EX-12 7 fexh1202.txt
THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES Exhibit 12 - Statement Regarding Computation of Ratios of Earnings to Fixed Charges (in thousands, except ratios) ---------------------------------------------------------------------------------------------------------------------- February 1, February 2, February 3, Fiscal year 2003 2002 2001 ---------------------------------------------------------------------------------------------------------------------- Interest $ 46,858 $ 51,335 $ 57,882 Interest factor in rental expense 21,422 21,478 21,069 Capitalized interest 44 1 489 ---------------------------------------------------------------------------------------------------------------------- (a) Fixed charges, as defined $ 68,324 $ 72,814 $ 79,440 Earnings before income taxes $ 69,904 $ 56,404 $ (83,669) Fixed charges 68,324 72,814 79,440 Capitalized interest (44) (1) (489) ---------------------------------------------------------------------------------------------------------------------- (b) Earnings, as defined $ 138,184 $ 129,217 $ (4,718) ---------------------------------------------------------------------------------------------------------------------- (c) Ratio of earnings to fixed charges (b/a) 2.0x 1.8x - ---------------------------------------------------------------------------------------------------------------------- The ratio of earnings to fixed charges is completed by dividing earnings by fixed charges. "Earnings" consist of earnings before income taxes plus fixed charges (exclusive of capitalized interest costs) plus one-third of rental expense (which amount is considered representative of the interest factor in rental expense). Earnings, as defined, were not sufficient to cover fixed charges by approximately $4.7 million in fiscal year 2000. (Table Restubbed Below) (in thousands, except ratios) ---------------------------------------------------------------------------------------- January 29, January 30, Fiscal year 2000 1999 ---------------------------------------------------------------------------------------- Interest $ 51,557 $ 48,930 Interest factor in rental expense 19,963 19,052 Capitalized interest 1,098 1,020 ---------------------------------------------------------------------------------------- (a) Fixed charges, as defined $ 72,618 $ 69,002 Earnings before income taxes $ 44,967 $ 7,284 Fixed charges 72,618 69,002 Capitalized interest (1,098) (1,020) ---------------------------------------------------------------------------------------- (b) Earnings, as defined $ 116,487 $ 75,266 ---------------------------------------------------------------------------------------- (c) Ratio of earnings to fixed charges (b/a) 1.6x 1.1x ----------------------------------------------------------------------------------------
The ratio of earnings to fixed charges is completed by dividing earnings by fixed charges. "Earnings" consist of earnings before income taxes plus fixed charges (exclusive of capitalized interest costs) plus one-third of rental expense (which amount is considered representative of the interest factor in rental expense). Earnings, as defined, were not sufficient to cover fixed charges by approximately $4.7 million in fiscal year 2000.