EX-12 2 dex12.htm COMPUTATION OF EARNINGS TO FIXED CHARGES Computation of Earnings to Fixed Charges

EXHIBIT 12

 

COMPUTATION OF EARNINGS TO FIXED CHARGES RATIO

(in thousands of dollars, except ratio data)

 

     Year Ended

 
     Dec 28, 2008

    Dec 30, 2007

    Dec 31, 2006

 

Fixed Charge Computation

                        

Interest Expenses:

                        

Net interest expense

   $ 157,385     $ 197,997     $ 93,664  

Plus Capitalized interest

     192       468       2,148  
    


 


 


Gross interest

     157,577       198,465       95,812  

Interest on Unrecognized Tax Benefits (1)

     (9,478 )     (7,270 )     —    

Amortization of debt discount

     (4,911 )     (2,352 )     (1,174 )

Interest Component of Rent Expense

     6,098       5,679       5,287  
    


 


 


Total Fixed Charges

   $ 149,286     $ 194,522     $ 99,925  
    


 


 


Earnings Computation

                        

Income from Continuing Operations Before Income Taxes

   $ 22,085     $ (2,883,191 )   $ 270,885  

(Earnings) Losses of Equity Investments

     14,021       36,899       (4,951 )

Impairment Related Charge Recorded by Equity Investee (2)

     16,947       —         —    

Interest on Unrecognized Tax Benefits

     9,478       7,270       —    

Distributed Income of Equity Investees

     1,740       7,424       4,345  

Add: Fixed Charges

     149,286       194,522       99,925  

Less: Capitalized Interest

     (192 )     (468 )     (2,148 )
    


 


 


Total Earnings as Adjusted

   $ 213,365     $ (2,637,544 )   $ 368,056  
    


 


 


Ratio Of Earnings to Fixed Charges (3)

     1.43       —         3.68  

(1) The Company began recording the interest on unrecognized tax benefits in interest expense in fiscal 2007 when it adopted FIN 48.
(2) Reflects the Company’s portion of loss related to an impairment and recorded in “Write-down of investments and land held for sale” in the Consolidated Statement of Income.
(3) Earnings were inadequate to cover fixed charges by $2.8 billion for the year ended December 30, 2007, as a result of non-cash impairment charges of $3.0 billion.

 

The Company had no registered debt securities prior to the Acquisition on June 27, 2006.