EX-12.1 5 dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

Exhibit 12.1

SAFEWAY INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Dollars in millions)

 

     Fiscal Year  
      52 Weeks
2007
    52 Weeks
2006
    52 Weeks
2005
    52 Weeks
2004
    53 Weeks
2003
 

Income before income taxes

   $ 1,403.6     $ 1,240.0     $ 849.0     $ 793.9     $ 141.1  

Add interest expense

     388.9       396.1       402.6       411.2       442.4  

Add interest on rental expense (a)

     239.7       256.0       256.7       258.2       258.6  

(Less) add equity in (earnings) losses of unconsolidated affiliates, net

     (8.7 )     (21.1 )     (15.8 )     (12.6 )     7.1  

Less minority interest in subsidiary

     —         (4.1 )     (8.5 )     (10.1 )     (10.4 )
                                        

Earnings

   $ 2,023.5     $ 1,866.9     $ 1,484.0     $ 1,440.6     $ 838.8  
                                        

Interest expense

   $ 388.9     $ 396.1     $ 402.6     $ 411.2     $ 442.4  

Add capitalized interest

     16.0       15.8       16.0       19.7       21.9  

Add interest on rental expense (a)

     239.7       256.0       256.7       258.2       258.6  
                                        

Fixed charges

   $ 644.6     $ 667.9     $ 675.3     $ 689.1     $ 722.9  
                                        

Ratio of earnings to fixed charges

     3.14       2.80       2.20       2.09       1.16  
                                        

 

(a) Based on an 8.5% discount factor in 2007 and 10% discount factor in all other years on the estimated present value of future operating lease payments.