Neiman Marcus 10-K 2016 FY Annual report

EXHIBIT 12.1

NEIMAN MARCUS GROUP LTD LLC

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(UNAUDITED)

	Fiscal year ended				Fiscal year ended			Thirty-nine weeks ended				Thirteen weeks ended				Fiscal year ended			Fiscal year ended
(in thousands, except ratios)	July 30, 2016				August 1, 2015			August 2, 2014				November 2, 2013				August 3, 2013			July 30, 2012
	(Successor)				(Successor)			(Successor)				(Predecessor)				(Predecessor)			(Predecessor)
Fixed charges:
Interest on debt	$	268,395			$	267,752		$	216,281			$	34,998			$	160,839		$	167,916
Amortization of debt discount and expense	24,572				24,560			17,117				2,466				8,404			8,457
Interest element of rentals	34,320				33,462			23,232				7,293				29,139			27,687
Total fixed charges	$	327,287			$	325,774		$	256,630			$	44,757			$	198,382		$	204,060
Earnings (loss):
Earnings (loss) from continuing operations before income taxes	$	(547,251	)		$	28,076		$	(223,908	)		$	(5,179	)		$	277,432		$	228,337
Add back:
Fixed charges	327,287				325,774			256,630				44,757				198,382			204,060
Amortization of capitalized interest	2,180				1,208			886				295				1,181			1,142
Less:
Capitalized interest	(7,298		)		(2,361		)	(630		)		(140		)		(237		)	(1,080		)
Total earnings (loss)	$	(225,082	)		$	352,697		$	32,978			$	39,733			$	476,758		$	432,459
Ratio of earnings to fixed charges (a)				(b)	1.1						(c)				(d)	2.4			2.1

(a) Interest associated with income tax liabilities is excluded from our calculation.

(b) For the fiscal year ended July 30, 2016, the aggregate amount of fixed charges exceeded our earnings by approximately $552.4 million, which is the amount of additional earnings that would have been required to achieve a ratio of earnings to fixed charges of 1.0x for such period. The deficiency of the ratio of earnings to fixed charges for fiscal year 2016 is due primarily to the pretax impairment charges related to (i) $228.9 million for the writedown to fair value of the net carrying value of tradenames, (ii) $199.2 million for the writedown to fair value of goodwill and (iii) $38.1 million for the writedown to fair value of the net carrying value of certain long-lived assets.

(c) For the thirty-nine weeks ended August 2, 2014, the aggregate amount of fixed charges exceeded our earnings by approximately $223.7 million, which is the amount of additional earnings that would have been required to achieve a ratio of earnings to fixed charges of 1.0x for such period.

(d) For the thirteen weeks ended November 2, 2013, the aggregate amount of fixed charges exceeded our earnings by approximately $5.0 million, which is the amount of additional earnings that would have been required to achieve a ratio of earnings to fixed charges of 1.0x for such period.