EX-12.1 6 dex121.htm COMPUTATION OF RATIOS OF FIXED EARNINGS COMPUTATION OF RATIOS OF FIXED EARNINGS
EXHIBIT 12.1
 
SARA LEE CORPORATION AND SUBSIDIARIES
 
Computation of Ratio of Earnings to Fixed Charge
(in millions, except ratios)
 
    
Fiscal Year Ended
  
    
June 29, 2002(1)
     
June 30, 2001(2)
     
July 1, 2000
     
July 3,
1999(3)
     
June 27, 1998(4)
  
Fixed charges:
                                             
Interest expense
   
$
304
 
   
$
270
 
   
$
252
 
   
$
237
 
   
$
224
 
Interest portion of rental expense
   
 
60
 
   
 
64
 
   
 
63
 
   
 
62
 
   
 
61
 
    
  
  
  
  
Total fixed charges before capitalized interest and preference security dividends
   
 
364
 
   
 
334
 
   
 
315
 
   
 
299
 
   
 
285
 
Preference security dividends of consolidated subsidiaries
   
 
21
 
   
 
36
 
   
 
35
 
   
 
32
 
   
 
35
 
Capitalized interest
   
 
7
 
   
 
14
 
   
 
9
 
   
 
3
 
   
 
10
 
    
  
  
  
  
Total fixed charges
   
$
392
 
   
$
384
 
   
$
359
 
   
$
334
 
   
$
330
 
    
  
  
  
  
Earnings available for fixed charges:
                                             
Income before income taxes continuing operations
   
$
1,185
 
   
$
1,851
 
   
$
1,567
 
   
$
1,570
 
   
$
(531
)
Less undistributed income in minority-owned companies
   
 
(3
)
   
 
(2
)
   
 
(8
)
   
 
(6
)
   
 
(6
)
Add minority interest in majority-owned subsidiaries
   
 
20
 
   
 
27
 
   
 
13
 
   
 
12
 
   
 
6
 
Add amortization of capitalized interest
   
 
24
 
   
 
24
 
   
 
24
 
   
 
23
 
   
 
25
 
Add fixed charges before capitalized interest and
preference security dividends
   
 
364
 
   
 
334
 
   
 
315
 
   
 
299
 
   
 
285
 
    
  
  
  
  
Total earnings available for fixed charges
   
$
1,590
 
   
$
2,234
 
   
$
1,911
 
   
$
1,898
 
   
$
(221
)
    
  
  
  
  
Ratio of earnings to fixed charges
   
 
4.1
 
   
 
5.8
 
   
 
5.3
 
   
 
5.7
 
   
 
(0.7
)
    
  
  
  
  
 
(1)
 
In fiscal 2002, the corporation recorded a pretax charge of $170 million in connection with certain reshaping actions.
 
(2)
 
In fiscal 2001, the corporation recorded a pretax charge of $554 million in connection with certain reshaping actions, a pretax gain of $105 million in connection with the initial public offering of its Coach Inc. subsidiary and a tax-free gain of $862 million in connection with the exchange of its stock for the stock of Coach Inc., that resulted in an increase in income from continuing operations before taxes of $413 million.
 
(3)
 
In fiscal 1999, the corporation recorded a gain of $137 million on the sale of its tobacco business and a product recall charge of $76 million that resulted in an increase of income from continuing operations before taxes of $61 million.
 
(4)
 
In fiscal 1998, the corporation recorded a restructuring provision that reduced income from continuing operations before taxes by $2,038 million.