EX-12.1 3 dex121.htm COMPUTATION OF RATIO OF EARNINGS AVAILABLE TO COVER FIXED CHARGES Prepared by R.R. Donnelley Financial -- Computation of Ratio of Earnings Available to Cover Fixed Charges
EXHIBIT 12.1
 
PALM, INC.
 
COMPUTATION OF RATIO OF EARNINGS AVAILABLE TO COVER FIXED CHARGES
 
(in thousands except ratio amounts)
 
    
Fiscal Year Ended
     
Nine Months Ended
  
    
May 25, 1997
     
May 31, 1998
   
May 28, 1999
   
June 2, 2000
   
June 1,
2001
     
March 2, 2001
   
March 1, 2002
  
Income (loss) before income taxes
   
$
(14,208
)
   
$
6,405
   
$
48,116
   
$
77,813
   
$
(524,191
)
   
$
68,458
   
$
(80,428
)
Total fixed charges
   
 
1,331
 
   
 
1,143
   
 
2,258
   
 
4,475
   
 
10,586
 
   
 
6,203
   
 
12,129
 
    
  
  
  
  
  
  
Total income (loss) before fixed charges
   
$
(12,697
)
   
$
7,548
   
$
50,374
   
$
82,288
   
$
(513,605
)
   
$
74,661
   
$
(68,299
)
    
  
  
  
  
  
  
Interest expense
   
$
—  
 
   
$
—  
   
$
—  
   
$
11
   
$
913
 
   
$
273
   
$
1,129
 
Amortization of borrowing expenses
   
 
—  
 
   
 
—  
   
 
—  
   
 
—  
   
 
—  
 
   
 
—  
   
 
1,401
 
Interest attributable to rentals
   
 
1,331
 
   
 
1,143
   
 
2,258
   
 
4,464
   
 
9,673
 
   
 
5,930
   
 
9,599
 
    
  
  
  
  
  
  
Total fixed charges
   
$
1,331
 
   
$
1,143
   
$
2,258
   
$
4,475
   
$
10,586
 
   
$
6,203
   
$
12,129
 
    
  
  
  
  
  
  
Ratio of earnings available to cover fixed charges
   
 
—  
 
   
 
6.60
   
 
22.31
   
 
18.39
   
 
—  
 
   
 
12.04
   
 
—  
 
 
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 nine months ended March 1, 2002 was $15,359,000, $534,777,000 and $92,557,000, respectively.