EX-12 10 k60961ex12.txt STATEMENT REGARDING COMPUTAITON OF RATIOS 1 EXHIBIT 12 KMART CORPORATION INFORMATION ON RATIO OF EARNINGS TO FIXED CHARGES COMPUTATION
Fiscal Year Ended ---------------------------------------------- ($ Millions) January 31, January 26, January 27, 2001 2000 1999 ---------------------------------------------- Net income (loss) from continuing operations $ (244) $ 633 $ 518 Dividends on trust convertible preferred, net 46 50 50 Income taxes (134) 337 230 ------- ------- ------- Pretax income (loss) from continuing operations (332) 1,020 798 Equity income from unconsolidated affiliated retail companies that exceeds distributions (6) (44) (42) Fixed charges per below 569 585 579 Less: Interest capitalized during the period (7) (16) (13) Preferred dividends of wholly owned trust subsidiary not deducted in the determination of pre-tax income (71) (78) (78) ------- ------- ------- Earnings from continuing operations plus fixed charges $ 153 $ 1,467 $ 1,244 ======= ======= ======= Fixed charges: Interest expense, net $ 287 $ 280 $ 293 Rent expense - portion of operating rentals representative of the interest factor 186 189 173 Preferred dividends of wholly owned trust subsidiary 71 78 78 Interest income and capitalized interest 25 38 35 ------- ------- ------- Total fixed charges $ 569 $ 585 $ 579 ======= ======= ======= Ratio of earnings from continuing operations to fixed charges -- 2.5 2.1 ======= ======= =======
Note: Due to the loss from continuing operations for the fiscal year ended January 31, 2001, the ratio of coverage was less than 1:1. Excluding the $728 million pre-tax charge for strategic initiatives, the ratio of earnings from continuing operations to fixed charges was 1.5 for the fiscal year ended January 31, 2001.