<DOCUMENT>
<TYPE>EX-12.1
<SEQUENCE>5
<FILENAME>dex121.txt
<DESCRIPTION>COMPUTATION OF RATIOS OF EARNINGS
<TEXT>
<PAGE>
Exhibit 12.1
SARA LEE CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In millions except ratios)
<TABLE>
<CAPTION>
Fiscal Year Ended (1)
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June 28, June 27, July 3, July 1, June 30,
1997 1998 (2) 1999 (3) 2000 2001 (4)
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<S> <C> <C> <C> <C> <C>
Fixed charges:
Interest expense $ 202 $ 224 $ 237 $ 252 $ 270
Interest portion of rental expense 64 61 62 63 64
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Total fixed charges before capitalized interest 266 285 299 315 334
Capitalized interest 12 10 3 9 14
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Total fixed charges $ 278 $ 295 $ 302 $ 324 $ 348
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Earnings available for fixed charges:
Income (loss) before income taxes continuing operations $ 1,401 ($ 531) $ 1,570 $ 1,567 $ 1,851
Less undistributed income in minority owned companies (7) (6) (6) (8) (2)
Add minority interest in majority-owned subsidiaries 30 25 31 35 51
Add amortization of capitalized interest 23 25 23 24 24
Add fixed charges before capitalized interest 266 285 299 315 334
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Total earnings (losses) available for fixed charges $ 1,713 ($ 202) $ 1,917 $ 1,933 $ 2,258
======= ======= ======= ======= =======
Ratio of earnings (losses) to fixed charges 6.2 (0.7) 6.3 6.0 6.5
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</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. An increase in income
from continuing operations of $497 million in 1998 would have resulted in a
ratio of earnings to fixed charges of 1.0x and an increase in income from
continuing operations of $521 million in 1998 would have resulted in a
ratio of earnings to fixed charges and preferred stock dividend
requirements of 1.0x.
(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.
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