EXHIBIT 12
RITE AID CORPORATION AND SUBSIDIARIES
STATEMENTS RE COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
TWENTY-SIX WEEKS ENDED AUGUST 29, 1998 AND
YEARS ENDED FEBRUARY 28, 1998, MARCH 1, 1997, MARCH 2, 1996, MARCH 4, 1995, AND
FEBRUARY 26, 1994
(Dollar Amounts in Thousands)
Twenty-six
Weeks Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
August 29, Feb. 28, March 1, March 2, March 4, Feb. 26,
1998 1998 1997 1996 1995 1994
--------- --------- --------- --------- --------- ---------
Fixed Charges
Interest Expense $ 83,228 $ 159,752 $ 96,473 $ 68,341 $ 42,300 $ 28,683
Interest Portion(1)
of Net Rental
Expense 66,993 111,943 66,067 52,080 40,424 40,427
--------- --------- --------- --------- --------- ---------
Fixed Charges Before
Capitalized Interest 150,221 271,695 162,540 120,421 82,724 69,110
Capitalized Interest 3,843 3,834 1,897 1,948 373 217
--------- --------- --------- --------- --------- ---------
Total Fixed Charges $ 154,064 $ 275,529 $ 164,437 $ 122,369 $ 83,097 $ 69,327
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Earnings
Income\(Loss) Before
Extraordinary Loss
and Income Taxes $ (3,026)(4) $ 530,041 $ 258,927(3) $ 256,202 $ 231,464 $ 45,670(2)
Fixed Charges Before
Capitalized Interest 150,221 271,695 162,540 120,421 82,724 69,110
--------- --------- --------- --------- --------- ---------
Total Adjusted
Earnings $ 147,195 $ 801,736 $ 421,467 $ 376,623 $ 314,188 $ 114,780
========= ========= ========= ========= ========= =========
Ratio of Earnings to
Fixed Charges 0.96 2.91 2.56 3.08 3.78 1.66
========= ========= ========= ========= ========= =========
(1) The interest portion of the net rental expense is estimated to be equal to
one-third of the minimum rental expense for the period.
(2) Income before extraordinary loss and income taxes for fiscal year 1994
includes a $149,196,000 one-time, pre-tax provision for corporate
restructuring and other charges.
(3) Income before extraordinary loss and income taxes for fiscal year 1997
includes a $68,057,000 one-time, pre-tax charge for nonrecurring and
other charges.
(4) Loss before extraordinary loss and income taxes for twenty-six weeks ended
August 29, 1998 includes a $289,678,000 pre-tax charge for store closings
and other charges.