EX-12 2 generalmills063741_ex12.htm COMPUTATION OF RATIO OF EARNINGS General Mills, Inc. Exhibit 12 to Form 10-Q for the Quarter ended August 27, 2006

Exhibit 12

 

 

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

 

 

 

Thirteen Weeks
Ended

 

Fiscal Year Ended

Dollars in Millions

 

Aug.27,
2006

 

Aug.28,
2005

 

May 28,
2006

 

May 29,
2005

 

May 30,
2004

 

May 25,
2003

 

May 26,
2002

 

Earnings before Income Taxes
and After-tax Earnings from Joint Ventures

 

$

386

 

$

362

 

$

1,559

 

$

1,808

 

$

1,502

 

$

1,310

 

$

663

 

Distributed Income of Equity Investees

 

 

11

 

 

18

 

 

85

 

 

96

 

 

67

 

 

101

 

 

20

 

Plus: Fixed Charges (1)

 

 

121

 

 

103

 

 

463

 

 

524

 

 

569

 

 

619

 

 

468

 

Plus: Amortization of Capitalized Interest, net of Interest Capitalized

 

 

—

 

 

1

 

 

2

 

 

1

 

 

(5

)

 

(5

)

 

—

Earnings Available to Cover Fixed Charges

 

$

518

 

$

484

 

$

2,109

 

$

2,429

 

$

2,133

 

$

2,025

 

$

1,151

 

Ratio of Earnings to Fixed Charges

 

 

4.27

 

 

4.67

 

 

4.56

 

 

4.63

 

 

3.75

 

 

3.27

 

 

2.46

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Fixed Charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and Minority Interest Expense, Gross

 

$

112

 

$

95

 

$

428

 

$

488

 

$

537

 

$

589

 

$

445

 

Rentals (1/3)

 

 

9

 

 

8

 

 

35

 

 

36

 

 

32

 

 

30

 

 

23

 

Total Fixed Charges

 

$

121

 

$

103

 

$

463

 

$

524

 

$

569

 

$

619

 

$

468

 

 

 

For purposes of computing the ratio of earnings to fixed charges, earnings represent earnings before taxes and after-tax earnings of joint ventures, distributed income of equity investees, fixed charges, and capitalized interest. Fixed charges represent gross interest expense and subsidiary preferred distributions to minority interest holders, plus one-third (the proportion deemed representative of the interest factor) of rent expense. Calculations are based on underlying numbers. We have reclassified previously reported Ratios of Earnings to Fixed Charges to conform to the current year presentation.