EX-12.1 4 dex121.htm STATEMENT OF COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES Statement of Computation of Ratios of Earnings to Fixed Charges

EXHIBIT 12.1

SAKS INCORPORATED

STATEMENT OF COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES AND RATIOS

OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

The following table sets forth the ratios of earnings to fixed charges for Saks Incorporated for the three months ended May 2, 2009 and for the fiscal years ended January 31, 2009, February 2, 2008, February 3, 2007, January 28, 2006 and January 29, 2005:

 

(Dollars in thousands)

    Three Months
Ended
May 2, 2009 		    Fiscal Year Ended  
     January 31,
2009		     February 2,
2008		     February 3,
2007		     January 28,
2006		     January 29,
2005		  

Earnings:

             

Pre-tax income (loss) from continuing operations

    $ (8,147 )    $ (175,527 )    $ 73,851      $ (42,532 )    $ (225,655 )    $ (152,257 ) 

Fixed charges

      19,449        83,726        86,386        105,088        158,750        189,017   

Amortization of capitalized interest

      493        1,870        1,715        1,718        2,424        2,224   

Capitalized interest

      (190 )      (1,527 )      (2,086 )      (4,113 )      (4,132 )      (3,504 ) 
                                                

Total Earnings

    $ 11,605      $ (91,458 )    $ 159,866      $ 60,161      $ (68,613 )    $ 35,480   
                                                

Fixed Charges:

             

Interest costs(1)

    $ 8,498      $ 37,747      $ 41,064      $ 50,988      $ 86,314      $ 110,605   

Amortization of debt expense and discount on indebtedness

      2,127        9,519        9,325        9,001        8,946        8,382   

Implied interest component of rent expense(2)

      8,824        36,460        35,997        45,099        63,490        70,030   
                                                

Total Fixed Charges

    $ 19,449      $ 83,726      $ 86,386      $ 105,088      $ 158,750      $ 189,017   
                                                

Ratio of earnings to fixed charges

      (3 )      (3 )      1.85x        (3 )      (3 )      (3 ) 
                                                

 

(1) Interest costs represent interest expensed and capitalized excluding losses on early extinguishment of debt.

 

(2) One-third of rent expense was determined to be a reasonable approximation of the implied interest component of rent expense.

 

(3) For the three month period ended May 2, 2009, earnings were insufficient to cover fixed charges by $7.8 million. For the years ended January 31, 2009, February 3, 2007, January 28, 2006 and January 29, 2005, earnings were insufficient to cover fixed charges by $175.2 million, $44.9 million, $227.4 million and $153.5 million, respectively.

For the periods indicated above, we had no outstanding shares of preferred stock. Therefore, the ratios of earnings to combined fixed charges and preferred stock dividends are identical to the ratios presented above for all such periods.