EX-12.1 3 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
2009
    53 Weeks
2008
   52 Weeks
2007
    52 Weeks
2006
    52 Weeks
2005
 

(Loss) income before income taxes

   $ (953.3   $ 1,504.6    $ 1,403.6      $ 1,240.0      $ 849.0   

Add interest expense

     331.7        358.7      388.9        396.1        402.6   

Add interest on rental expense (a)

     230.8        239.2      239.7        256.0        256.7   

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

     (8.5     2.5      (8.7     (21.1     (15.8

Less minority interest in subsidiary

     —          —        —          (4.1     (8.5
                                       

(Loss) earnings

   $ (399.3   $ 2,105.0    $ 2,023.5      $ 1,866.9      $ 1,484.0   
                                       

Interest expense

   $ 331.7      $ 358.7    $ 388.9      $ 396.1      $ 402.6   

Add capitalized interest

     7.5        12.2      16.0        15.8        16.0   

Add interest on rental expense (a)

     230.8        239.2      239.7        256.0        256.7   
                                       

Fixed charges

   $ 570.0      $ 610.1    $ 644.6      $ 667.9      $ 675.3   
                                       

Ratio of earnings to fixed charges (b)

     NM        3.45      3.14        2.80        2.20   
                                       

 

(a) Based on an 8.5% discount factor in 2007, 2008 and 2009 and 10% discount factor in all other years on the estimated present value of future operating lease payments.

 

(b) In 2009, earnings were inadequate to cover fixed charges by approximately $170.7 million.

NM indicates not meaningful