EX-12.1 3 d277353dex121.htm COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES Computation of Ratios of Earnings to Fixed Charges

EXHIBIT 12.1

Kraft Foods Inc. and Subsidiaries

Computation of Ratios of Earnings to Fixed Charges

(in millions of dollars)

 

00,000,000 00,000,000 00,000,000 00,000,000 00,000,000
     Years Ended December 31,  
     2011     2010     2009     2008     2007  

Earnings from continuing operations before
income taxes

   $ 4,772      $ 3,642      $ 3,946      $ 2,336      $ 3,335   

Add / (Deduct):

          

Equity in net earnings of less than 50%
owned affiliates

     (84     (115     (92     (97     (83

Dividends from less than 50% owned affiliates

     60        61        55        84        57   

Fixed charges

     2,113        2,109        1,434        1,410        818   

Interest capitalized, net of amortization

     1        1        (1     (5     (6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings available for fixed charges

   $ 6,862      $ 5,698      $ 5,342      $ 3,728      $ 4,121   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Fixed charges:

          

Interest incurred:

          

Interest expense (a)

   $ 1,956      $ 1,943      $ 1,280      $ 1,281      $ 698   

Capitalized interest

     1        2        4        6        10   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     1,957        1,945        1,284        1,287        708   

Portion of rent expense deemed to represent
interest factor

     156        164        150        123        110   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Fixed charges

   $ 2,113      $ 2,109      $ 1,434      $ 1,410      $ 818   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratio of earnings to fixed charges

     3.2        2.7        3.7        2.6        5.0   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Notes:

(a) Excludes interest related to uncertain tax positions, which is recorded in our tax provision.