Exhibit 12.1
Linens 'N Things
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(in thousands)
| Fiscal Year ended | Thirteen Weeks Ended | | | Thirteen Weeks Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| December 29, 2001 | January 4, 2003 | January 3, 2004 | January 1, 2005 | December 31, 2005 | April 2, 2005 | January 1 to February 13, 2006 | February 14 to April 1, 2006 | April 1, 2006 | ||||||||||
| (unaudited) | (unaudited) | | | | (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||
Earnings: | |||||||||||||||||||
Income (loss) from continuing operations before income taxes | 40,440 | 106,093 | 117,734 | 97,929 | 57,861 | (6,484 | ) | (69,174 | ) | (28,885 | ) | (98,059 | ) | ||||||
Fixed charges | 56,637 | 66,874 | 71,422 | 79,377 | 87,516 | 21,384 | 11,352 | 21,672 | 33,024 | ||||||||||
Earnings adjusted for fixed charges | 97,077 | 172,967 | 189,156 | 177,306 | 145,377 | 14,900 | (57,822 | ) | (7,213 | ) | (65,035 | ) | |||||||
Fixed charges: | |||||||||||||||||||
Interest expense, gross (note no interest capitalized) | 6,287 | 5,777 | 4,044 | 3,942 | 5,277 | 1,242 | 2 | 10,013 | 10,015 | ||||||||||
Portion of rent expense representative of interest(1) | 50,350 | 61,097 | 67,378 | 75,435 | 82,239 | 20,142 | 11,350 | 11,659 | 23,009 | ||||||||||
Total fixed charges | 56,637 | 66,874 | 71,422 | 79,377 | 87,516 | 21,384 | 11,352 | 21,672 | 33,024 | ||||||||||
Ratio of earnings to fixed charges | 1.71 | 2.59 | 2.65 | 2.23 | 1.66 | 0.70 | (5.09 | ) | (0.33 | ) | (1.97 | ) | |||||||
ESTIMATE OF INTEREST WITHIN RENTAL EXPENSE | |||||||||||||||||||
Total Rent expense (per historical financial statements) | 152,577 | 185,141 | 204,175 | 228,592 | 249,210 | 61,038 | 34,394 | 35,331 | 69,724 | ||||||||||
Estimated percentage (based on SEC guidance) | 33 | % | 33 | % | 33 | % | 33 | % | 33 | % | 33 | % | 33 | % | 33 | % | 33 | % | |
Estimated interest within rental expense | 50,350 | 61,097 | 67,378 | 75,435 | 82,239 | 20,142 | 11,350 | 11,659 | 23,009 | ||||||||||
- (1)
- One third of rent expense is deemed to be representative of interest.