Exhibit 12.1 – Statement regarding computation of ratio of earnings to fixed charges
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:
Year Ended September | Six Months | ||||||||||||||||
2005 | 2006 | 2007 | 2008 | 2009 | March FY09 | March FY10 | |||||||||||
Fixed Charges | |||||||||||||||||
Interest expensed and capitalized interest | 38,038 | 92,831 | 86,852 | 67,967 | 75,425 | 35,116 | 35,448 | ||||||||||
Debt related amortization | — | 3,108 | 3,489 | 3,505 | 17,467 | 14,849 | 3,967 | ||||||||||
Portion of rents representative of interest factor | — | — | — | — | — | — | — | ||||||||||
Preferred returns to minority interest shareholders | — | — | — | — | — | — | — | ||||||||||
Total Fixed Charges | 38,038 | 95,939 | 90,341 | 71,472 | 92,892 | 49,965 | 39,415 | ||||||||||
Earnings | |||||||||||||||||
Pre-tax income from continuing operations, before taxes, as reported | 111,480 | 111,517 | 115,225 | (1,113,861 | ) | (262,571 | ) | (226,875 | ) | 55,248 | |||||||
Add: Noncontrolling interest and equity in earnings of associated companies, net | 12,944 | 21,970 | 21,193 | 10,746 | 5,299 | 3,544 | 3,508 | ||||||||||
Income (loss) from continuing operations, before income taxes, as adjusted | 24,424 | 133,487 | 136,418 | (1,103,115 | ) | (257,272 | ) | (223,331 | ) | 58,756 | |||||||
Add: Fixed charges | 38,038 | 95,939 | 90,341 | 71,472 | 92,892 | 49,965 | 39,415 | ||||||||||
Add: Amortization of capitalized interest | — | — | — | — | — | — | — | ||||||||||
Add: Distributed income of associated companies | 7,375 | 7,375 | 7,375 | 5,812 | 2,000 | 2,000 | 1,100 | ||||||||||
Less: Interest capitalized | — | — | — | — | — | — | — | ||||||||||
Less: Preference security dividend | — | — | — | — | — | — | — | ||||||||||
Less: Noncontrolling interest | 160 | 1,231 | 1,069 | 535 | 179 | 132 | 42 | ||||||||||
Total earnings (losses) available for fixed charges | 169,677 | 235,570 | 233,065 | (1,026,366 | ) | (162,559 | ) | (171,498 | ) | 99,229 | |||||||
Ratio of earnings to fixed charges | 4.5 | 2.5 | 2.6 | (A) | (B) | (C) | 2.5 |
(A) | The ratio was less than 1.0 for the fiscal year ended September 28, 2008 as earnings were inadequate to cover fixed charges. Additional earnings of approximately $1.1 billion would have been necessary to bring the ratio to 1.0. Income from continuing operations before income taxes, as reported, includes $1.2 billion of asset impairment and other charges. Absent these charges, the ratio of earnings to fixed charges would have been 2.3. These charges are described in our Annual Report on Form 10-K for the fiscal year ended September 28, 2008, which is incorporated by reference herein. |
(B) | The ratio was less than 1.0 for the fiscal year ended September 27, 2009 as earnings were inadequate to cover fixed charges. Additional earnings of approximately $255 million would have been necessary to bring the ratio to 1.0. Income from continuing operations before income taxes, as reported, includes $347 million of asset impairment and other charges. Absent these charges, the ratio of earnings to fixed charges would have been 2.0. These charges are described in our Annual Report on Form 10-K for the fiscal year ended September 27, 2009, which is incorporated by reference herein. |
(C) | The ratio was less than 1.0 for the six-months ended March 29, 2009 as earnings were inadequate to cover fixed charges. Additional earnings of approximately $221 million would have been necessary to bring the ratio to 1.0. Income from continuing operations before income taxes, as reported, includes $299 million of asset impairment and other charges. Absent these charges, the ratio of earnings to fixed charges would have been 2.6. These charges are described in our Quarterly Report on Form 10-Q for the period ended March 28, 2010, which is incorporated by reference herein. |