| Successor | Predecessor | |||||||||||||||||||||||||||||||
| Successor (1) | (1) | (1) | Predecessor | Predecessor | Predecessor | |||||||||||||||||||||||||||
| Three Months | Successor | Six Months | Six Months | Combined | (1) | (1) | (1) | |||||||||||||||||||||||||
| Ended | (1) | Ended | Ended | Fiscal | Fiscal | Fiscal | Fiscal | |||||||||||||||||||||||||
| March 31, 2007 | Fiscal 2006 | December 31, 2005 | July 2, 2005 | 2005 | 2004 | 2003 | 2002 | |||||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||||||||||||||
Earnings (Loss) before Fixed Charges: | ||||||||||||||||||||||||||||||||
| Earnings (loss) from continuing operations (2) | (44,781 | ) | (211,449 | ) | (21,348 | ) | 63,577 | 42,229 | 40,771 | (6,490 | ) | 22,254 | ||||||||||||||||||||
| Equity in (earnings) losses of foreign joint ventures | 1,424 | 3,413 | (174 | ) | 95 | (79 | ) | (3,590 | ) | (1,606 | ) | 281 | ||||||||||||||||||||
| Distributed income from foreign joint ventures | 0 | 362 | 0 | 300 | 300 | 0 | 0 | 0 | ||||||||||||||||||||||||
| Amortization of capitalized interest | 137 | 542 | 228 | 180 | 408 | 673 | 995 | 1,252 | ||||||||||||||||||||||||
| Fixed charges | 13,481 | 53,236 | 24,436 | 12,013 | 36,449 | 22,134 | 33,181 | 55,106 | ||||||||||||||||||||||||
| Less: Capitalized interest | 429 | 754 | 281 | 0 | 281 | 0 | 253 | 555 | ||||||||||||||||||||||||
Total Earnings (Loss) before Fixed Charges | (30,168 | ) | (154,650 | ) | 2,861 | 76,165 | 79,026 | 59,988 | 25,827 | 78,338 | ||||||||||||||||||||||
Fixed Charges: | ||||||||||||||||||||||||||||||||
| Interest expense including amortization of deferred financing fees, net of interest expense capitalized | 6,806 | 26,928 | 11,064 | 761 | 11,825 | 316 | 2,513 | 18,952 | ||||||||||||||||||||||||
| Capitalized interest | 429 | 754 | 281 | 0 | 281 | 0 | 253 | 555 | ||||||||||||||||||||||||
| Estimated interest portion of rental expense (3) | 6,246 | 25,554 | 13,091 | 11,252 | 24,343 | 21,818 | 30,415 | 35,599 | ||||||||||||||||||||||||
Total Fixed Charges | 13,481 | 53,236 | 24,436 | 12,013 | 36,449 | 22,134 | 33,181 | 55,106 | ||||||||||||||||||||||||
Ratio of Earnings to Fixed Charges | — | — | — | 6.3 | 2.2 | 2.7 | — | 1.4 | ||||||||||||||||||||||||
Deficiency of Earnings to Fixed Charges | 43,649 | 207,886 | 21,575 | — | — | — | 7,354 | — | ||||||||||||||||||||||||
Footnotes to Ratio of Earnings to Fixed Charges | ||||||||||||||||||||||||||||||||
| (1) | In connection with our emergence from bankruptcy, we adopted fresh-start accounting and reporting in accordance with AICPA Statement of Position 90-7, Financial Reporting by Entities in Reorganization under the Bankruptcy Code (“SOP 90-7”). “Successor” refers to Eddie Bauer Holdings, Inc., the emerged entity, on and after July 2, 2005. Predecessor refers to the former Spiegel, Inc. subsidiaries that supported Eddie Bauer, Inc. and its operations. As a result of our adoption of fresh-start accounting and reporting, the results of the Predecessor and Successor are not comparable. | |
| (2) | Earnings (loss) from continuing operations included reorganization expenses of $13.7 million, $26.9 million, and $91.0 million for the six months ended July 2, 2005, fiscal 2004 and fiscal 2003, respectively. Additionally, the six months ended July 2, 2005 included a $107.6 million gain on the discharge of liabilities associated with the Company’s emergence from bankruptcy. | |
| (3) | The estimated portion of interest within the Company’s rental expense is 33%. |
