1
EXHIBIT 99.1
Schedule of computation of ratio of earnings to fixed charges of The Kroger Co.
and consolidated subsidiary companies and unconsolidated companies as if
consolidated for the five fiscal years ended December 27, 1997 and for the three
quarters ended October 3, 1998 and October 4, 1997.
3 Quarters Ended Fiscal Years Ended
--------------------- ---------------------------------------------------------------
October 3, October 4, December 27, December 28, December 30, December 31, January 1,
1998 1997 1997 1996 1995 1994 1994
(16 Weeks) (16 Weeks) (52 Weeks) (52 Weeks) (52 Weeks) (52 weeks) (52 weeks)
---------- ---------- ------------ ------------ ----------- ------------ -----------
(in thousands of dollars)
Earnings
Earnings from continuing
operations before tax
expense, extraordinary
loss and cumulative
effect of change in
accounting (1) . . . . . $436,193 $484,070 $712,363 $567,313 $509,538 $421,363 $283,938
Fixed charges. . . . . . 364,313 372,461 482,338 482,680 489,939 500,599 556,008
Capitalized interest . . (6,483) (6,430) (8,550) (10,887) (6,785) (2,521) 230
-------- -------- ---------- ---------- -------- -------- --------
$794,023 $850,101 $1,186,151 $1,039,106 $992,692 $919,441 $840,176
======== ======== ========== ========== ======== ======== ========
Fixed Charges
Interest . . . . . . . . $211,552 $229,788 $294,985 $311,958 $320,236 $331,097 $391,693
Portion of rental
payments deemed to be
interest. . . . . . . . 152,761 142,673 187,353 170,722 169,703 169,502 164,315
-------- -------- ---------- -------- -------- -------- --------
$364,313 $372,461 $ 482,338 $482,680 $489,939 $500,599 $556,008
======== ======== ========== ======== ======== ======== ========
Ratio of Earnings to
Fixed Charges (1) . . . 2.2 2.3 2.5 2.2 2.0 1.8 1.5
(1) For the 3 quarters ended October 3, 1998, earnings from continuing
operations before tax expense, extraordinary loss and cumulative effect
of change in accounting contain one-time expenses of $52.4 million and
expenses related to an accounting change of $89.7 million. The ratio of
earning to fixed charges net of the one-time expenses and the
accounting change is 2.6 for the 3 quarters ended October 3, 1998.