EX-12 4 tru201410k-ex12.htm STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES TRU.2014.10K-Ex12
Exhibit 12


Toys “R” Us, Inc.
Computation of Historical Ratios of Earnings to Fixed Charges (a) 
(In Millions, Except Ratio Data)

 
 
Fiscal Years Ended
($ In millions)
 
January 31, 2015
February 1, 2014
February 2, 2013
January 28, 2012
January 29, 2011
Consolidated pretax (loss) earnings from continuing operations
 
(256
)
$
(867
)
$
92

$
150

$
132

Noncontrolling interest
 
4

3

1

2

(1
)
Interest capitalized during period
 


(1
)
(1
)
(1
)
Total fixed charges
 
631

714

716

688

756

Adjusted earnings (loss) from continuing operations
 
$
379

$
(150
)
$
808

$
839

$
886

 
 
 
 
 
 
 
Fixed Charges
 
 
 
 
 
 
Interest expense
 
451

$
524

$
480

$
442

$
521

Interest capitalized during period
 


1

1

1

Interest portion of rental expense
 
180

190

235

245

234

Total Fixed Charges
 
$
631

$
714

$
716

$
688

$
756

Ratio of Earnings to Fixed Charges
 
0.60

(0.21
)
1.13

1.22

1.17

(a) For purposes of calculating the ratio of earnings to fixed charges, earnings (loss) were calculated by adding (i) earnings (loss) from continuing operations before noncontrolling interest and income taxes, (ii) interest expense, including the portion of rents representative of an interest factor and (iii) amortization of debt issuance costs. Fixed charges consist of interest expense, amortization of debt issuance costs and the portions of rents representative of an interest factor.

Rent expense, net of sublease income
 
$
601

$
609

$
628

$
588

$
570

Capitalization factor
 
3.7

4.4

4.6

5.2

5.0

Weighted average cost of long-term debt
 
8.1
%
7.1
%
8.1
%
8.0
%
8.2
%
Interest in rent expense
 
$
180

$
190

$
235

$
245

$
234

% of interest to rent expense
 
30
%
31
%
37
%
42
%
41
%