EX-12.1 2 dex121.htm CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES Calculation of Ratio of Earnings to Fixed Charges

Exhibit 12.1

Computation of Ratio of Earnings to Fixed Charges

 

(dollars in millions)    Six
Months
Ending
    Fiscal Years  
     April 2,
2011
    2010     2009     2008     2007     2006  

Earnings:

            

Income (loss) from continuing operations before income taxes

   $ 686      $ 1,203      $ (543   $ 154     $ 410     $ (268

Add: Fixed charges

     157        360        388        272       278       325  

Add: Amortization of capitalized interest

     2        3        4        4       3       3  

Less: Capitalized interest

     (3     (11     (3     (3     (2     (8
                                                

Total adjusted earnings

     842        1,555        (154     427       689       52  

Fixed Charges:

            

Interest

     99        240        289        212       228       263  

Capitalized interest

     3        11        3        3       2       8  

Amortization of debt discount expense

     24        46        38        3       4       5  

Rentals at computed interest factor (1)

     31        63        58        54       44       49  
                                                

Total fixed charges

   $ 157      $ 360      $ 388      $ 272     $ 278     $ 325  

Ratio of Earnings to Fixed Charges

     5.36        4.32          1.57       2.48    

Insufficient Coverage

       $ 542          $ 273  

 

(1) Amounts represent those portions of rent expense (one-third) that are reasonable approximations of interest costs.