EX-12.(1) 7 a2025615zex-12_1.txt EXHIBIT 12(1) EXHIBIT 12.1 SARA LEE CORPORATION AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (in millions except ratios)
July 1, July 3, 2000 1999 (1) ------ ------- Fixed charges: Interest expense $ 252 $ 237 Interest portion of rental expense 63 62 ------ ------ Total fixed charges before capitalized interest 315 299 Capitalized interest 9 3 ------ ------ Total fixed charges $ 324 $ 302 ====== ====== Earnings available for fixed charges: Income before income taxes continuing operations $1,567 $1,570 Less undistributed income in minority owned companies (8) (6) Add minority interest in majority-owned subsidiaries 35 31 Add amortization of capitalized interest 24 23 Add fixed charges before capitalized interest 315 299 ------ ------ Total earnings available for fixed charges $1,933 $1,917 ====== ====== Ratio of earnings to fixed charges 6.0 6.3 ====== ======
(1) During the second quarter of fiscal 1999, the corporation recorded a pre-tax charge of $76 million in connection with the recall of certain of its meat products. During the first quarter of fiscal 1999, the corporation recorded a pre-tax gain of $137 million in connection with the sale of its tobacco business.