EX-12.1 3 d341435dex121.htm EXHIBIT 12-1 Exhibit 12-1

Exhibit 12-1

RATIO OF EARNINGS TO FIXED CHARGES

The following table sets forth the historical ratio of our earnings to our fixed charges for the periods indicated:

 

     Dollars in millions
Fiscal Year Ended		  
     12/25/2011     12/26/2010     12/27/2009     12/28/2008     12/30/2007  

Earnings Available for Fixed Charges:

           

Income (loss) from continuing operations, before income taxes, as reported

    $ 653      $ 846      $ 570      $ (7,265 )    $ 1,440   

Add: Noncontrolling interest and income from unconsolidated equity investees

      (11 )      (17 )      (3 )      374        (37 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income (loss) from continuing operations, before income taxes, as adjusted

      642        829        567        (6,891 )      1,403   

Add: Fixed charges

      196        205        205        219        284   

Add: Amortization of capitalized interest

      2        2        2        2        2   

Add: Distributed income of equity investees

      44        51        23        32        50   

Less: Interest capitalized

      —          (1 )      —          —          —     

Less: Preferred returns

      (2 )      (7 )      (7 )      (4 )      (2 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total earnings (losses) available for fixed charges

    $ 882      $ 1,079      $ 790      $ (6,642 )    $ 1,737   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed Charges:

           

Interest on indebtedness, net of capitalized interest(1)

    $ 173      $ 173      $ 176      $ 191      $ 260   

Capitalized interest

      —          1        —          —          —     

Preferred returns to noncontrolling interest shareholders in consolidated subsidiaries

      2        7        7        4        2   

Portion of rents representative of interest factor

      21        24        22        24        22   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed charges

    $ 196      $ 205      $ 205      $ 219      $ 284   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings to fixed charges

      4.5        5.3        3.9        (A )      6.1   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(A) The ratio was less than 1.0 for the fiscal year ended December 28, 2008 as earnings were inadequate to cover fixed charges. Additional earnings of approximately $6.9 billion would have been necessary to bring the ratio to 1.0. Income from continuing operations before income taxes, as reported, includes $7.9 billion of asset impairment and other charges. These charges were non-cash charges and therefore did not impact our ability to cover fixed charges. Absent these charges, the ratio of earnings to fixed charges would have been 5.9.
(1) Interest expense related to unrecognized tax benefits is recorded as a component of income tax expense and is excluded from both fixed charges and pretax income.