EX-12 6 dp11895_ex12.htm
Exhibit 12

Campbell Soup Company
Ratio of Earnings to Fixed Charges
 
   
Fiscal Year Ended
  
                               
   
August 3, 2008
    
July 29, 2007
    
July 30, 2006
    
July 31, 2005
    
August 1, 2004
  
               
($ millions)
              
                               
Earnings
                              
Earnings from continuing operations before taxes
     939       1,099       947       902       818  
Amortization of capitalized interest
     5       5       5       5       5  
Fixed charges
     199       200       199       218       206  
Capitalized interest
     (4 )     (8 )     (5 )     (4 )     (3 )
                                         
Earnings
     1,139       1,296       1,146       1,121       1,026  
                                         
                                         
                                         
Fixed Charges
                                        
Gross interest:
                                        
     Interest expense
     167       163       165       184       174  
     Capitalized interest
     4       8       5       4       3  
Amortization of debt issuance costs
     1       2       2       2       3  
Interest portion of rent
     27       27       27       28       26  
                                         
Fixed Charges
     199       200       199       218       206  
                                         
                                         
                                         
Ratio of Earnings to Fixed Charges
     5.7       6.5       5.8       5.1       5.0  
 
 
 
The ratios of earnings to fixed charges were computed by dividing our earnings by fixed charges.  For this purpose, earnings include the sum of earnings from continuing operations before taxes, amortization of capitalized interest, and fixed charges, less capitalized interest.  Fixed charges include interest expense, capitalized interest, amortization of debt expenses and the estimated interest components of rentals.  All amounts are on an as reported basis.  The company adopted the provisions of SFAS No. 123 (revised 2004) “Share-Based Payment,” which require stock-based compensation to be measured based on the grant-date fair value and expensed over the period which an employee is required to provide service in exchange for the award.  As of the beginning of fiscal 2006, had all of the stock-based compensation been expensed, the pre-tax pro forma impact on earnings from continuing operations would have been a reduction of $43 million in 2005 and $44 million in 2004.  Including the effects of such charges, the pro forma ratio of earnings to fixed charges would have been 4.9 in 2005 and 4.8 in 2004.  In fiscal years 2008 and 2004, the company recorded pre-tax restructuring charges of $175 million and $24 million, respectively.  In fiscal 2006, the company recognized a non-cash reduction of $21 million in interest expense associated with the favorable settlement of a U.S. tax contingency.