EX-12.1 4 medtronic070957_ex12-1.htm COMPUTATION OF RATIO EARNINGS TO FIXED CHARGES Medtronic, Inc. Exhibit 12.1 to Form 10-Q

Exhibit 12.1

 

MEDTRONIC, INC. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

The ratio of earnings to fixed charges for the nine months ended January 26, 2007 and the fiscal years ended April 28, 2006, April 29, 2005, April 30, 2004, April 25, 2003 and April 26, 2002 was computed based on Medtronic’s historical consolidated financial information included in Medtronic’s most recent Annual Report incorporated by reference on Form 10-K.

 

 

 

Nine months
ended January
26, 2007

 

Year ended
April 28,
2006

 

Year ended
April 29,
2005

 

Year ended
April 30,
2004

 

Year ended
April 25,
2003

 

Year ended
April 26,
2002

 

Earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings

 

$

1,990

 

$

2,547

 

$

1,804

 

$

1,959

 

$

1,600

 

$

984

 

Income taxes

 

 

670

 

 

615

 

 

740

 

 

838

 

 

742

 

 

540

 

Minority interest (loss)/income

 

 

—

 

 

—

 

 

(1

)

 

3

 

 

(1

)

 

3

 

Capitalized interest(1)

 

 

(2

)

 

(3

)

 

(1

)

 

—

 

 

(1

)

 

—

 

 

 

$

2,658

 

$

3,159

 

$

2,542

 

$

2,800

 

$

2,340

 

$

1,527

 

Fixed Charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense(2)

 

$

161

 

$

116

 

$

55

 

$

56

 

$

47

 

$

45

 

Capitalized interest(1)

 

 

2

 

 

3

 

 

1

 

 

—

 

 

1

 

 

1

 

Amortization of debt issuance costs(3)

 

 

11

 

 

4

 

 

1

 

 

—

 

 

—

 

 

32

 

Rent interest factor(4)

 

 

25

 

 

26

 

 

24

 

 

21

 

 

18

 

 

16

 

 

 

$

199

 

$

149

 

$

81

 

$

77

 

$

66

 

$

94

 

Earnings before income taxes and fixed charges

 

$

2,857

 

$

3,308

 

$

2,623

 

$

2,877

 

$

2,406

 

$

1,621

 

Ratio of earnings to fixed charges

 

 

14

 

 

22

 

 

32

 

 

37

 

 

36

 

 

17

 

 

 

(1)

Capitalized interest relates to construction projects in process.

(2)

Interest expense consists of interest on indebtedness.

(3)

Represents the amortization of debt issuance costs incurred in connection with the Company’s registered debt securities. See Note 8 to the condensed consolidated financial statements for further information regarding the debt securities.

(4)

Approximately one-third of rental expense is deemed representative of the interest factor.