Attached files
Exhibit 12.1
SAFEWAY INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions)
Fiscal Year | |||||||||||||||||||
52 Weeks 2009 |
53 Weeks 2008 |
52 Weeks 2007 |
52 Weeks 2006 |
52 Weeks 2005 |
|||||||||||||||
(Loss) income before income taxes |
$ | (953.3 | ) | $ | 1,504.6 | $ | 1,403.6 | $ | 1,240.0 | $ | 849.0 | ||||||||
Add interest expense |
331.7 | 358.7 | 388.9 | 396.1 | 402.6 | ||||||||||||||
Add interest on rental expense (a) |
230.8 | 239.2 | 239.7 | 256.0 | 256.7 | ||||||||||||||
(Less) add equity in (earnings) losses of unconsolidated affiliates, net |
(8.5 | ) | 2.5 | (8.7 | ) | (21.1 | ) | (15.8 | ) | ||||||||||
Less minority interest in subsidiary |
| | | (4.1 | ) | (8.5 | ) | ||||||||||||
(Loss) earnings |
$ | (399.3 | ) | $ | 2,105.0 | $ | 2,023.5 | $ | 1,866.9 | $ | 1,484.0 | ||||||||
Interest expense |
$ | 331.7 | $ | 358.7 | $ | 388.9 | $ | 396.1 | $ | 402.6 | |||||||||
Add capitalized interest |
7.5 | 12.2 | 16.0 | 15.8 | 16.0 | ||||||||||||||
Add interest on rental expense (a) |
230.8 | 239.2 | 239.7 | 256.0 | 256.7 | ||||||||||||||
Fixed charges |
$ | 570.0 | $ | 610.1 | $ | 644.6 | $ | 667.9 | $ | 675.3 | |||||||||
Ratio of earnings to fixed charges (b) |
NM | 3.45 | 3.14 | 2.80 | 2.20 | ||||||||||||||
(a) | Based on an 8.5% discount factor in 2007, 2008 and 2009 and 10% discount factor in all other years on the estimated present value of future operating lease payments. |
(b) | In 2009, earnings were inadequate to cover fixed charges by approximately $170.7 million. |
NM indicates not meaningful