EX-12 3 a2216481zex-12.htm EX-12

Exhibit 12

 

STATEMENT REGARDING THE COMPUTATION OF THE RATIO OF EARNINGS TO FIXED CHARGES AND RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

 

We have calculated the ratio of earnings to fixed charges and the ratio of earnings to combined fixed charges and preferred stock dividends in the following table by dividing earnings by fixed charges and earnings by the sum of fixed charges and preferred stock dividends, respectively. For this purpose, earnings include pre-tax income from continuing operations plus fixed charges, before capitalized interest. Fixed charges include interest, whether expensed or capitalized, amortization of debt expense, preferred stock dividend requirement and that portion of rental expense which is representative of the interest factor in those rentals.

 

 

 

13 Week Period Ended

 

Fiscal Year Ended

 

 

 

June 1, 2013

 

June 2, 2012

 

March 2, 2013
(52 Weeks)

 

March 3,
2012
(53 Weeks)

 

February 26,
2011
(52 weeks)

 

February 27,
2010
(52 weeks)

 

February 28,
2009
(52 weeks)

 

 

 

(dollars in thousands)

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

$

113,064

 

$

130,588

 

$

515,421

 

$

529,255

 

$

547,581

 

$

515,763

 

$

477,627

 

Interest portion of net rental expense(1)

 

79,364

 

79,700

 

317,080

 

325,631

 

321,888

 

320,506

 

320,947

 

Fixed charges before capitalized interest

 

192,428

 

210,288

 

832,501

 

854,886

 

869,469

 

836,269

 

798,574

 

Capitalized interest

 

58

 

137

 

399

 

315

 

509

 

859

 

1,434

 

Total fixed charges

 

$

192,486

 

$

210,425

 

$

832,900

 

$

855,201

 

$

869,978

 

$

837,128

 

$

800,008

 

Preferred stock dividend requirement(2)

 

5,464

 

5,148

 

21,056

 

19,838

 

18,692

 

17,614

 

43,536

 

Total combined fixed charges and preferred stock dividends

 

$

197,950

 

$

215,573

 

$

853,956

 

$

875,039

 

$

888,670

 

$

854,742

 

$

843,544

 

Earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income before income taxes

 

92,874

 

(89,817

)

7,505

 

$

(392,257

)

$

(545,582

)

$

(479,918

)

$

(2,582,794

)

Fixed charges before capitalized interest

 

192,428

 

210,288

 

832,501

 

854,886

 

869,469

 

836,269

 

798,574

 

Total earnings and fixed charges

 

$

285,302

 

$

120,471

 

$

840,006

 

$

462,629

 

$

323,887

 

$

356,351

 

$

(1,784,220

)

Ratio of earnings to fixed charges

 

1.48

x

—

 

1.01

x

—

 

—

 

—

 

—

 

Ratio of earnings to combined fixed charges and preferred stock dividends(3)

 

1.44

x

—

 

—

 

—

 

—

 

—

 

—

 

Excess (Deficiency) of earnings to fixed charges

 

$

92,816

 

$

(89,954

)

7,106

 

$

(392,572

)

$

(546,091

)

$

(480,777

)

$

(2,584,228

)

Excess (Deficiency) of earnings to combined fixed charges and preferred stock dividends

 

$

87,352

 

$

(95,102

)

$

(13,950

)

$

(412,410

)

$

(564,783

)

$

(498,391

)

$

(2,627,764

)

 

(1)                   The interest portion of net rental expense is estimated to be equal to one-third of the minimum rental expense for the period.

 

(2)                   The preferred stock dividend requirement is computed as the pre-tax earnings that would be required to cover preferred stock dividends.

 


 

(3)                   For the years ended March 2, 2013, March 3, 2012, February 26, 2011, February 27, 2010 and February 28, 2009 earnings were insufficient to cover fixed charges and preferred stock dividends by approximately $14.0 million, $412.4 million, $564.8 million, $498.4 million and $2.6 billion, respectively. For the quarter ended June 2, 2012, earnings were insufficient to cover fixed charges and preferred stock dividends by $95.1 million.

 

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