EX-12.1 2 dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

EXHIBIT 12.1

SARA LEE CORPORATION AND SUBSIDIARIES

Computation of Ratio of Earnings to Fixed Charges

(in millions, except ratios)

(Unaudited)

 

     Thirty-nine Weeks Ended  
     April 1,
2006
    April 2,
2005
 

Fixed charges:

    

Interest expense

   $ 226     $ 213  

Interest portion of rental expense

     49       43  
                

Total fixed charges before capitalized interest

     275       256  

Capitalized interest

     13       5  
                

Total fixed charges

   $ 288     $ 261  
                

Earnings available for fixed charges:

    

Income from continuing operations before income taxes

   $ 703 (a)   $ 979 (b)

Less undistributed (loss) income in minority-owned companies

     (3 )     (1 )

Add minority interest in majority-owned subsidiaries

     9       6  

Add amortization of capitalized interest

     11       11  

Add fixed charges before capitalized interest

     275       256  
                

Total earnings available for fixed charges

   $ 995     $ 1,251  
                

Ratio of earnings to fixed charges

     3.5       4.8  
                

(a) In the first nine months of fiscal 2006, the corporation recorded a charge of $43 million in income from continuing operations before income taxes in connection with certain restructuring activities. Also, during the first nine months of fiscal 2006, the corporation recognized $114 million of contingent sales proceeds from the disposal of its European tobacco business in 1999.
(b) In the first nine months of fiscal 2005, the corporation recorded income of $32 million in income from continuing operations before income taxes in connection with certain restructuring activities. Also, during the first nine months of fiscal 2005, the corporation recognized $117 million of contingent sales proceeds from the disposal of its European tobacco business in 1999.