EX-12.(2) 8 a2025615zex-12_2.txt EXHIBIT 12(2) EXHIBIT 12.2 SARA LEE CORPORATION AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDEND REQUIREMENTS (in millions except ratios)
July 1, July 3, 2000 1999 (1) ------- ------- Fixed charges and preferred stock dividend requirements: Interest expense $ 252 $ 237 Interest portion of rental expense 63 62 ------- ------- Total fixed charges before capitalized interest 315 299 and preferred stock dividend requirements Capitalized interest 9 3 Preferred stock dividend requirements (2) 20 20 ------- ------- Total fixed charges and preferred stock dividend requirements $ 344 $ 322 ======= ======= Earnings available for fixed charges and preferred stock stock dividend requirements: 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 and preferred stock dividend requirements 315 299 ------- ------- Total earnings available for fixed charges and preferred stock dividend requirements $ 1,933 $ 1,917 ======= ======= Ratio of earnings to fixed charges and preferred stock dividend requirements 5.6 6.0 ======= =======
(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. (2) Preferred stock dividends in the computation have been increased to an amount representing the pretax earnings that would have been required to cover such dividends.