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 | ||||||||||||||||||||
| 12/25/2011 | 12/26/2010 | 12/27/2009 | 12/28/2008 | 12/30/2007 | ||||||||||||||||
Earnings Available for Fixed Charges: | ||||||||||||||||||||
Income (loss) from continuing operations, before income taxes, as reported | $ | 653 | $ | 846 | $ | 570 | $ | (7,265 | ) | $ | 1,440 | |||||||||
Add: Noncontrolling interest and income from unconsolidated equity investees | (11 | ) | (17 | ) | (3 | ) | 374 | (37 | ) | |||||||||||
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Income (loss) from continuing operations, before income taxes, as adjusted | 642 | 829 | 567 | (6,891 | ) | 1,403 | ||||||||||||||
Add: Fixed charges | 196 | 205 | 205 | 219 | 284 | |||||||||||||||
Add: Amortization of capitalized interest | 2 | 2 | 2 | 2 | 2 | |||||||||||||||
Add: Distributed income of equity investees | 44 | 51 | 23 | 32 | 50 | |||||||||||||||
Less: Interest capitalized | — | (1 | ) | — | — | — | ||||||||||||||
Less: Preferred returns | (2 | ) | (7 | ) | (7 | ) | (4 | ) | (2 | ) | ||||||||||
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Total earnings (losses) available for fixed charges | $ | 882 | $ | 1,079 | $ | 790 | $ | (6,642 | ) | $ | 1,737 | |||||||||
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Fixed Charges: | ||||||||||||||||||||
Interest on indebtedness, net of capitalized interest(1) | $ | 173 | $ | 173 | $ | 176 | $ | 191 | $ | 260 | ||||||||||
Capitalized interest | — | 1 | — | — | — | |||||||||||||||
Preferred returns to noncontrolling interest shareholders in consolidated subsidiaries | 2 | 7 | 7 | 4 | 2 | |||||||||||||||
Portion of rents representative of interest factor | 21 | 24 | 22 | 24 | 22 | |||||||||||||||
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Total fixed charges | $ | 196 | $ | 205 | $ | 205 | $ | 219 | $ | 284 | ||||||||||
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Ratio of earnings to fixed charges | 4.5 | 5.3 | 3.9 | (A | ) | 6.1 | ||||||||||||||
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| (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 $7.9 billion of asset impairment and other charges. These charges were non-cash charges and therefore did not impact our ability to cover fixed charges. Absent these charges, the ratio of earnings to fixed charges would have been 5.9. |
| (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. |
