Exhibit 99.1
Albertsons Companies, Inc. and Subsidiaries
Computation of Ratio of Earnings to Fixed Charges
(in millions, except ratio)
(unaudited)
Fiscal 2018 | Fiscal 2017 | Fiscal 2016 | Fiscal 2015 | Fiscal 2014 | |||||||||||||||
Earnings: | |||||||||||||||||||
Pre-tax income (loss) | $ | 52.2 | $ | (917.5 | ) | $ | (463.6 | ) | $ | (541.8 | ) | $ | (1,378.6 | ) | |||||
Income from unconsolidated affiliate (1) | 0.1 | 13.3 | 17.5 | 14.4 | 1.1 | ||||||||||||||
Income (loss) before tax and unconsolidated affiliate | 52.1 | (930.8 | ) | (481.1 | ) | (556.2 | ) | (1,379.7 | ) | ||||||||||
Plus: fixed charges | |||||||||||||||||||
Interest expense, net (2) | 830.8 | 874.8 | 1,003.8 | 950.5 | 633.2 | ||||||||||||||
Capitalized interest | 12.7 | 6.4 | 7.8 | 2.1 | 0.5 | ||||||||||||||
Portion of rent expense deemed to be interest | 287.9 | 281.2 | 268.5 | 260.4 | 125.3 | ||||||||||||||
Interest income | 19.7 | 6.8 | 3.9 | 7.4 | 1.4 | ||||||||||||||
Charges related to guarantee obligations | — | — | 1.6 | 30.6 | — | ||||||||||||||
Total fixed charges | 1,151.1 | 1,169.2 | 1,285.6 | 1,251.0 | 760.4 | ||||||||||||||
Less: capitalized interest | (12.7 | ) | (6.4 | ) | (7.8 | ) | (2.1 | ) | (0.5 | ) | |||||||||
Earnings: | $ | 1,190.5 | $ | 232.0 | $ | 796.7 | $ | 692.7 | $ | (619.8 | ) | ||||||||
Fixed Charges: | $ | 1,151.1 | $ | 1,169.2 | $ | 1,285.6 | $ | 1,251.0 | $ | 760.4 | |||||||||
Ratio of earnings to fixed charges (3) | 1.0 | — | — | — | — |
(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 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 $937.2 million, $488.9 million, $558.3 million and $1,380.2 million during fiscal 2017, fiscal 2016, fiscal 2015 and fiscal 2014, respectively, in order to achieve a coverage ratio of 1:1 during those periods.