3, 2013 | ||||||||||||||||
(in millions, except ratio data) | ||||||||||||||||||||
Fixed charges (1): | ||||||||||||||||||||
Interest expense | $ | 430 | $ | 549 | $ | 169 | $ | 96 | $ | 1 | ||||||||||
Capitalized interest | 23 | 17 | 5 | 2 | — | |||||||||||||||
Amortization of debt issuance costs and accretion of debt discount | 24 | 36 | 22 | 14 | 1 | |||||||||||||||
Portion of rental expense representative of interest (2) | 84 | 76 | 26 | 14 | 4 | |||||||||||||||
Total fixed charges | $ | 561 | $ | 678 | $ | 222 | $ | 126 | $ | 6 | ||||||||||
Earnings: | ||||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | 1,825 | $ | (1,107 | ) | $ | 1,467 | $ | 342 | $ | 568 | |||||||||
Fixed charges per above | 561 | 678 | 222 | 126 | 6 | |||||||||||||||
Amortization of capitalized interest | 1 | 1 | — | — | — | |||||||||||||||
Less: capitalized interest | (23 | ) | (17 | ) | (5 | ) | (2 | ) | — | |||||||||||
Total earnings | $ | 2,364 | $ | (445 | ) | $ | 1,684 | $ | 466 | $ | 574 | |||||||||
Deficiency of earnings to fixed charges | — | $ | (1,123 | ) | — | — | — | |||||||||||||
Ratio of earnings to fixed charges | 4.2 | — | 7.6 | 3.7 | 94.4 |
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(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 accretion of debt discount, capitalized interest and an estimate of interest expense within rental expense. "Earnings" consist of income (loss) from continuing operations before income taxes plus fixed charges and amortization of capitalized interest less capitalized interest. |
(2) | The Company uses one-third of rental expense as an estimation of the interest factor on its rental expense. |