Dollar General Corporation
Ratio of Earnings to Fixed Charges
| Historical | Pro Forma(1) | Historical | ||||
| Predecessor | Successor | |||||
| Fiscal Year Ended |
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| Fiscal Year Ended | |||
| January 28, 2005 | February 3, 2006(2) | February 2, 2007 | February 3, | March 6, | February 1, | January 30, |
Earnings(3): |
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Income (loss) before income taxes | $534.8 | $544.6 | $220.4 | $4.0 | $(6.6) | $(3.4) | $194.4 |
Fixed Charges, exclusive of capitalized interest | 111.8 | 123.1 | 140.7 | 58.8 | 320.7 | 380.3 | 513.7 |
| $646.6 | $667.7 | $361.1 | $62.8 | $314.1 | $376.9 | $708.1 |
Fixed Charges(3): |
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Interest charged to expense | $28.8 | $26.2 | $34.9 | $10.3 | $252.9 | $264.0 | $391.9 |
Interest factor on rental expense(4) | 83.0 | 96.9 | 105.8 | 48.5 | 67.8 | 116.3 | 121.8 |
| 111.8 | 123.1 | 140.7 | 58.8 | 320.7 | 380.3 | 513.7 |
Interest capitalized | 3.6 | 3.3 | 2.9 | — | — | — | — |
| $115.4 | $126.4 | $143.6 | $58.8 | $320.7 | $380.3 | $513.7 |
Ratio of earnings to fixed charges | 5.6x | 5.3x | 2.5x | 1.1x |
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| 1.4x |
Excess of fixed charges over earnings(5) |
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| $(6.6) | $(3.4) |
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(1)
To give effect to the increase in interest expense resulting from the portion of the notes proceeds used to retire the $198.3 million of our 85/8% unsecured notes due June 10, 2010 as if such transactions had occurred at the beginning of the period presented.
(2)
The fiscal year ended February 3, 2006 was comprised of 53 weeks.
(3)
For purposes of computing the ratio of earnings to fixed charges, (a) earnings consist of income (loss) before income taxes, plus fixed charges less capitalized expenses related to indebtedness (amortization expense for capitalized interest is not significant) and (b) fixed charges consist of interest expense (whether expensed or capitalized), the amortization of debt issuance costs and discounts related to indebtedness, and the interest portion of rent expense.
(4)
The portion of rent expense representative of interest is based on the present value of the future lease payments discounted at 10%.
(5)
For the period from March 6, 2007 through February 1, 2008, fixed charges exceeded earnings by $6.6 million. For the fiscal year ended February 1, 2008, pro forma fixed charges exceeded earnings by $3.4 million.