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. |