EX-12.1
Published on March 31, 2008
Exhibit 12.1
Ratio of Earnings to Fixed Charges
The following table sets forth Microchip Technology Incorporateds ratio of earnings to fixed charges on a historical basis for each of the last five (5) years ended March 31, and for the nine (9) months ended December 31, 2006 and 2007, (dollars in thousands).
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Nine Months Ended |
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Fiscal Year Ended March 31, |
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December 31, |
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2003 |
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2004 |
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2005 |
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2006 |
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2007 |
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2006 |
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2007 |
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Earnings: |
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Net income |
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88,232 |
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137,262 |
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213,785 |
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242,369 |
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357,029 |
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229,321 |
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221,096 |
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Tax provision |
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28,657 |
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40,634 |
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63,483 |
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116,816 |
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44,061 |
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72,417 |
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41,068 |
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Fixed charges: |
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Interest expense |
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493 |
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249 |
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940 |
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1,967 |
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5,416 |
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5,146 |
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1,635 |
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Interest portion rent expense |
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627 |
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594 |
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649 |
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643 |
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680 |
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548 |
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553 |
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Total earnings: |
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118,009 |
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178,739 |
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278,857 |
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361,795 |
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407,186 |
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307,432 |
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264,352 |
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Total fixed charges: |
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1,120 |
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843 |
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1,589 |
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2,610 |
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6,096 |
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5,694 |
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2,188 |
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Earnings to fixed charges: |
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105.4 |
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212.0 |
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175.5 |
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138.6 |
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66.8 |
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54.0 |
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120.8 |
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The ratio of earnings to fixed charges is computed by dividing (i) income before income taxes plus fixed charges by (ii) fixed charges. Our fixed charges consist of the portion of operating lease rental expense that is representative of the interest factor and interest expense on indebtedness.
Our interest expense and related fixed charges does not include interest expense related to FIN 48 liabilities since we reflect these amounts within the tax provision.