Exhibit 12.1
Computation of Earnings to Fixed Charges
The following table sets forth information regarding the registrant’s ratio of earnings to fixed charges for the periods shown. For purposes of determining the ratio of earnings to fixed charges, earnings consist of income from continuing operations before income taxes, fixed charges and amortization of capitalized interest. Fixed charges consist of interest expense (before interest is capitalized), amortization of debt premiums and discounts, capitalized expenses related to indebtedness and one-third of rent expense, which represents an appropriate interest factor on operating leases. Fixed charges represent amounts relating to continuing operations.
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| | Successor | | | | | Predecessor | |
| | 135 Day Period Ended June 29, 2014 | | | | | 47 Day Period Ended February 14, 2014 | | | Six Month Period Ended June 30, 2013 | | | Fiscal Year Ended | |
| | | | | December 29, 2013 | | | December 30, 2012 | | | January 1, 2012 | | | January 2, 2011 | | | January 3, 2010 | |
| | | | | | | (dollars in thousands) | |
Income (loss) before income taxes | | $ | (35,554 | ) | | | | $ | 1,722 | | | $ | 65,455 | | | $ | 76,018 | | | $ | 69,670 | | | $ | 89,104 | | | $ | 92,760 | | | $ | 98,948 | |
Fixed charges | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense and amortization of debt issuance cost | | | 27,282 | | | | | | 1,151 | | | | 4,231 | | | | 7,453 | | | | 9,401 | | | | 8,875 | | | | 12,142 | | | | 12,017 | |
Portion of rent estimated to represent interest factor | | | 10,142 | | | | | | 4,122 | | | | 12,992 | | | | 26,154 | | | | 25,104 | | | | 24,997 | | | | 23,475 | | | | 22,565 | |
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Total fixed charges | | $ | 37,424 | | | | | $ | 5,273 | | | $ | 17,223 | | | $ | 33,607 | | | $ | 35,505 | | | $ | 33,872 | | | $ | 35,617 | | | $ | 34,582 | |
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Income before income taxes plus fixed charges | | $ | 1,870 | | | | | $ | 6,995 | | | $ | 82,678 | | | $ | 109,625 | | | $ | 104,175 | | | $ | 122,976 | | | $ | 128,377 | | | $ | 133,530 | |
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Ratio of earnings to fixed charges | | | NM | (1) | | | | | 1.33x | | | | 4.80x | | | | 3.26x | | | | 3.02x | | | | 3.63x | | | | 3.60x | | | | 3.86x | |
(1) | Due to the registrant’s loss in the 135 day period ended June 29, 2014, the ratio coverage was less than 1:1. The registrant must generate additional earnings of $35,554 to achieve a coverage of 1:1. |