EX-12.1 134 dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

Exhibit 12.1

HD SUPPLY, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

($ in millions, except ratio data)

 

     Successor(1)          Predecessor(1)
              
     Three Months Ended    Fiscal year
ended		   

 

Period from
August 30,
2007 to
February 3,
2008

         

Period

from
January 29,
2007 to
August 29,
2007

    Fiscal year ended
                  
     May 3,
2009
(Unaudited)		    May 4,
2008
(Unaudited)		    February 1,
2009		                January 28,
2007		    January 29,
2006		    January 30,
2005
(Unaudited)
              

Income (loss) from continuing operations before income taxes

    $21    $(105)    $(1,442)    $(231)         $141    $435    $235    $109

Add:

                             

Interest expense

    152    160    644    289         262    424    115    27

Portion of rental expense under operating leases deemed to be the equivalent of interest

    15    17    65    28         41    59    20    8
    

 

Adjusted earnings

   

 

$188

   

 

$72

   

 

$(733)

   

 

$86

        

 

$444

   

 

$918

   

 

$370

   

 

$144

    

 

Fixed charges:

                             

Interest expense

    $152    $160    $644    $289         $262    $424    $115    $27

Portion of rental expense under operating leases deemed to be the equivalent of interest

    15    17    65    28         41    59    20    8
    

 

Total fixed charges

   

 

$167

   

 

$177

   

 

$709

   

 

$317

        

 

$303

   

 

$483

   

 

$135

   

 

$35

    

Ratio of earnings to fixed charges(2) (3)

    1.1x                  1.5x    1.9x    2.7x    4.1x
    

 

  (1) The three months ended May 3, 2009 and May 4, 2008 both include 13 weeks. The Successor period from August 30, 2007 to February 3, 2008 includes 22 weeks and 4 days. The Predecessor period from January 29, 2007 to August 29, 2007 includes 30 weeks and 3 days. All other fiscal years reported include 52 weeks.

 

  (2) For the purposes of calculating the ratio of earnings to fixed charges, earnings consist of income from continuing operations before provision for income taxes plus fixed charges. Fixed charges include cash and non-cash interest expense, whether expensed or capitalized, amortization of debt issuance cost, amortization of the THD Guarantee and the portion of rental expense representative of the interest factor.

 

  (3) For the three months ended May 4, 2008, the fiscal year ended February 1, 2009, and the period from August 30, 2007 to February 3, 2008, our earnings were insufficient to cover fixed charges by $105 million, $1,442 million and $231 million, respectively.