EX-12.1 8 dex121.htm CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES Calculation of Ratio of Earnings to Fixed Charges

Exhibit 12.1

Computation of Ratio of Earnings to Fixed Charges

(dollars in millions)

     Fiscal Years  
     2010     2009     2008     2007     2006  

Earnings:

          

Income (loss) from continuing operations before income taxes

   $ 1,203      $ (543 )    $ 154      $ 410      $ (268 ) 

Add: Fixed charges

     360        388        272        278        325   

Add: Amortization of capitalized interest

     3        4        4        3        3   

Less: Capitalized interest

     (11 )      (3 )      (3 )      (2 )      (8 ) 
                                        

Total adjusted earnings

     1,555        (154 )      427        689        52   

Fixed Charges:

          

Interest

     240        289        212        228        263   

Capitalized interest

     11        3        3        2        8   

Amortization of debt discount expense

     46        38        3        4        5   

Rentals at computed interest factor (1)

     63        58        54        44        49   
                                        

Total fixed charges

   $ 360      $ 388      $ 272      $ 278      $ 325   

Ratio of Earnings to Fixed Charges

     4.32          1.57        2.48     

Insufficient Coverage

     $ 542          $ 273   

 

(1) Amounts represent those portions of rent expense (one-third) that are reasonable approximations of interest costs.