Exhibit 12.1
Statement of Computation of Ratio of Earnings to Fixed Charges
(In millions, except ratios)
| Six Months Ended April 29, 2018 |
Fiscal Year Ended | |||||||||||||||||||||||
| October 29, 2017 |
October 30, 2016 |
October 25, 2015 |
October 26, 2014 |
October 27, 2013 |
||||||||||||||||||||
| Income from continuing operations before taxes |
2,457 | 3,731 | 2,013 | 1,598 | 1,448 | 350 | ||||||||||||||||||
| Add adjustments: |
||||||||||||||||||||||||
| Fixed charges |
120 | 215 | 170 | 116 | 109 | 109 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Income from continuing operations before taxes and fixed charges |
2,577 | 3,946 | 2,183 | 1,714 | 1,557 | 459 | ||||||||||||||||||
| Fixed charges: |
||||||||||||||||||||||||
| Interest expense(b) |
113 | 202 | 156 | 104 | 96 | 96 | ||||||||||||||||||
| Amortization of discounts and capitalized expenses related to indebtedness |
2 | 3 | 3 | 2 | 2 | 2 | ||||||||||||||||||
| Estimated interest component of rental expense |
5 | 10 | 11 | 10 | 11 | 11 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total fixed charges from continuing operations |
120 | 215 | 170 | 116 | 109 | 109 | ||||||||||||||||||
| Ratio of earnings to fixed charges(a) |
21.5 | x | 18.4 | x | 12.8 | x | 14.8 | x | 14.3 | x | 4.2 | x | ||||||||||||
| (a) | The ratio of earnings to fixed charges was computed by dividing income from continuing operations before taxes and fixed charges by the fixed charges from continuing operations for the periods indicated. Fixed charges from continuing operations include interest expense, amortization of discounts and debt issuance costs and 30% of rental expense, which Applied considers to be a reasonable approximation of the interest factor included in rental expense. |
| (b) | Interest expense does not include interest expense related to uncertain tax positions as a component of fixed charges. Interest expense related to uncertain tax positions is included as a component of provision for income taxes. |