EX-12.1 2 exhibit121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Exhibit 12.1


Exhibit 12.1
KLA-Tencor Corporation
Computation of Ratio of Earnings to Fixed Charges
 
 
Fiscal year ended June 30,
 
(In thousands, except ratios)
 
2011
 
 
2010 
 
 
2009 
 
 
2008 
 
 
2007 
 
Earnings (losses):
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
$
1,110,066

 
$
291,181

 
$
(602,531
)
 
$
560,234

 
$
677,235

Add back fixed charges:
 
 
 
 
 
 
 
 
 
Interest expense
54,328

 
54,517

 
55,339

 
10,767

 
2,781

Amortization of bond issuance costs
735

 
735

 
735

 
123

 
—

Interest portion of rental expense
2,834

 
3,687

 
4,114

 
3,824

 
3,243

Total adjusted earnings (losses)
$
1,167,963

 
$
350,120

 
$
(542,343
)
 
$
574,948

 
$
683,259

 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
Interest expense
$
54,328

 
$
54,517

 
$
55,339

 
$
10,767

 
$
2,781

Amortization of bond issuance costs
735

 
735

 
735

 
123

 
—

Interest portion of rental expense
2,834

 
3,687

 
4,114

 
3,824

 
3,243

 
 
 
 
 
 
 
 
 
 
Total fixed charges
$
57,897

 
$
58,939

 
$
60,188

 
$
14,714

 
$
6,024

 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
20.2

 
5.9

 
(a)

 
39.1

 
113.4

__________________ 
(a) Earnings were inadequate to cover the fixed charges by $602.5 million in the fiscal year ended June 30, 2009.
For purposes of calculating the ratio of earnings to fixed charges, earnings is the amount resulting from adding earnings before income taxes, plus fixed charges. Fixed charges for these purposes include interest expense, amortization of bond issuance costs, and one-third of rental expense, which KLA-Tencor considers to be a reasonable approximation of the interest factor included in rental expense.