EX-12.1 6 dex121.htm COMPUTATION OF RATION OF EARNINGS Prepared by R.R. Donnelley Financial -- Computation of Ration of Earnings
EXHIBIT 12.1
 
PALM, INC.
 
COMPUTATION OF RATIO OF EARNINGS AVAILABLE TO COVER FIXED CHARGES
 
(in thousands except ratio amounts)
 
    
Fiscal Year Ended
     
Six months ended
  
    
May 25, 1997
     
May 31, 1998
   
May 28, 1999
   
June 2, 2000
   
June 1,
2001
     
December 1, 2000
   
November 30, 2001
  
Income (loss) before income taxes
   
$
(14,208
)
   
$
6,405
   
$
48,116
   
$
77,813
   
$
(524,191
)
   
$
69,508
   
$
(84,763
)
Total fixed charges
   
 
1,331
 
   
 
1,143
   
 
2,258
   
 
4,475
   
 
10,586
 
   
 
2,902
   
 
7,955
 
Total income (loss) before fixed charges
   
$
(12,697
)
   
 
7,548
   
$
50,374
   
$
82,288
   
$
(513,605
)
   
$
72,410
   
$
(76,808
)
    
  
  
  
  
  
  
Interest expense
   
$
—  
 
   
$
—  
   
$
—  
   
$
11
   
$
913
 
   
$
183
   
$
510
 
Amortization of borrowing expenses
   
 
—  
 
   
 
—  
   
 
—  
   
 
—  
   
 
—  
 
   
 
—  
   
 
866
 
Interest attributable to rentals
   
 
1,331
 
   
 
1,143
   
 
2,258
   
 
4,464
   
 
9,673
 
   
 
2,719
   
 
6,579
 
    
  
  
  
  
  
  
Total fixed charges
   
$
1,331
 
   
$
1,143
   
$
2,258
   
$
4,475
   
$
10,586
 
   
$
2,902
   
$
7,955
 
    
  
  
  
  
  
  
Ratio of earnings available to cover fixed charges(1)
   
 
—  
 
   
 
6.60
   
 
22.31
   
 
18.39
   
 
—  
 
   
 
24.95
   
 
—  
 
 
For the purpose of calculating this ratio, earnings consist of our income (loss) before income taxes plus fixed charges. Fixed charges include interest on indebtedness, amortization of borrowing expenses and the portion of rental expense under operating leases deemed by us to be representative of the interest factor. The deficiency of earnings to cover fixed charges for the years ended May 25, 1997 and June 1, 2001 and for the six months ended November 30, 2001 was $15,359,000, $534,777,000 and $92,718,000, respectively.