HD SUPPLY, INC. - FORM 10-K - EX-12.1 - COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES - April 14, 2011

Attached files

file filename
10-K - FORM 10-K - HD SUPPLY, INC.d10k.htm
EX-10.37 - HDS INVESTMENT HOLDINGS, INC. STOCK INCENTIVE PLAN - HD SUPPLY, INC.dex1037.htm
EX-31.1 - CERTIFICATION - HD SUPPLY, INC.dex311.htm
EX-32.1 - SECTION 906 CERTIFICATION - HD SUPPLY, INC.dex321.htm
EX-32.2 - SECTION 906 CERTIFICATION - HD SUPPLY, INC.dex322.htm
EX-31.2 - CERTIFICATION - HD SUPPLY, INC.dex312.htm
EX-21.1 - SUBSIDIARIES OF THE REGISGTRANT - HD SUPPLY, INC.dex211.htm
EX-10.43 - LETTER OF EMPLOYMENT - HD SUPPLY, INC.dex1043.htm

Exhibit 12.1

HD SUPPLY, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Dollars in millions, except ratio data)

 

     Successor(1)     Predecessor(1)  
     Fiscal year ended     Period from
August 30,
2007 to
February 3,
2008		     Period from
January 29,
2007 to
August 29,
2007		      Fiscal year
ended
January 28,
2007		  
     January 30,
2011		     January 31,
2010		     February 1,
2009		         

Income (loss) from continuing operations before provision (benefit) for income taxes

    $ (591 )    $ (716 )    $ (1,572 )    $ (231 )    $ 141       $ 435   

Add:

              

Interest expense

      623        602        644        289        262         424   

Portion of rental expense under operating leases deemed to be the equivalent of interest

      57        60        65        28        41         59   
                                                 

Adjusted earnings

    $ 89      $ (54 )    $ (863 )    $ 86      $ 444       $ 918   
                                                 

Fixed charges:

              

Interest expense

    $ 623      $ 602      $ 644      $ 289      $ 262       $ 424   

Portion of rental expense under operating leases deemed to be the equivalent of interest

      57        60        65        28        41         59   
                                                 

Total fixed charges

    $ 680      $ 662      $ 709      $ 317      $ 303       $ 483   
                                                 

Ratio of earnings to fixed charges(2) (3)

              1.5x         1.9x   
                                                 

 

(1) The Successor period from August 30, 2007 to February 3, 2008 includes 22 weeks and 4 days. The Predecessor period from January 29, 2007 to August 29, 2007 includes 30 weeks and 3 days. All other fiscal years reported include 52 weeks.
(2) For the purposes of calculating the ratio of earnings to fixed charges, earnings consist of income from continuing operations before provision for income taxes plus fixed charges. Fixed charges include cash and non-cash interest expense, whether expensed or capitalized, amortization of debt issuance cost, amortization of the THD Guarantee and the portion of rental expense representative of the interest factor.
(3) For fiscal years ended January 30, 2011, January 31, 2010, and February 1, 2009 and the period from August 30, 2007 to February 3, 2008, our earnings were insufficient to cover fixed charges by $591 million, $716 million, $1,572 million, and $231 million, respectively.

HD SUPPLY, INC. Reports