Exhibit 12.1
MEDTRONIC, INC. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
The ratio of earnings to fixed charges for the six months ended October 28, 2011 was computed based on Medtronic’s current quarterly report on Form 10-Q. The ratio of earnings to fixed charges for the fiscal years ended April 29, 2011, April 30, 2010, April 24, 2009, April 25, 2008, and April 27, 2007 was computed based on Medtronic’s historical consolidated financial information.
Six months ended October 28, 2011 | Year ended April 29, 2011 | Year ended April 30, 2010 | Year ended April 24, 2009 | Year ended April 25, 2008 | Year ended April 27, 2007 | |||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Net earnings | $ | 1,692 | $ | 3,096 | $ | 3,099 | $ | 2,070 | $ | 2,138 | $ | 2,703 | ||||||||||||
Income taxes | 383 | 627 | 870 | 370 | 602 | 658 | ||||||||||||||||||
Minority interest loss/(income) | 4 | 8 | 7 | 1 | — | — | ||||||||||||||||||
Capitalized interest(1) | (2 | ) | (4 | ) | (4 | ) | (5 | ) | (10 | ) | (3 | ) | ||||||||||||
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$ | 2,077 | $ | 3,727 | $ | 3,972 | $ | 2,436 | $ | 2,730 | $ | 3,358 | |||||||||||||
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Fixed Charges: | ||||||||||||||||||||||||
Interest expense(2) | $ | 162 | $ | 450 | $ | 402 | $ | 371 | $ | 400 | $ | 383 | ||||||||||||
Capitalized interest(1) | 2 | 4 | 4 | 5 | 10 | 3 | ||||||||||||||||||
Amortization of debt issuance costs(3) | 8 | 14 | 11 | 15 | 15 | 17 | ||||||||||||||||||
Rent interest factor(4) | 26 | 44 | 46 | 45 | 41 | 34 | ||||||||||||||||||
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$ | 198 | $ | 512 | $ | 463 | $ | 436 | $ | 466 | $ | 437 | |||||||||||||
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Earnings before income taxes and fixed charges | $ | 2,275 | $ | 4,239 | $ | 4,435 | $ | 2,872 | $ | 3,196 | $ | 3,795 | ||||||||||||
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Ratio of earnings to fixed charges | 11 | 8 | 10 | 7 | 7 | 9 | ||||||||||||||||||
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(1) | Capitalized interest relates to construction projects in process. |
(2) | Interest expense consists of interest on indebtedness. |
(3) | Represents the amortization of debt issuance costs incurred in connection with the Company’s registered debt securities. See Note 8 to the condensed consolidated financial statements in our annual report on Form 10-K for fiscal year ended April 29, 2011 for further information regarding the debt securities. |
(4) | Approximately one-third of rental expense is deemed representative of the interest factor. |