Exhibit 12.1
Computation of Ratio of Earnings to Fixed Charges
(In millions, except ratio)
Quarter Ended | Fiscal Year | |||||||||||||||||||||||||||||||||||||||||||||||
March 27, 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||||||||||||||||||||||||||
EARNINGS | ||||||||||||||||||||||||||||||||||||||||||||||||
Earnings from continuing operations before income taxes | $ | 786 | $ | 3,826 | $ | 4,230 | $ | 4,626 | $ | 4,310 | $ | 3,546 | ||||||||||||||||||||||||||||||||||||
Interest expense | 85 | 345 | 308 | 332 | 341 | 361 | ||||||||||||||||||||||||||||||||||||||||||
Distributed (undistributed) earnings of 50% and less than 50% owned companies, net | 10 | (81 | ) | (60 | ) | (43 | ) | (57 | ) | (20 | ) | |||||||||||||||||||||||||||||||||||||
Portion of rents representative of an interest factor and other | 12 | 48 | 53 | 48 | 44 | 48 | ||||||||||||||||||||||||||||||||||||||||||
Adjusted earnings from continuing operations before income taxes | $ | 893 | $ | 4,138 | $ | 4,531 | $ | 4,963 | $ | 4,638 | $ | 3,935 | ||||||||||||||||||||||||||||||||||||
FIXED CHARGES | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | $ | 85 | $ | 345 | $ | 308 | $ | 332 | $ | 341 | $ | 361 | ||||||||||||||||||||||||||||||||||||
Portion of rents representative of an interest factor and other | 12 | 48 | 53 | 48 | 44 | 48 | ||||||||||||||||||||||||||||||||||||||||||
Total fixed charges | $ | 97 | $ | 393 | $ | 361 | $ | 380 | $ | 385 | $ | 409 | ||||||||||||||||||||||||||||||||||||
RATIO OF EARNINGS TO FIXED CHARGES | 9.2 | 10.5 | 12.6 | 13.1 | 12.0 | 9.6 | ||||||||||||||||||||||||||||||||||||||||||
Our computation of the ratio of earnings from continuing operations to fixed charges includes our consolidated subsidiaries and companies in which we own at least 20% but less than or equal to 50% of the equity. “Earnings” are determined by adding “total fixed charges,” excluding interest capitalized, to earnings from continuing operations before income taxes, eliminating equity in undistributed earnings and adding back losses of companies in which we own at least 20% but less than or equal to 50% of the equity. “Total fixed charges” consists of interest on all indebtedness, amortization of debt discount or premium, interest capitalized and an interest factor attributable to rents.