EX-12.1 3 a03-3098_1ex12d1.htm EX-12.1

Exhibit 12.1

 

MEDTRONIC, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

The ratio of earnings to fixed charges for the three months ended July 25, 2003 and the fiscal years ended April 25, 2003, April 26, 2002, April 27, 2001, April 30, 2000 and 1999 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.(1)

 

 

 

Three
months
ended
July 25,
2003

 

Year ended April 25,
2003

 

Year ended
April 26,
2002

 

Year ended
April 27,
2001(6)

 

Year ended
April 30,
2000

 

Year ended
April 30,
1999

 

Earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before taxes, extraordinary items and cumulative effect of accounting changes

 

$

450.4

 

$

1,599.8

 

$

984.0

 

$

1,046.0

 

$

1,084.2

 

$

466.7

 

Income taxes

 

193.0

 

741.5

 

540.2

 

503.4

 

530.6

 

358.4

 

Minority interest

 

2.4

 

(0.7

)

3.0

 

1.4

 

4.4

 

3.3

 

Amortization of capitalized interest

 

0.1

 

0.1

 

0.1

 

0.1

 

—

 

—

 

Capitalized interest(2)

 

—

 

(0.9

)

(0.3

)

(3.5

)

(0.2

)

—

 

 

 

$

645.9

 

$

2,339.8

 

$

1,527.0

 

$

1,547.4

 

$

1,619.0

 

$

828.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense(3)

 

$

11.2

 

$

47.2

 

$

45.2

 

$

17.6

 

$

14.0

 

$

29.2

 

Capitalized interest(2)

 

—

 

0.9

 

0.3

 

3.5

 

0.2

 

—

 

Amortization of debt
issuance costs(4)

 

—

 

—

 

32.0

 

—

 

—

 

—

 

Rent interest factor(5)

 

4.9

 

18.0

 

16.3

 

15.5

 

14.9

 

14.2

 

 

 

$

16.1

 

$

66.1

 

$

93.8

 

$

36.6

 

$

29.1

 

$

43.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings before income taxes and fixed charges

 

$

662.0

 

$

2,405.9

 

$

1,620.8

 

$

1,584.0

 

$

1,648.1

 

$

871.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges(6)

 

41.1

 

36.4

 

17.3

 

43.3

 

56.6

 

20.1

 

 

(1)                    On December 21, 2000, November 5, 1999, January 28, 1999, January 27, 1999, and September 30, 1998, Medtronic acquired PercuSurge, Inc., Xomed Surgical Products, Inc., Arterial Vascular Engineering, Inc., Sofamor Danek Group, Inc., and Physio-Control International Corporation, respectively.  These five acquisitions were accounted for under the pooling of interests method of accounting, and as a result, the ratios of earnings to fixed charges presented above include the effects of the mergers.

 

(2)                    Capitalized interest consists of interest related to the construction of Medtronic’s new World and European Headquarters, and certain European operation centers.

 

(3)                    Interest expense consists of interest on indebtedness.

 

(4)                    Represents the amortization of debt issuance costs incurred in connection with the Company’s completion of a $2,012.5 million private placement of 1.25% Contingent Convertible Debentures on September 17, 2001.  As of July 25, 2003, $1,973.8 million of the contingent convertible debentures were outstanding.

 

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

 

(6)                    In April 2001, Medtronic changed its fiscal year end from April 30 to the last Friday in April.