Albertsons Companies, Inc. and Subsidiaries
Computation of Ratio of Earnings to Fixed Charges
(in millions, except ratio)
(unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | |
| | 28 weeks ended
September 8, 2018 | | Fiscal
2017 | | Fiscal
2016 | | Fiscal
2015 | | Fiscal
2014 | | Fiscal
2013 |
| Earnings: | | | | | | | | | | | |
| Pre-tax (loss) income | $ | (65.0 | ) | | $ | (917.5 | ) | | $ | (463.6 | ) | | $ | (541.8 | ) | | $ | (1,378.6 | ) | | $ | 1,140.5 |
|
| Income from unconsolidated affiliate (1) | 1.5 |
| | 13.3 |
| | 17.5 |
| | 14.4 |
| | 1.1 |
| | — |
|
| (Loss) income before tax and unconsolidated affiliate | (66.5 | ) | | (930.8 | ) | | (481.1 | ) | | (556.2 | ) | | (1,379.7 | ) | | 1,140.5 |
|
| Plus: fixed charges | | | |
| | |
| | |
| | |
| | |
|
| Interest expense, net (2) | 449.5 |
| | 874.8 |
| | 1,003.8 |
| | 950.5 |
| | 633.2 |
| | 390.1 |
|
| Capitalized interest | 6.0 |
| | 6.4 |
| | 7.8 |
| | 2.1 |
| | 0.5 |
| | 0.1 |
|
| Portion of rent expense deemed to be interest | 154.3 |
| | 281.2 |
| | 268.5 |
| | 260.4 |
| | 125.3 |
| | 101.4 |
|
| Interest income | 10.3 |
| | 6.8 |
| | 3.9 |
| | 7.4 |
| | 1.4 |
| | 1.6 |
|
| Charges related to guarantee obligations | — |
| | — |
| | 1.6 |
| | 30.6 |
| | — |
| | — |
|
| Total fixed charges | 620.1 |
| | 1,169.2 |
| | 1,285.6 |
| | 1,251.0 |
| | 760.4 |
| | 493.2 |
|
| Less: capitalized interest | (6.0 | ) | | (6.4 | ) | | (7.8 | ) | | (2.1 | ) | | (0.5 | ) | | (0.1 | ) |
| Earnings: | $ | 547.6 |
| | $ | 232.0 |
| | $ | 796.7 |
| | $ | 692.7 |
| | $ | (619.8 | ) | | $ | 1,633.6 |
|
| Fixed Charges: | $ | 620.1 |
| | $ | 1,169.2 |
| | $ | 1,285.6 |
| | $ | 1,251.0 |
| | $ | 760.4 |
| | $ | 493.2 |
|
| Ratio of earnings to fixed charges (3) | — |
| | — |
| | — |
| | — |
| | — |
| | 3.3 |
|
(1) Represents earnings related to the Company’s equity method investments.
(2) Interest expense, net does not include interest relating to liabilities for uncertain tax positions, which the Company records as a component of income tax expense.
(3) Due to the Company’s losses during the 28 weeks ended September 8, 2018, fiscal 2017, fiscal 2016, fiscal 2015 and fiscal 2014, the ratio coverage was less than 1:1 in each of those periods. The Company would have needed to generate additional earnings of $72.5 million, $937.2 million, $488.9 million, $558.3 million and $1,380.2 million during the 28 weeks ended September 8, 2018, fiscal 2017, fiscal 2016, fiscal 2015 and fiscal 2014, respectively, in order to achieve a coverage ratio of 1:1 during those periods.
