EX-12.1 7 dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

EXHIBIT 12.1

SARA LEE CORPORATION AND SUBSIDIARIES

Computation of Ratio of Earnings to Fixed Charges

(in millions, except ratios)

(Unaudited)

 

     Quarter Ended  
    

September 29,

2007

    

September 30,

2006

  
    

Fixed charges:

     

Interest expense

    $ 54     $ 75  

Interest portion of rental expense

      11       11  
                

Total fixed charges before capitalized interest

      65       86  

Capitalized interest

      3       2  
                

Total fixed charges

    $ 68     $ 88  
                

Earnings available for fixed charges:

     

Income before income taxes

    $  265  (a)   $ 205  (b)

Less undistributed (loss) income in minority-owned companies

      (1 )     (1 )

Add minority interest in majority-owned subsidiaries

      2       (1 )

Add amortization of capitalized interest

      3       2  

Add fixed charges before capitalized interest

      65       86  
                

Total earnings available for fixed charges

    $ 334     $ 291  
                

Ratio of earnings to fixed charges

      4.9       3.3  
                
(a) During the first quarter of fiscal 2008, the corporation recognized $4 million of pretax expense from continuing operations in connection with certain restructuring actions. Also, during the first quarter of fiscal 2008, the corporation recognized $130 million of contingent sales proceeds from the disposal of its European tobacco business.
(b) In the first quarter of fiscal 2007, the corporation recognized $1 million of pretax income from continuing operations in connection with certain restructuring actions. Also, during the first quarter of fiscal 2007, the corporation recognized $120 million of contingent sales proceeds from the disposal of its European tobacco business.