EXHIBIT 12.1
Lam Research Corporation
Computation of Ratio of Earnings to Fixed Charges
(In thousands, except ratio data)
Pro Forma
**Includes Ontrak Income before taxes for FY96 & FY97
(1) During fiscal 1997, Lam recorded one-time charges and other significant
adjustments totaling approximately $78 million on a pre-tax basis for
restructuring costs; inventory, product warranty and other adjustments; and bad
debt reserves. During fiscal 1998, Lam recorded one-time charges and other
significant adjustments totaling approximately $167 million on a pre-tax basis
for restructuring and merger costs. During fiscal 1999, Lam recorded
restructuring charges of $53.4 million.
(2) For purposes of calculating the ratio of earnings to fixed charges, (i)
earnings consist of consolidated income (loss) before income taxes plus fixed
charges and (ii) fixed charges consist of interest expense incurred, including
capital leases, amortization of debenture costs and the portion of rental
expense under operating leases deemed by the Company to be representative of the
interest factor in rent expense.
(3) On a restated basis, reflecting the application of SAB 101 since the
beginning of fiscal 2001, the ratio of earnings to fixed charges was 6.8 for
the nine months ended March 25, 2001. As restated for SAB 101, consolidated
earnings before taxes is $165.5 million. Fixed charges are not impacted by the
application of SAB 101.