<DOCUMENT>
<TYPE>EX-12.3
<SEQUENCE>8
<FILENAME>dex123.txt
<DESCRIPTION>COMPUTATION OF RATIOS OF EARNINGS
<TEXT>
<PAGE>
Exhibit 12.3
SARA LEE CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND PREFERRED STOCK DIVIDEND REQUIREMENTS
(In millions except ratios)
<TABLE>
<CAPTION>
Quarter
Fiscal Year Ended (1) Ended
------------------------------------------------------- ---------
June 28, June 27, July 3, July 1, June 30, Sept. 29,
1997 1998 (2) 1999 (3) 2000 2001 (4) 2001
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<S> <C> <C> <C> <C> <C> <C>
Fixed charges and preferred stock dividend requirements:
Interest expense $ 202 $ 224 $ 237 $ 252 $ 270 $ 74
Interest portion of rental expense 64 61 62 63 64 14
------- ------- ------- ------- ------- --------
Total fixed charges before capitalized interest 266 285 299 315 334 88
and preferred stock dividend requirements
Capitalized interest 12 10 3 9 14 2
Preferred stock dividend requirements (5) 41 24 20 20 18 4
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Total fixed charges and preferred stock
dividend requirements $ 319 $ 319 $ 322 $ 344 $ 366 $ 94
======= ======= ======= ======= ======= ========
Earnings available for fixed charges and preferred stock
stock dividend requirements:
Income (loss) before income taxes continuing operations $ 1,401 ($ 531) $ 1,570 $ 1,567 $ 1,851 $ 262
Less undistributed income in minority owned companies (7) (6) (6) (8) (2) (4)
Add minority interest in majority-owned subsidiaries 30 25 31 35 51 8
Add amortization of capitalized interest 23 25 23 24 24 6
Add fixed charges before capitalized interest and
preferred stock dividend requirements 266 285 299 315 334 88
------- ------- ------- ------- ------- --------
Total earnings (losses) available for fixed charges
and preferred stock dividend requirements $ 1,713 ($ 202) $ 1,917 $ 1,933 $ 2,258 $ 360
======= ======= ======= ======= ======= ========
Ratio of earnings (losses) to fixed charges and preferred
stock dividend requirements 5.4 (0.6) 6.0 5.6 6.2 3.8
======= ======= ======= ======= ======= ========
</TABLE>
Notes
(1) Our fiscal year ends on the Saturday nearest June 30.
(2) In 1998, we recorded a restructuring provision that reduced income from
continuing operations before income taxes by $2,038.
(3) Fiscal 1999 was a 53-week year. In 1999, we recorded a gain on the sale of
our tobacco business of $137 and a product recall charge of $76 that
resulted in an increase in income from continuing operations before taxes
of $61.
(4) In 2001, we recorded a pre-tax charge of $554 in connection with certain
reshaping actions, a pre-tax gain of $105 in connection with the IPO of
our Coach Inc. subsidiary and a tax-free gain of $862 in connection with
the exchange of our stock for the stock of Coach Inc., that resulted in an
increase in income from continuing operations before taxes of $413.
(5) Preferred stock dividends in the computation have been increased to an
amount representing the pre-tax earnings that would have been required to
cover such dividends.
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