Exhibit 12.1
RATIO OF EARNINGS TO FIXED CHARGES
The following table sets forth the historical ratio of our earnings to our fixed charges for the periods indicated:
| Dollars in millions | ||||||||||||||||||||
| Fiscal Year Ended | ||||||||||||||||||||
| 12/28/2008 | 12/30/2007 | 12/31/2006 | 12/25/2005 | 12/26/2004 | ||||||||||||||||
Earnings Available for Fixed Charges: | ||||||||||||||||||||
Income (loss) from continuing operations, before income taxes, as reported | $ | (7,306 | ) | $ | 1,449 | $ | 1,682 | $ | 1,776 | $ | 1,915 | |||||||||
Add: Minority interest expense and income from unconsolidated equity investees, net | 383 | (34 | ) | (35 | ) | (2 | ) | (12 | ) | |||||||||||
Income (loss) from continuing operations, before income taxes, as adjusted | (6,923 | ) | 1,415 | 1,647 | 1,774 | 1,903 | ||||||||||||||
Add: Fixed charges | 220 | 284 | 315 | 237 | 166 | |||||||||||||||
Add: Amortization of capitalized interest | 2 | 2 | 2 | 2 | 2 | |||||||||||||||
Add: Distributed income of equity investors | 29 | 42 | 51 | 10 | 12 | |||||||||||||||
Less: Interest capitalized | — | — | (2 | ) | (3 | ) | (5 | ) | ||||||||||||
Less: Preferred returns | (4 | ) | (2 | ) | (3 | ) | (1 | ) | — | |||||||||||
Total earnings (losses) available for fixed charges | $ | (6,676 | ) | $ | 1,741 | $ | 2,010 | $ | 2,019 | $ | 2,078 | |||||||||
Fixed Charges: | ||||||||||||||||||||
Interest on indebtedness, net of capitalized interest | $ | 191 | $ | 260 | $ | 288 | $ | 211 | $ | 141 | ||||||||||
Capitalized interest | — | — | 2 | 3 | 5 | |||||||||||||||
Preferred returns to minority interest shareholders in consolidated subsidiaries | 4 | 2 | 3 | 1 | — | |||||||||||||||
Portion of rents representative of interest factor | 25 | 22 | 22 | 22 | 20 | |||||||||||||||
Total fixed charges | $ | 220 | $ | 284 | $ | 315 | $ | 237 | $ | 166 | ||||||||||
Ratio of earnings to fixed charges(1) | (A | ) | 6.1 | 6.4 | 8.5 | 12.5 | ||||||||||||||
| (A) | The ratio was less than 1.0 for the fiscal year ended December 28, 2008 as earnings were inadequate to cover fixed charges. Additional earnings of approximately $6.9 billion would have been necessary to bring the ratio to 1.0. Income from continuing operations before income taxes, as reported, includes $7.98 billion of asset impairment and other charges. Absent these charges, the ratio of earnings to fixed charges would have been 5.9. These charges are described in Note 3 to the consolidated financial statements contained in our 2008 Annual Report on Form 10-K, which is incorporated by reference herein. |
| (1) | Interest expense related to unrecognized tax benefits is recorded as a component of income tax expense and is excluded from both fixed charges and pretax income. |
