EX-12.1 2 medtronic115761_ex12-1.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

EXHIBIT 12.1

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

 

The ratio of earnings to fixed charges for the six months ended October 28, 2011 was computed based on Medtronic’s current quarterly report on Form 10-Q. The ratio of earnings to fixed charges for the fiscal years ended April 29, 2011, April 30, 2010, April 24, 2009, April 25, 2008, and April 27, 2007 was computed based on Medtronic’s historical consolidated financial information.

 

    Six months ended
October 28,
2011		     Year ended
April 29,
2011		     Year ended
April 30,
2010		     Year ended
April 24,
2009		     Year ended
April 25,
2008		     Year ended
April 27,
2007		  
Earnings:                                                
Net earnings   $ 1,692     $ 3,096     $ 3,099     $ 2,070     $ 2,138     $ 2,703  
Income taxes     383       627       870       370       602       658  
Minority interest loss/(income)     4       8       7       1       —       —  
Capitalized interest (1)     (2 )     (4 )     (4 )     (5 )     (10 )     (3 )
    $ 2,077     $ 3,727     $ 3,972     $ 2,436     $ 2,730     $ 3,358  
Fixed Charges:                                                
Interest expense (2)   $ 162     $ 450     $ 402     $ 371     $ 400     $ 383  
Capitalized interest (1)     2       4       4       5       10       3  
Amortization of debt issuance costs (3)     8       14       11       15       15       17  
Rent interest factor (4)     26       44       46       45       41       34  
    $ 198     $ 512     $ 463     $ 436     $ 466     $ 437  
Earnings before income taxes and fixed charges   $ 2,275     $ 4,239     $ 4,435     $ 2,872     $ 3,196     $ 3,795  
Ratio of earnings to fixed charges     11       8       10       7       7       9  

 

(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 8 to the condensed consolidated financial statements for further information regarding the debt securities.

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