EX-12 18 file014.htm STATEMENT RE COMPUTATION OF RATIO

Exhibit 12

RITE AID CORPORATION AND SUBSIDIARIES

STATEMENT REGARDING COMPUTATION OF RATIO OF
EARNINGS TO FIXED CHARGES

RATIO OF EARNINGS TO FIXED CHARGES

We have calculated the ratio of earnings to fixed charges in the following table by dividing earnings by fixed charges. For this purpose, earnings include pre-tax income from continuing operations plus fixed charges. Fixed charges include interest, whether expensed or capitalized, amortization of debt expense, preferred stock dividend requirement and that portion of rental expense which is representative of the interest factor in those rentals.


  Year Ended
(Dollar in thousand)
  March 1,
2003
(52 Weeks)
March 2,
2002
(52 Weeks)
March 3,
2001
(53 Weeks)
February 26,
2000
(52 Weeks)
February 27,
1999
(52 Weeks)
Fixed Charges:
Interest expense $ 330,020   $ 396,064   $ 649,926   $ 542,028   $ 274,826  
Interest portion of net rental expense (1)   189,463     182,260     159,066     146,852     139,104  
Fixed charges before capitalized interest and preferred stock dividend requirements   519,483     578,324     808,992     688,880     413,930  
Preferred stock dividend requirement (2)   49,540     42,354     42,445     15,554     965  
Capitalized interest   301     806     1,836     5,292     7,069  
Total fixed charges $ 569,324   $ 621,484   $ 853,273   $ 709,726   $ 421,964  
Earnings:
Loss from continuing operations before income taxes, extraordinary item and cumulative effect of accounting charge $ (167,644 $ (772,837 $ (1,282,807 $ (1,123,296 $ (665,040
Share of loss from equity method investees       12,092     36,675     15,181     448  
Preferred stock dividend requirement   (49,540   (42,354   (42,445   (15,554   (965
Fixed charges before capitalized interest   569,023     620,678     851,437     704,434     414,895  
Total adjusted earnings (loss)   351,839     (182,421   (437,140   (419,235   (250,662
Earnings to fixed charges, deficiency $ (217,485 $ (803,905 $ (1,290,413 $ (1,128,961 $ (672,626
(1) The interest portion of net rental expense is estimated to be equal to one-third of the minimum rental expense for the period.
(2) The preferred stock divided requirement is computed as the pre-tax earnings that would be required to cover preferred stock dividends.