EX-12 3 f69103ex12.txt STATEMENT REGARDING COMPUTATION OF RATIOS 1 EXHIBIT 12 SAFEWAY INC. AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (DOLLARS IN MILLIONS) (UNAUDITED)
FISCAL YEAR ---------------------------------------------------------------------- 2000 1999 1998 1997 1996 --------- --------- --------- --------- --------- Income before income taxes and extraordinary loss $ 1,866.5 $ 1,674.0 $ 1,396.9 $ 1,076.3 $ 767.6 Add interest expense 457.2 362.2 235.0 241.2 178.5 Add interest on rental expense(a) 218.7 183.0 108.2 88.5 90.0 Less equity in earnings of unconsolidated affiliates (31.2) (34.5) (28.5) (34.9) (50.0) Add minority interest in subsidiary 1.1 5.9 5.1 4.4 3.4 --------- --------- --------- --------- --------- Earnings $ 2,512.3 $ 2,190.6 $ 1,716.7 $ 1,375.5 $ 989.5 ========= ========= ========= ========= ========= Interest expense $ 457.2 $ 362.2 $ 235.0 $ 241.2 $ 178.5 Add capitalized interest 17.0 9.3 8.5 5.7 4.4 Add interest on rental expense(a) 218.7 183.2 108.2 88.5 90.0 --------- --------- --------- --------- --------- Fixed charges $ 692.9 $ 554.5 $ 351.7 $ 335.4 $ 272.9 ========= ========= ========= ========= ========= Ratio of earnings to fixed charges 3.63 3.95 4.88 4.10 3.63 ========= ========= ========= ========= =========
(a) Based on a 10% discount factor on the estimated present value of future operating lease payments.