EX-12.1 15 medtronic092639s2_ex12-1.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

Exhibit 12.1

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

          The ratio of earnings to fixed charges for the fiscal years ended April 24, 2009, April 25, 2008, April 27, 2007, April 28, 2006, April 29, 2005, and April 30, 2004 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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended
April 24,
2009

 

Year ended
April 25,
2008

 

Year ended
April 27,
2007

 

Year ended
April 28,
2006

 

Year ended
April 29,
2005

 

Year ended
April 30,
2004

 

Earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings

 

$

2,169

 

$

2,231

 

$

2,802

 

$

2,547

 

$

1,804

 

$

1,959

 

Income taxes

 

 

425

 

 

654

 

 

713

 

 

614

 

 

740

 

 

838

 

Minority interest (loss)/income

 

 

1

 

 

—

 

 

—

 

 

—

 

 

(1

)

 

3

 

Capitalized interest(1)

 

 

(5

)

 

(10

)

 

(3

)

 

(3

)

 

(1

)

 

—

 

 

 

$

2,590

 

$

2,875

 

$

3,512

 

$

3,158

 

$

2,542

 

$

2,800

 

Fixed Charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense(2)

 

$

217

 

$

255

 

$

228

 

$

116

 

$

55

 

$

56

 

Capitalized interest(1)

 

 

5

 

 

10

 

 

3

 

 

3

 

 

1

 

 

—

 

Amortization of debt
issuance costs(3)

 

 

12

 

 

12

 

 

14

 

 

4

 

 

1

 

 

—

 

Rent interest factor(4)

 

 

45

 

 

41

 

 

34

 

 

26

 

 

24

 

 

21

 

 

 

$

279

 

$

318

 

$

279

 

$

149

 

$

81

 

$

77

 

Earnings before income taxes
and fixed charges

 

$

2,869

 

$

3,193

 

$

3,791

 

$

3,307

 

$

2,623

 

$

2,877

 

Ratio of earnings to fixed charges

 

 

10

 

 

10

 

 

14

 

 

22

 

 

32

 

 

37

 

(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 consolidated financial statements for further information regarding the debt securities.

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