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.
