EX-12.1 7 dex121.txt STATEMENT REGARDING COMPUTATION OF EARNINGS EXHIBIT 12.1 Smithfield Foods, Inc and Subsidiaries Ratio of Earnings to Fixed Charges (Dollars in thousands)
52 weeks ended 13 Weeks Ended Fiscal Years --------- ------------------- ------------------------------------------------------ July 29, July 29, July 30, April 29, April 30, May 2, May 3, April 27, 2001 2001 2000 2001 2000 1999 1998 1997 --------- ------------------- ------------------------------------------------------ Earnings: Income from continuing operations before income taxes $ 378,846 $ 93,286 $ 71,758 $357,318 $119,987 $ 143,438 $ 80,962 $ 67,677 Nonrecurring (gain)/loss * (78,615) (2,008) (76,607) 12,600 Interest expense 85,222 19,636 23,388 88,974 71,944 40,521 31,891 26,211 Interest factor of rentals 11,359 2,848 3,617 12,128 9,953 7,249 7,203 6,892 Amortization of debt costs 1,093 259 315 1,149 868 904 551 142 --------- -------------------- ----------------------------------------------------- Earnings as Adjusted $ 397,905 $114,021 $ 99,078 $382,962 $202,752 $ 192,112 $ 133,207 $ 100,922 ========= ==================== ===================================================== Fixed Charges: Interest expense $ 85,222 $ 19,636 $ 23,388 $ 88,974 $ 71,944 $ 40,521 $ 31,891 $ 26,211 Capitalized interest 2,569 514 592 2,647 3,293 2,377 2,530 2,640 Interest factor of rentals 11,359 2,848 3,617 12,128 9,953 7,249 7,203 6,892 Amortization of debt costs 1,093 259 315 1,149 868 904 551 142 --------- ------------------- ----------------------------------------------------- Fixed Charges $ 100,243 $ 23,257 $ 27,912 $104,898 $ 86,058 $ 51,051 $ 42,175 $ 35,885 ========= =================== ===================================================== Ratio of Earnings to Fixed Charges 4.0x 4.9x 3.5x 3.7x 2.4x 3.8x 3.2x 2.8x ========= =================== =====================================================
* Reflects a nonrecurring charge of $12.6 million for the fiscal year ended May 3, 1998 related to civil penalties in an environmental case and nonrecurring gains of $79.0 million for the fiscal year ended April 29, 2001, $7.0 million for the 13 weeks ended July 29, 2001, and $86.0 million for the 52 weeks ended July 29, 2001 on the sale of shares of IBP, inc common stock and a $5.1 million gain on the sale of a plant for the fiscal year ended April 29, 2001 and the 52 weeks ended July 29, 2001, net of expenses of $7.5 million incurred related to the attempted merger with IBP, inc for the fiscal year ended April 29, 2001 and the 52 weeks ended July 29, 2001, and a $5.0 million loss resulting from a fire at a Circle Four farm in Utah for the 13 weeks and 52 weeks ended July 29, 2001.