EX-12.1 10 y66832exv12w1.txt STATEMENT RE COMPUTATION OF RATIO OF EARNINGS EXHIBIT 12.1 RATIO OF EARNINGS TO FIXED CHARGES We have calculated our ratio of earnings to fixed charges in the following table by dividing earnings by fixed charges. For this purpose, earnings are before tax and minority interest, plus fixed charges (excluding capitalize interest) and losses recognized from equity investments reduced by undistributed income from equity investments. Fixed charges include interest expense, capitalized interest and one-third of net rent expense, which is the portion of rent deemed representative of the interest factor.
Fiscal Year 36 Weeks Ended ------------------------------------------------------ ------------------- Dec. 27, Dec. 26, Dec. 25, Dec. 30, Dec. 29, Sept. 8, Sept. 7, 1997 1998 1999 2000 2001 2001 2002 -------- -------- -------- -------- --------- -------- ------- NET INCOME (LOSS) BEFORE TAXES AND MINORITY INTEREST $177 $(128) $282 $501 $600 $535 $670 Undistributed (income) loss from equity investments 12 5 - - - - - Fixed charges excluding capitalize interest 176 181 158 150 145 102 105 ---- ----- ---- ---- ---- ---- ---- EARNINGS AS ADJUSTED $365 $ 58 $440 $651 $745 $637 $775 ==== ===== ==== ==== ==== ==== ==== FIXED CHARGES: Interest expense $164 $ 166 $140 $136 $132 $ 91 $ 92 Capital interest 1 1 1 1 1 - - Interest portion of rental expense 12 15 18 14 13 11 13 ---- ----- ---- ---- ---- ---- ---- TOTAL FIXED CHARGES $177 $ 182 $159 $151 $146 $102 $105 ==== ===== ==== ==== ==== ==== ==== RATIO OF EARNINGS TO FIXED CHARGES 2.06 (A) 2.76 4.31 5.09 6.23 7.36
(A) As a result of the losses incurred in the fiscal year ended December 26, 1998, we were unable to fully cover the indicated fixed charges. Earnings did not cover fixed charges by $124 million in 1998.