LEE SARA CORP
10-Q, 1999-11-12
FOOD AND KINDRED PRODUCTS
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SARA LEE CORPORATION AND SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges
(in millions, except ratios)

EXHIBIT 12.1

 
  Thirteen Weeks Ended
 
 
  October 2,
1999

  September 26,
1998(1)

 
Fixed charges:              
Interest expense   $ 54   $ 52  
Interest portion of rental expense     18     15  
   
 
 
Total fixed charges before capitalized interest     72     67  
Capitalized interest     3     2  
   
 
 
Total fixed charges   $ 75   $ 69  
   
 
 
Earnings available for fixed charges:              
Income before income taxes   $ 354   $ 476  
Less undistributed income in minority-owned companies     (2 )   (1 )
Add minority interest in majority-owned subsidiaries     9     8  
Add amortization of capitalized interest     6     6  
Add fixed charges before capitalized interest     72     67  
   
 
 
Total earnings available for fixed charges   $ 439   $ 556  
   
 
 
Ratio of earnings to fixed charges     5.9     8.1  
   
 
 

(1)
In the first quarter of fiscal 1999, the Corporation recorded a pretax gain of $137 million in connection with the sale of its international tobacco operations.

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