EX-12.1 271 d377366dex121.htm EX-12.1 EX-12.1

Exhibit 12.1

ALBERTSONS COMPANIES, LLC

Computation of Ratio of Earnings to Fixed Charges

(in millions and unaudited)

 

     Fiscal 2016     Fiscal 2015     Fiscal 2014     Fiscal 2013     Fiscal 2012  

Earnings:

           

Pre-tax (loss) income

    $ (463.6 )    $ (541.8 )    $ (1,378.6 )    $ 1,140.5     $ 31.5  

Income from unconsolidated affiliate (1)

      17.5       14.4       1.1       —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

(Loss) income before tax and unconsolidated affiliate

      (481.1 )      (556.2 )      (1,379.7 )      1,140.5       31.5  

Plus: fixed charges

           

Interest expense, net (2)

      1,003.8       950.5       633.2       390.1       7.2  

Capitalized interest

      7.8       2.1       0.5       0.1       —    

Portion of rent expense deemed to be interest

      268.5       260.4       125.3       101.4       18.0  

Interest income

      3.9       7.4       1.4       1.6       0.2  

Charges related to guarantee obligations

      1.6       30.6       —         —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed charges

      1,285.6       1,251.0       760.4       493.2       25.4  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Less: capitalized interest

      (7.8 )      (2.1 )      (0.5 )      (0.1 )      —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings:

    $ 796.7     $ 692.7     $ (619.8 )    $ 1,633.6     $ 56.9  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed Charges:

    $ 1,285.6     $ 1,251.0     $ 760.4     $ 493.2     $ 25.4  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings to fixed charges (3)

      —         —         —         3.3       2.2  

 

(1) Represents earnings related to the Company’s equity method investment in Casa Ley, S.A. de C.V.
(2) Interest expense, net does not include interest relating to liabilities for uncertain tax positions, which the Company records as a component of income tax expense.
(3) Due to the Company’s losses in fiscal 2016, fiscal 2015 and fiscal 2014, the ratio coverage was less than 1:1 in each of those periods. The Company would have needed to generate additional earnings of $488.9 million, $558.3 million and $1,380.2 million during fiscal 2016, fiscal 2015 and fiscal 2014, respectively, in order to achieve a coverage ratio of 1:1 during those periods.