EX-99.2 5 dex992.htm STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Statement of Computation of Ratio of Earnings to Fixed Charges

EXHIBIT 99.2

Schedule of computation of ratio of earnings to fixed charges of The Kroger Co. and consolidated subsidiary companies for the five fiscal years ended January 29, 2005 and for the three quarters ended November 5, 2005 and November 6, 2004.

 

     November 5,
2005
(40 weeks)
    November 6,
2004
(40 weeks)
   

January 29,

2005
(52 weeks)
(as restated)

    January 31,
2004
(52 weeks)
(as restated)
    February 1,
2003
(52 weeks)
    February 2,
2002
(52 weeks)
    February 3,
2001
(53 weeks)
(as restated)
 
     (in millions of dollars)  

Earnings:

              

Earnings before tax expense(1)

   $ 1,073     $ 865     $ 286     $ 739     $ 1,950     $ 1,706     $ 1,525  

Fixed charges(1)

     692       744       950       983       1,000       1,032       1,065  

Capitalized interest

     (5 )     (4 )     (5 )     (5 )     (5 )     (9 )     (7 )
   $ 1,760     $ 1,605     $ 1,231     $ 1,717     $ 2,945     $ 2,729     $ 2,583  
                                                        

Fixed charges:

              

Interest(1)

   $ 399     $ 445     $ 562     $ 609     $ 624     $ 659     $ 688  

Portion of rental Payments

deemed to be interest

     293       299       388       374       376       373       377  
                                                        
   $ 692     $ 744     $ 950     $ 983     $ 1,000     $ 1,032     $ 1,065  

Ratio of earnings to fixed charges(1)

     2.5       2.2       1.3       1.7       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 and $5 million, pre-tax, in the fiscal years ended February 1, 2003 and February 3, 2001, respectively. There were no debt extinguishments recorded as extraordinary items during the fiscal year ended February 2, 2002.