Exhibit 12.1
Ratio of Earnings to Fixed Charges
(In millions, except ratios)
|
| | | | | | | | | | | | | | | | | | | | | | | |
| | Year-To-Date Ended | | Fiscal Year Ended |
| | December 5,
2015
(40 weeks) | | February 28,
2015
(53 weeks) | | February 22, 2014 (52 weeks) | | February 23, 2013(1) (52 weeks) | | February 25, 2012(2) (52 weeks) | | February 26, 2011(3)
(52 weeks) |
| Earnings (loss) from continuing operations before income taxes | $ | 208 |
| | $ | 185 |
| | $ | 18 |
| | $ | (416 | ) | | $ | (138 | ) | | $ | (253 | ) |
| Less net earnings attributable to noncontrolling interests | (6 | ) | | (7 | ) | | (7 | ) | | (10 | ) | | (13 | ) | | (7 | ) |
| Net overdistributed earnings of less than fifty percent owned affiliates | 1 |
| | — |
| | 1 |
| | 1 |
| | — |
| | — |
|
| Fixed charges | 179 |
| | 281 |
| | 444 |
| | 313 |
| | 295 |
| | 279 |
|
| Amortized capitalized interest | (1 | ) | | (1 | ) | | (1 | ) | | (4 | ) | | (6 | ) | | (8 | ) |
| Earnings (loss) available to cover fixed charges | $ | 381 |
| | $ | 458 |
| | $ | 455 |
| | $ | (116 | ) | | $ | 138 |
| | $ | 11 |
|
| | | | | | | | | | | | |
| Interest expense | 148 |
| | 244 |
| | 407 |
| | 272 |
| | 251 |
| | 235 |
|
| Capitalized interest | 1 |
| | 1 |
| | 1 |
| | 4 |
| | 6 |
| | 8 |
|
| Interest on operating leases | 30 |
| | 36 |
| | 36 |
| | 37 |
| | 38 |
| | 36 |
|
| Total fixed charges | $ | 179 |
| | $ | 281 |
| | $ | 444 |
| | $ | 313 |
| | $ | 295 |
| | $ | 279 |
|
| | | | | | | | | | | | |
| Excess (deficiency) of earnings to fixed charges | $ | 202 |
| | $ | 177 |
| | $ | 11 |
| | $ | (429 | ) | | $ | (157 | ) | | $ | (268 | ) |
| Ratio of earnings to fixed charges | 2.13 |
| | 1.63 |
| | 1.02 |
| | N/A |
| | N/A |
| | N/A |
|
N/A represents a ratio of less than one.
| |
| (1) | The Company’s earnings available to cover fixed charges were insufficient to cover fixed charges for fiscal 2013 due to $227 of non-cash asset impairment and other charges before tax, administrative expenses related to divested NAI operations, $36 of severance costs before tax, $22 of store closure charges and costs before tax, $22 of non-cash unamortized financing costs before tax and $6 of non-cash intangible asset impairment charges before tax, offset in part by $10 in a cash settlement received from credit card companies before tax. |
| |
| (2) | The Company’s earnings available to cover fixed charges were insufficient to cover fixed charges for fiscal 2012 due to administrative expenses related to divested NAI operations, $92 of non-cash goodwill impairment charges before tax and severance costs of $15 before tax. |
| |
| (3) | The Company’s earnings available to cover fixed charges were insufficient to cover fixed charges for fiscal 2011 due to administrative expenses related to divested NAI operations, $110 of non-cash goodwill impairment charges before tax, $49 of store closure charges and retail market exit charges and costs before tax and $38 of charges for severance, labor buyout and other costs before tax. |
