EX-12.1 8 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

 

SCHEDULE OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES FOR THE KROGER CO. AND CONSOLIDATED SUBSIDIARY COMPANIES FOR THE FIVE FISCAL YEARS ENDED JANUARY 29, 2005

 

     January 29,
2005
(52 weeks)
     January 31,
2004
(52 weeks)
     February 1,
2003
(52 weeks)
     February 2,
2002
(52 weeks)
     February 3,
2001
(53 weeks)
  

Earnings:

                                         

Earnings before tax expense (1)

    $ 290     $ 766     $ 1,950     $ 1,706     $ 1,499  

Fixed charges (1)

      950       983       1,000       1,032       1,065  

Capitalized interest

      (5 )     (5 )     (5 )     (9 )     (7 )
    
 
 
 
 
     $ 1,235     $ 1,744     $ 2,945     $ 2,729     $ 2,557  
    
 
 
 
 

Fixed charges:

                                         

Interest (1)

    $ 562     $ 609     $ 624     $ 659     $ 688  

Portion of rental Payments deemed to be interest

      388       374       376       373       377  
    
 
 
 
 
     $ 950     $ 983     $ 1,000     $ 1,032     $ 1,065  
    
 
 
 
 

Ratio of earnings to fixed charges (1)

      1.3       1.8       2.9       2.6       2.4  

 

(1) Amounts have been adjusted for the Company’s adoption of SFAS No. 145 on February 2, 2003. Adoption of this Statement required the Company to reclassify the debt extinguishments recorded as extraordinary items in prior periods as interest expense in those periods. These debt extinguishments totaled $19 million, $5 million and $15 million, pre-tax, in the fiscal years ended February 1, 2003, February 3, 2001, January 29, 2000, respectively. There were no debt extinguishments recorded as extraordinary items during the fiscal year ended February 2, 2002.