EX-12.1 5 f74092ex12-1.txt EXHIBIT 12.1 1 EXHIBIT 12.1 Lam Research Corporation Computation of Ratio of Earnings to Fixed Charges (In thousands, except ratio data) Pro Forma
Year ended ---------------------------------------------------------------- June 30, June 25, 1996 1997 1998 1999 2000 ---------------------------------------------------------------- CONSOLIDATED EARNINGS Income (loss) before taxes (1)** 216,399 (60,859) (179,125) (112,913) 236,813 Fixed Charges per below 22,576 24,650 37,208 33,958 33,168 ---------------------------------------------------------------- 238,975 (36,209) (141,917) (78,955) 269,981 ---------------------------------------------------------------- FIXED CHARGES Interest expense 8,051 5,222 17,102 18,368 18,705 Interest portion of annual rent expense 14,525 19,428 18,606 13,790 12,513 Amortization of Debenture Costs - - 1,500 1,800 1,950 ---------------------------------------------------------------- 22,576 24,650 37,208 33,958 33,168 ---------------------------------------------------------------- Earnings to fixed charges (deficit) ratio (2) 10.6 (1.5) (3.8) (2.3) 8.1 ================================================================
**Includes Ontrak Income before taxes for FY96 & FY97
Nine Months Ended ----------------------- March 26, March 25, 2000 2001(3) ----------------------- CONSOLIDATED EARNINGS Income (loss) before taxes 148,033 262,832 Fixed Charges per below 24,327 28,801 ----------------------- 172,360 291,633 ----------------------- FIXED CHARGES Interest expense 13,237 15,374 Interest portion of annual rent expense 9,740 12,227 Amortization of Debenture Costs 1,350 1,200 ----------------------- 24,327 28,801 ----------------------- Earnings to fixed charges (deficit) ratio 7.1 10.1 =======================
(1) During fiscal 1997, Lam recorded one-time charges and other significant adjustments totaling approximately $78 million on a pre-tax basis for restructuring costs; inventory, product warranty and other adjustments; and bad debt reserves. During fiscal 1998, Lam recorded one-time charges and other significant adjustments totaling approximately $167 million on a pre-tax basis for restructuring and merger costs. During fiscal 1999, Lam recorded restructuring charges of $53.4 million. (2) For purposes of calculating the ratio of earnings to fixed charges, (i) earnings consist of consolidated income (loss) before income taxes plus fixed charges and (ii) fixed charges consist of interest expense incurred, including capital leases, amortization of debenture costs and the portion of rental expense under operating leases deemed by the Company to be representative of the interest factor in rent expense. (3) On a restated basis, reflecting the application of SAB 101 since the beginning of fiscal 2001, the ratio of earnings to fixed charges was 6.8 for the nine months ended March 25, 2001. As restated for SAB 101, consolidated earnings before taxes is $165.5 million. Fixed charges are not impacted by the application of SAB 101.