EXHIBIT 12.1
SAKS INCORPORATED
STATEMENT OF COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES AND RATIOS
OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
The following table sets forth the ratios of earnings to fixed charges for Saks Incorporated for the three months ended April 28, 2012 and each of the fiscal years ended January 28, 2012, January 29, 2011, January 30, 2010, January 31, 2009 and February 2, 2008:
(Dollars in thousands) | Three Months | Fiscal Year Ended | ||||||||||||||||||||||
| Ended April 28, 2012 | January 28, 2012 | January 29, 2011 | January 30, 2010 | January 31, 2009 | February 2, 2008 | |||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Pre-tax income (loss) from continuing operations | $ | 56,312 | $ | 101,884 | $ | 33,486 | $ | (102,163 | ) | $ | (175,527 | ) | $ | 73,851 | ||||||||||
Fixed charges | 18,463 | 82,131 | 90,279 | 84,157 | 83,726 | 86,386 | ||||||||||||||||||
Amortization of capitalized interest | 507 | 2,022 | 2,003 | 1,864 | 1,870 | 1,715 | ||||||||||||||||||
Capitalized interest | (336 | ) | (955 | ) | (720 | ) | (758 | ) | (1,527 | ) | (2,086 | ) | ||||||||||||
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Total Earnings | $ | 74,946 | $ | 185,082 | $ | 125,048 | $ | (16,900 | ) | $ | (91,458 | ) | $ | 159,866 | ||||||||||
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Fixed Charges: | ||||||||||||||||||||||||
Interest costs(1) | $ | 5,545 | $ | 32,710 | $ | 41,793 | $ | 38,511 | $ | 37,747 | $ | 41,064 | ||||||||||||
Amortization of debt expense and discount on indebtedness | 4,198 | 16,360 | 15,652 | 11,727 | 9,519 | 9,325 | ||||||||||||||||||
Implied interest component of rent expense(2) | 8,720 | 33,061 | 32,834 | 33,919 | 36,460 | 35,997 | ||||||||||||||||||
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Total Fixed Charges | $ | 18,463 | $ | 82,131 | $ | 90,279 | $ | 84,157 | $ | 83,726 | $ | 86,386 | ||||||||||||
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Ratio of earnings to fixed charges | 4.06x | 2.25x | 1.39x | (3 | ) | (3 | ) | 1.85x | ||||||||||||||||
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| (1) | Interest costs represent interest expensed and capitalized excluding losses on early extinguishment of debt. |
| (2) | One-third of rent expense was determined to be a reasonable approximation of the implied interest component of rent expense. |
| (3) | For the years ending January 30, 2010 and January 31, 2009, earnings were insufficient to cover fixed charges by $101.1 million and $175.2 million, respectively. |
For the periods indicated above, we had no outstanding shares of preferred stock. Therefore, the ratios of earnings to combined fixed charges and preferred stock dividends are identical to the ratios presented above for all such periods.
