EX-12.1 2 dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS Computation of Ratio of Earnings to Fixed Charges and Preferred Stock Dividends

EXHIBIT 12.1

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

AND PREFERRED STOCK DIVIDENDS

(in millions, except ratio amounts)

 

     Year-to-date ended  
     September 8,
2006
    September 9,
2005
 

Income (loss) from continuing operations before income taxes

   $ 162     $ 91  

Add (deduct):

    

Fixed charges

     350       377  

Capitalized interest

     (2 )     (3 )

Amortization of capitalized interest

     4       4  

Minority interest in consolidated affiliates

     30       12  

Equity in (earnings) losses related to certain 50% or less owned affiliates

     8       1  

Distributions from equity investments

     3       2  

Dividends on preferred stock

     (12 )     (21 )

Issuance costs of redeemed preferred stock

     (6 )     (4 )
                

Adjusted earnings

   $ 537     $ 459  
                

Fixed charges:

    

Interest on indebtedness and amortization of deferred financing costs

   $ 298     $ 317  

Capitalized interest

     2       3  

Dividends on preferred stock

     12       21  

Portion of rents representative of the interest factor

     32       32  

Issuance costs of redeemed preferred stock

     6       4  
                

Total fixed charges and preferred stock dividends

   $ 350     $ 377  
                

Ratio of earnings to fixed charges and preferred stock dividends

     1.5       1.2