EXHIBIT 12.1
Neiman Marcus, Inc.
Computation of Ratio of Earnings to Fixed Charges
(Unaudited)
| | (Successor) | | | (Predecessor) | |
(in thousands, except ratios) | | Fiscal year
ended
August 2,
2008 | | Fiscal year
ended
July 28,
2007 | | Forty-three
weeks
ended
July 29,
2006(1) | | | Nine
weeks
ended
October 1,
2005(1) | | Fiscal year
ended
July 30,
2005(1) | | Fiscal year
ended
July 31,
2004(1) | |
| | | | | | | | | | | | | | |
Fixed Charges: | | | | | | | | | | | | | | |
Interest on debt | | $ | 233,557 | | $ | 255,859 | | $ | 214,777 | | | $ | 3,186 | | $ | 23,336 | | $ | 20,881 | |
Amortization of debt discount and expense | | 14,217 | | 14,141 | | 11,728 | | | 96 | | 831 | | 220 | |
Interest element of rentals | | 27,291 | | 24,915 | | 19,404 | | | 3,729 | | 20,691 | | 19,404 | |
Total fixed charges | | $ | 275,065 | | $ | 294,915 | | $ | 245,909 | | | $ | 7,011 | | $ | 44,858 | | $ | 40,505 | |
Earnings: | | | | | | | | | | | | | | |
Earnings from continuing operations before income taxes | | $ | 226,629 | | $ | 216,998 | | $ | 41,043 | | | $ | 71,173 | | $ | 385,177 | | $ | 316,313 | |
Add back: | | | | | | | | | | | | | | |
Fixed charges | | 275,065 | | 294,915 | | 245,909 | | | 7,011 | | 44,858 | | 40,505 | |
Amortization of capitalized interest | | 1,018 | | 495 | | 776 | | | 105 | | 538 | | 424 | |
Less: | | | | | | | | | | | | | | |
Capitalized interest | | (3,036 | ) | (2,825 | ) | (3,446 | ) | | (1,146 | ) | (5,350 | ) | (3,036 | ) |
Total earnings | | $ | 499,676 | | $ | 509,583 | | $ | 284,282 | | | $ | 77,143 | | $ | 425,223 | | $ | 354,206 | |
Ratio of earnings to fixed charges (2) | | 1.8 | | 1.7 | | 1.2 | | | 11.0 | | 9.5 | | 8.7 | |
(1) All periods presented have been adjusted to exclude the operations of Gurwitch Products, L.L.C. and Kate Spade LLC.
(2) Interest associated with income tax liabilities is excluded from our calculation.
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