EX-12.1 3 d311261dex121.htm STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Statement of 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 six months ended October 28, 2011 was computed based on Medtronic’s current quarterly report on Form 10-Q. The ratio of earnings to fixed charges for the fiscal years ended April 29, 2011, April 30, 2010, April 24, 2009, April 25, 2008, and April 27, 2007 was computed based on Medtronic’s historical consolidated financial information.

 

     Six
months
ended
October
28,
2011		     Year
ended
April 29,
2011		     Year
ended
April 30,
2010		     Year
ended
April 24,
2009		     Year
ended
April 25,
2008		     Year
ended
April 27,
2007		  

Earnings:

             

Net earnings

    $ 1,692      $ 3,096      $ 3,099      $ 2,070      $ 2,138      $ 2,703   

Income taxes

      383        627        870        370        602        658   

Minority interest loss/(income)

      4        8        7        1        —          —     

Capitalized interest (1)

      (2 )      (4 )      (4 )      (5 )      (10 )      (3 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
   $ 2,077      $ 3,727      $ 3,972      $ 2,436      $ 2,730      $ 3,358   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed Charges:

             

Interest expense (2)

    $ 162      $ 450      $ 402      $ 371      $ 400      $ 383   

Capitalized interest (1)

      2        4        4        5        10        3   

Amortization of debt issuance costs (3)

      8        14        11        15        15        17   

Rent interest factor (4)

      26        44        46        45        41        34   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
   $ 198      $ 512      $ 463      $ 436      $ 466      $ 437   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings before income taxes and fixed charges

    $ 2,275      $ 4,239      $ 4,435      $ 2,872      $ 3,196      $ 3,795   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings to fixed charges

      11        8        10        7        7        9   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(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 in our annual report on Form 10-K for fiscal year ended April 29, 2011 for further information regarding the debt securities.
(4) Approximately one-third of rental expense is deemed representative of the interest factor.