Exhibit 12
SAIC, INC.
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Six Months Ended July 31 | Fiscal Year Ended January 31 | |||||||||||||||||||||||
SAIC: | 2011 | 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||||
(in millions, except ratios) | ||||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Income from continuing operations before income taxes | $ | 389 | $ | 872 | $ | 768 | $ | 674 | $ | 598 | $ | 566 | ||||||||||||
Add: minority interest in consolidated subsidiaries with fixed charges | — | — | — | — | 3 | 5 | ||||||||||||||||||
Add: fixed charges | 84 | 138 | 129 | 127 | 138 | 139 | ||||||||||||||||||
Add: cash distributions from equity method investments | — | 1 | 2 | 5 | 7 | 10 | ||||||||||||||||||
Less: loss (income) from equity method investments | — | — | (1 | ) | 9 | (6 | ) | (2 | ) | |||||||||||||||
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Total earnings | $ | 473 | $ | 1,011 | $ | 898 | $ | 815 | $ | 740 | $ | 718 | ||||||||||||
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Fixed Charges: | ||||||||||||||||||||||||
Interest expense | $ | 56 | $ | 79 | $ | 76 | $ | 78 | $ | 90 | $ | 92 | ||||||||||||
Interest component of rent expense | 28 | 59 | 53 | 49 | 48 | 47 | ||||||||||||||||||
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Total fixed charges | $ | 84 | $ | 138 | $ | 129 | $ | 127 | $ | 138 | $ | 139 | ||||||||||||
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Ratio of earnings to fixed charges | 5.6 | 7.3 | 7.0 | 6.4 | 5.4 | 5.2 | ||||||||||||||||||
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Six Months Ended July 31 | Fiscal Year Ended January 31 | |||||||||||||||||||||||
Science Applications: | 2011 | 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||||
(in millions, except ratios) | ||||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Income from continuing operations before income taxes | $ | 385 | $ | 857 | $ | 746 | $ | 632 | $ | 528 | $ | 548 | ||||||||||||
Add: minority interest in consolidated subsidiaries with fixed charges | — | — | — | — | 3 | 5 | ||||||||||||||||||
Add: fixed charges | 88 | 153 | 151 | 169 | 205 | 141 | ||||||||||||||||||
Add: cash distributions from equity method investments | — | 1 | 2 | 5 | 7 | 10 | ||||||||||||||||||
Less: loss (income) from equity method investments | — | — | (1 | ) | 9 | (6 | ) | (2 | ) | |||||||||||||||
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Total earnings | $ | 473 | $ | 1,011 | $ | 898 | $ | 815 | $ | 737 | $ | 702 | ||||||||||||
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Fixed Charges: | ||||||||||||||||||||||||
Interest expense | $ | 60 | $ | 94 | $ | 98 | $ | 120 | $ | 157 | $ | 94 | ||||||||||||
Interest component of rent expense | 28 | 59 | 53 | 49 | 48 | 47 | ||||||||||||||||||
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Total fixed charges | $ | 88 | $ | 153 | $ | 151 | $ | 169 | $ | 205 | $ | 141 | ||||||||||||
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Ratio of earnings to fixed charges | 5.4 | 6.6 | 5.9 | 4.8 | 3.6 | 5.0 | ||||||||||||||||||
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For purposes of calculating the ratio of earnings to fixed charges, earnings are the amount resulting from adding (a) pretax income from continuing operations, (b) fixed charges, (c) minority interests in consolidated subsidiaries, and (d) cash distributions from equity method investments; and subtracting (e) income (loss) from equity method investments. Fixed charges consist of (a) interest expense inclusive of amortized premiums, discounts and capitalized expenses related to indebtedness and (b) the portion of rental expense deemed representative of interest expense (estimated to be one-third of rental expense). Interest associated with our uncertain tax positions is a component of income tax expense and not fixed charges.