EX-12.1 2 defa14abhnex121compofratio.htm EXHIBIT 12.1 DEFA14A BHN Ex.12.1 Comp of Ratio of Earnings to Fixed Chrgs for 8-K BHN recast as dis ops
Exhibit 12.1

SAFEWAY INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions)
 
 
 
 
 
 
 
52 Weeks
2013
52 Weeks
2012
52 Weeks
2011
52 Weeks
2010
53 Weeks
2009
 
Income (loss) from continuing operations before income taxes
$
251.6

$
362.2

$
398.0

$
474.7

$
(1,337.8
)
Add interest expense
273.0

300.6

268.1

295.0

327.9

Add interest on rental expense (a)
199.1

193.7

194.2

192.7

196.6

Less equity in earnings of unconsolidated affiliate, net
(17.6
)
(17.5
)
(13.0
)
(15.3
)
(8.5
)
Earnings (loss)
$
706.1

$
839.0

$
847.3

$
947.1

$
(821.8
)
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
$
273.0

$
300.6

$
268.1

$
295.0

$
327.9

Add capitalized interest
8.8

10.9

14.0

10.5

7.3

Add interest on rental expense (a)
199.1

193.7

194.2

192.7

196.6

Fixed charges
$
480.9

$
505.2

$
476.3

$
498.2

$
531.8

 
 
 
 
 
 
Ratio of earnings to fixed charges (b)
1.5

1.7

1.8

1.9

NM

 
 
 
 
 
 
(a) Based on an 8.5% discount factor on the estimated present value of future operating lease payments.
(b) NM indicates not meaningful. In 2009, earnings were inadequate to cover fixed charges by approximately $1,353.6 million due to our recording non-cash goodwill impairment charges of $1,974.2 million, before tax.