EX-12.1 2 dex121.htm STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Statement of Computation of Ratio of Earnings to Fixed Charges

Exhibit 12.1

THE HOME DEPOT, INC. AND SUBSIDIARIES

STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(amounts in millions, except ratio data)

 

     Fiscal Year (1)     Nine Months
Ended
October  31, 2010
     2005     2006     2007     2008     2009    

Earnings From Continuing Operations
Before Income Taxes

      $8,967        $8,502        $6,620        $3,590        $3,982      $4,323

Less: Capitalized Interest

      (51 )      (47 )      (46 )      (20 )      (4 )             (2)

Add:

             

Portion of Rental Expense under
operating leases deemed to be
the equivalent of interest

      177        257        279        286        277          211

Interest Expense

      192        437        741        644        680          441
                                            

Adjusted Earnings

      $9,285        $9,149        $7,594        $4,500        $4,935      $4,973
                                            

Fixed Charges:

             

Interest Expense

      $   192        $   437        $741        $   644        $680      $   441

Portion of Rental Expense under
operating leases deemed to be
the equivalent of interest

      177        257        279        286        277          211
                                            

Total Fixed Charges

      $   369        $   694        $1,020        $   930        $957      $   652
                                            

Ratio of Earnings to Fixed Charges (2)

      25.2x        13.2x        7.4x        4.8x        5.2x            7.6x

 

(1)

Fiscal years 2009, 2008, 2007, 2006 and 2005 refer to the fiscal years ended January 31, 2010, February 1, 2009, February 3, 2008, January 28, 2007 and January 29, 2006, respectively. Fiscal year 2007 includes 53 weeks; all other fiscal years reported include 52 weeks.

 

(2)

For purposes of computing the ratios of earnings to fixed charges, “earnings” consist of earnings from continuing operations before income taxes plus fixed charges, excluding capitalized interest. “Fixed charges” consist of interest incurred on indebtedness including capitalized interest, amortization of debt expenses and the portion of rental expense under operating leases deemed to be the equivalent of interest. The ratios of earnings to fixed charges are calculated as follows:

(earnings from continuing operations before income taxes)+(fixed charges)-(capitalized interest)

(fixed charges)