EX-12.1 4 medtronic103067s1_ex12-1.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES EXHIBIT 12.1 TO MEDTRONIC, INC. FORM 10-K FOR THE FISCAL YEAR ENDED APRIL 30, 2010

 

 

Medtronic, Inc.

Notes to Consolidated Financial Statements  

 

 

 

Exhibit 12.1

MEDTRONIC, INC. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

The ratio of earnings to fixed charges for the fiscal years ended April 30, 2010, April 24, 2009, April 25, 2008, April 27, 2007, April 28, 2006 and April 29, 2005 was computed based on Medtronic’s historical consolidated financial information included in Medtronic’s most recent Annual Report incorporated by reference on Form 10-K.

 

 

 

 

Year ended
April 30,
2010

 

Year ended
April 24,
2009

 

Year ended
April 25,
2008

 

Year ended
April 27,
2007

 

Year ended
April 28,
200

 

Year ended
April 29,
2005

 

Earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings

      

$

3,099

      

$

2,070

       

$

2,138

      

$

2,703

      

$

2,519

      

$

1,797

 

Income taxes

 

 

 870

 

 

 370

 

 

 602

 

 

 658

 

 

 598

 

 

 736

 

Minority interest (loss)/income

 

 

 7

 

 

 1

 

 

—

 

 

—

 

 

—

 

 

 (1

)

Capitalized interest (1)

 

 

 (4

)

 

 (5

)

 

 (10

)

 

 (3

)

 

 (3

)

 

 (1

)

 

 

$

3,972

 

$

2,436

 

$

2,730

 

$

3,358

 

$

3,114

 

$

2,531

 

Fixed Charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense (2)

 

$

402

 

$

371

 

$

400

 

$

383

 

$

162

 

$

66

 

Capitalized interest (1)

 

 

 4

 

 

 5

 

 

 10

 

 

 3

 

 

 3

 

 

 1

 

Amortization of debt issuance costs (3)

 

 

 11

 

 

 15

 

 

 15

 

 

 17

 

 

 7

 

 

 1

 

Rent interest factor (4)

 

 

 46

 

 

 45

 

 

 41

 

 

 34

 

 

 26

 

 

 24

 

 

 

$

463

 

$

436

 

$

466

 

$

437

 

$

198

 

$

92

 

Earnings before income taxes and fixed charges

 

$

4,435

 

$

2,872

 

$

3,196

 

$

3,795

 

$

3,312

 

$

2,623

 

Ratio of earnings to fixed charges

 

 

 10

 

 

 7

 

 

 7

 

 

 9

 

 

 17

 

 

 29

 

 

(1) Capitalized interest relates to construction projects in process.

(2) Interest expense consists of interest on indebtedness.

(3) Represents the amortization of debt issuance costs incurred in connection with the Company's registered debt securities.  See Note 9 to the consolidated financial statements for further information regarding the debt securities.

(4) Approximately one-third of rental expense is deemed representative of the interest factor.