EX-12.1 6 dex121.htm STATEMENT REGARDING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES. Statement regarding computation of ratio of earnings to fixed charges.

Exhibit 12.1 – Statement regarding computation of ratio of earnings to fixed charges

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:

 

     Year Ended September     Six Months
     2005    2006    2007    2008     2009     March
FY09
    March
FY10

Fixed Charges

             

Interest expensed and capitalized interest

   38,038    92,831    86,852    67,967      75,425      35,116      35,448

Debt related amortization

   —      3,108    3,489    3,505      17,467      14,849      3,967

Portion of rents representative of interest factor

   —      —      —      —        —        —        —  

Preferred returns to minority interest shareholders

   —      —      —      —        —        —        —  
                                     

Total Fixed Charges

   38,038    95,939    90,341    71,472      92,892      49,965      39,415
                                     

Earnings

                 

Pre-tax income from continuing operations, before taxes, as reported

   111,480    111,517    115,225    (1,113,861   (262,571   (226,875   55,248
                                     

Add: Noncontrolling interest and equity in earnings of associated companies, net

   12,944    21,970    21,193    10,746      5,299      3,544      3,508
                                     

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

   24,424    133,487    136,418    (1,103,115   (257,272   (223,331   58,756

Add: Fixed charges

   38,038    95,939    90,341    71,472      92,892      49,965      39,415

Add: Amortization of capitalized interest

   —      —      —      —        —        —        —  

Add: Distributed income of associated companies

   7,375    7,375    7,375    5,812      2,000      2,000      1,100

Less: Interest capitalized

   —      —      —      —        —        —        —  

Less: Preference security dividend

   —      —      —      —        —        —        —  

Less: Noncontrolling interest

   160    1,231    1,069    535     179      132      42
                                     

Total earnings (losses) available for fixed charges

   169,677    235,570    233,065    (1,026,366   (162,559   (171,498   99,229
                                     

Ratio of earnings to fixed charges

   4.5    2.5    2.6    (A)      (B)      (C)      2.5

 

(A) The ratio was less than 1.0 for the fiscal year ended September 28, 2008 as earnings were inadequate to cover fixed charges. Additional earnings of approximately $1.1 billion would have been necessary to bring the ratio to 1.0. Income from continuing operations before income taxes, as reported, includes $1.2 billion of asset impairment and other charges. Absent these charges, the ratio of earnings to fixed charges would have been 2.3. These charges are described in our Annual Report on Form 10-K for the fiscal year ended September 28, 2008, which is incorporated by reference herein.
(B) The ratio was less than 1.0 for the fiscal year ended September 27, 2009 as earnings were inadequate to cover fixed charges. Additional earnings of approximately $255 million would have been necessary to bring the ratio to 1.0. Income from continuing operations before income taxes, as reported, includes $347 million of asset impairment and other charges. Absent these charges, the ratio of earnings to fixed charges would have been 2.0. These charges are described in our Annual Report on Form 10-K for the fiscal year ended September 27, 2009, which is incorporated by reference herein.
(C) The ratio was less than 1.0 for the six-months ended March 29, 2009 as earnings were inadequate to cover fixed charges. Additional earnings of approximately $221 million would have been necessary to bring the ratio to 1.0. Income from continuing operations before income taxes, as reported, includes $299 million of asset impairment and other charges. Absent these charges, the ratio of earnings to fixed charges would have been 2.6. These charges are described in our Quarterly Report on Form 10-Q for the period ended March 28, 2010, which is incorporated by reference herein.