LEE SARA CORP
10-Q, 2000-02-10
FOOD AND KINDRED PRODUCTS
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EXHIBIT 12.1


SARA LEE CORPORATION AND SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges
(in millions, except ratios)

 
  Twenty-Six Weeks Ended
 
 
  January 1,
2000

  December 26,
1998(1)

 
Fixed charges:              
Interest expense   $ 114   $ 114  
Interest portion of rental expense     34     30  
   
 
 
Total fixed charges before capitalized interest     148     144  
Capitalized interest     5     5  
   
 
 
Total fixed charges   $ 153   $ 149  
   
 
 
 
Earnings available for fixed charges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes   $ 886   $ 923  
Less undistributed income in minority-owned companies     (4 )   (2 )
Add minority interest in majority-owned subsidiaries     17     16  
Add amortization of capitalized interest     9     11  
Add fixed charges before capitalized interest     148     144  
   
 
 
Total earnings available for fixed charges   $ 1,056   $ 1,092  
   
 
 
Ratio of earnings to fixed charges     6.9     7.3  
   
 
 


(1)
In the second quarter of fiscal 1999, the Corporation recorded a pretax charge of $76 million in connection with a voluntary recall of certain of its packaged meat products.

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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SARA LEE CORPORATION AND SUBSIDIARIES Computation of Ratio of Earnings to Fixed Charges (in millions, except ratios)



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