EX-12 4 a2183929zex-12.htm RATIO OF EARNING TO FIXED CHARGES
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Exhibit 12

Dollar General Corporation
Ratio of Earnings to Fixed Charges

 
  Historical
   
 
 
  Pro Forma(4)
 
 
  Predecessor
   
 
 
  Successor
   
 
 
  Fiscal Year Ended
  February 3,
2007
through
July 6,
2007

   
 
 
  July 7,
2007
through
February 1, 2008

  Fiscal Year
Ended
February 1,
2008

 
 
  January 30, 2004
  January 28, 2005
  February 3, 2006
  February 2, 2007
 
Earnings(1):                                            
Income (loss) before income taxes   $ 476.5   $ 534.8   $ 544.6   $ 220.4   $ 4.0   $ (6.6 ) $ (3.4 )
Fixed Charges, exclusive of capitalized interest     104.0     111.8     123.1     140.7     58.8     320.7     380.3  
   
 
 
 
 
 
 
 
    $ 580.5   $ 646.6   $ 667.7   $ 361.1   $ 62.8   $ 314.1   $ 376.9  
   
 
 
 
 
 
 
 
Fixed Charges(1):                                            
Interest charged to expense   $ 35.6   $ 28.8   $ 26.2   $ 34.9   $ 10.3   $ 252.9   $ 264.0  
Interest factor on rental expense(2)     68.4     83.0     96.9     105.8     48.5     67.8     116.3  
   
 
 
 
 
 
 
 
      104.0     111.8     123.1     140.7     58.8     320.7     380.3  
Interest capitalized     0.2     3.6     3.3     2.9              
   
 
 
 
 
 
 
 
    $ 104.2   $ 115.4   $ 126.4   $ 143.6   $ 58.8   $ 320.7   $ 380.3  
   
 
 
 
 
 
 
 
Ratio of earnings to fixed charges     5.6x     5.6x     5.3x     2.5x     1.1x              
   
 
 
 
 
             
Excess of fixed charges over earnings(3)                                 $ (6.6 ) $ (3.4 )
                                 
 
 

(1)
For purposes of computing the ratio of earnings to fixed charges, (a) earnings consist of income (loss) before income taxes, plus fixed charges less capitalized expenses related to indebtedness (amortization expense for capitalized interest is not significant) and (b) fixed charges consist of interest expense (whether expensed or capitalized), the amortization of debt issuance costs, and the interest portion of rent expense.

(2)
The portion of rent expense representative of interest is based on the present value of the future lease payments discounted at 10%.

(3)
For the period from July 7, 2007 through February 1, 2008, fixed charges exceeded earnings by $6.6 million. For the fiscal year ended February 1, 2008, pro forma fixed charges exceeded earnings by $3.4 million.

(4)
To give effect to the increase in interest expense resulting from the portion of the notes proceeds used to retire the $198.3 million of our 85/8% unsecured notes due June 10, 2010 as if such transactions had occurred at the beginning of the period presented.



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