EX-12.1 8 d435153dex121.htm EX-12.1 EX-12.1

Exhibit 12.1

HD SUPPLY, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Dollars in millions, except ratio data)

 

     Successor(1)     Predecessor(1)  
     Six
Months
Ended
July 29,
2012		     Fiscal year ended     Period
from
August 30,
2007 to
February 3,
2008		     Period from
January 29,
2007 to
August 29,
2007		  
     January 29,
2012		     January 30,
2011		     January 31,
2010		     February 1,
2009		      

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

    $ (398 )    $ (484 )    $ (585 )    $ (678 )    $ (1,477 )    $ (275 )    $ 41   

Add:

               

Interest expense

      324        639        623        602        644        289        261   

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

      22        48        49        52        55        22        33   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted earnings

    $ (52 )    $ 203      $ 87      $ (24 )    $ (778 )    $ 36      $ 335   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed charges:

               

Interest expense

    $ 324      $ 639      $ 623      $ 602      $ 644      $ 289      $ 261   

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

      22        48        49        52        55        22        33   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed charges

    $ 346      $ 687      $ 672      $ 654      $ 699      $ 311      $ 294   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

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

                  1.1x   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(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 the six months ended July 29, 2012, fiscal years ended January 29, 2012, 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 $398 million, $484 million, $585 million, $678 million, $1,477 million and $275 million, respectively.