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Sally Beauty Holdings, Inc.
Computation of Ratio of Earnings to Fixed Charges
(dollars in thousands, except ratios)
| Fiscal Year Ended September 30, | Six Months Ended March 31, | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | |||||||||||||
Income before provision for income taxes(a) | $ | 227,948 | $ | 335,939 | $ | 398,732 | $ | 412,667 | $ | 390,679 | $ | 186,775 | |||||||
Add: Total fixed charges (see details below) | 172,466 | 176,715 | 165,585 | 176,431 | 188,960 | 95,476 | |||||||||||||
Less: Capitalized interest | — | — | — | — | — | — | |||||||||||||
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Total income before provision for income taxes, plus fixed charges, less capitalized interest | $ | 400,414 | $ | 512,654 | $ | 564,317 | $ | 589,098 | $ | 579,639 | $ | 282,251 | |||||||
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Fixed Charges: | |||||||||||||||||||
Interest expense(b) | $ | 112,982 | $ | 112,530 | $ | 100,623 | $ | 107,695 | $ | 116,317 | $ | 58,469 | |||||||
Capitalized interest | — | — | — | — | — | — | |||||||||||||
Estimate of interest included in rental expense(c) | 59,484 | 64,185 | 64,962 | 68,736 | 72,643 | 37,007 | |||||||||||||
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Total fixed charges | $ | 172,466 | $ | 176,715 | $ | 165,585 | $ | 176,431 | $ | 188,960 | $ | 95,476 | |||||||
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Ratio of earnings to fixed charges | 2.32x | 2.90x | 3.41x | 3.34x | 3.07x | 2.96x |
- (a)
- For the fiscal year ended September 30, 2012, income before provision for income taxes excludes $37.8 million in charges related to our December 2011 redemption of certain senior notes and senior subordinated notes.
- (b)
- Interest expense includes interest associated with debt and the amortization of debt-issuance costs, and is net of interest income. For the fiscal year ended September 30, 2012, interest expense excludes $37.8 million in charges related to our redemption of certain notes, as discussed above.
- (c)
- Fixed charges include an estimate of interest included in rental payments—one third of rent expense under operating leases.
Sally Beauty Holdings, Inc. Computation of Ratio of Earnings to Fixed Charges (dollars in thousands, except ratios)