EX-12.1 2 aciq1-18ex121.htm EXHIBIT 12.1 Exhibit
Exhibit 12.1




Albertsons Companies, Inc. and Subsidiaries
Computation of Ratio of Earnings to Fixed Charges
(in millions, except ratio)
(unaudited)
 
 
16 weeks ended
June 16, 2018
 
Fiscal
2017
 
Fiscal
2016
 
Fiscal
2015
 
Fiscal
2014
 
Fiscal
2013
Earnings:
 
 
 
 
 
 
 
 
 
 
 
Pre-tax (loss) income
$
(20.7
)
 
$
(917.5
)
 
$
(463.6
)
 
$
(541.8
)
 
$
(1,378.6
)
 
$
1,140.5

Income from unconsolidated affiliate (1)
2.1

 
13.3

 
17.5

 
14.4

 
1.1

 

(Loss) income before tax and unconsolidated affiliate
(22.8
)
 
(930.8
)
 
(481.1
)
 
(556.2
)
 
(1,379.7
)
 
1,140.5

Plus: fixed charges
 
 
 

 
 

 
 

 
 

 
 

Interest expense, net (2)
254.6

 
874.8

 
1,003.8

 
950.5

 
633.2

 
390.1

Capitalized interest
3.3

 
6.4

 
7.8

 
2.1

 
0.5

 
0.1

Portion of rent expense deemed to be interest
88.2

 
281.2

 
268.5

 
260.4

 
125.3

 
101.4

Interest income
4.9

 
6.8

 
3.9

 
7.4

 
1.4

 
1.6

Charges related to guarantee obligations

 

 
1.6

 
30.6

 

 

Total fixed charges
351.0

 
1,169.2

 
1,285.6

 
1,251.0

 
760.4

 
493.2

Less: capitalized interest
(3.3
)
 
(6.4
)
 
(7.8
)
 
(2.1
)
 
(0.5
)
 
(0.1
)
Earnings:
$
324.9

 
$
232.0

 
$
796.7

 
$
692.7

 
$
(619.8
)
 
$
1,633.6

Fixed Charges:
$
351.0

 
$
1,169.2

 
$
1,285.6

 
$
1,251.0

 
$
760.4

 
$
493.2

Ratio of earnings to fixed charges (3)

 

 

 

 

 
3.3

(1) Represents earnings related to the Company’s equity method investments.
(2) Interest expense, net does not include interest relating to liabilities for uncertain tax positions, which the Company records as a component of income tax expense.
(3) Due to the Company’s losses during the 16 weeks ended June 16, 2018, fiscal 2017, fiscal 2016, fiscal 2015 and fiscal 2014, the ratio coverage was less than 1:1 in each of those periods. The Company would have needed to generate additional earnings of $26.1 million, $937.2 million, $488.9 million, $558.3 million and $1,380.2 million during the 16 weeks ended June 16, 2018, fiscal 2017, fiscal 2016, fiscal 2015 and fiscal 2014, respectively, in order to achieve a coverage ratio of 1:1 during those periods.