EX-12.1 2 a13-20619_1ex12d1.htm EX-12.1

EXHIBIT 12.1

 

Neiman Marcus Group LTD Inc.

Computation of Ratio of Earnings to Fixed Charges

(Unaudited)

 

 

 

Fiscal year ended

 

(in thousands, except ratios) 

 

August 3,
2013

 

July 28,
2012

 

July 30,
2011

 

July 31,
2010

 

August 1,
2009

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Charges:

 

 

 

 

 

 

 

 

 

 

 

Interest on debt

 

$

160,839

 

$

167,916

 

$

266,816

 

$

219,400

 

$

221,951

 

Amortization of debt discount and expense

 

8,404

 

8,457

 

14,661

 

18,697

 

17,185

 

Interest element of rentals

 

29,139

 

27,687

 

26,301

 

25,146

 

24,750

 

Total fixed charges

 

$

198,382

 

$

204,060

 

$

307,778

 

$

263,243

 

$

263,886

 

Earnings (loss):

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) from continuing operations before income taxes

 

$

277,432

 

$

228,337

 

$

49,264

 

$

(5,313

)

$

(888,491

)

Add back:

 

 

 

 

 

 

 

 

 

 

 

Fixed charges

 

198,382

 

204,060

 

307,778

 

263,243

 

263,886

 

Amortization of capitalized interest

 

1,181

 

1,142

 

1,115

 

1,112

 

1,058

 

Less:

 

 

 

 

 

 

 

 

 

 

 

Capitalized interest

 

(237

)

(1,080

)

(535

)

(286

)

(993

)

Total earnings (loss)

 

$

476,758

 

$

432,459

 

$

357,622

 

$

258,756

 

$

(624,540

)

Ratio of earnings to fixed charges (a)

 

2.4

 

2.1

 

1.2

 

 

(b)

 

(c)

 

(a)                                 Interest associated with income tax liabilities is excluded from our calculation.

 

(b)                                 For fiscal year 2010, the aggregate amount of fixed charges exceeded our earnings by approximately $4.5 million, which is the amount of additional earnings that would have been required to achieve a ratio of earnings to fixed charges of 1.0x for such period.

 

(c)                                  For fiscal year 2009, the aggregate amount of fixed charges exceeded our earnings by approximately $888.4 million, which is the amount of additional earnings that would have been required to achieve a ratio of earnings to fixed charges of 1.0x for such period.  The deficiency of the ratio of earnings to fixed charges for fiscal year 2009 is primarily due to the pretax impairment charges related to 1) $329.7 million for the writedown to fair value of goodwill, 2) $343.2 million for the writedown to fair value of the net carrying value of tradenames and 3) $30.3 million for the writedown to fair value of the net carrying value of certain long-lived assets.