EX-12.1 2 q3-f17form10xqex121.htm EX 12.1 Exhibit


Exhibit 12.1 
Ratio of Earnings to Fixed Charges
(In millions, except ratios) 
 
Year-To-Date Ended
 
Fiscal Year Ended
 
December 3, 2016 
 (40 weeks)
 
February 27, 2016 
 (52 weeks)
 
February 28, 2015 
 (53 weeks)
 
February 22, 2014(1)
(52 weeks)
 
February 23, 2013(2) 
(52 weeks)
 
February 25, 2012(3) 
(52 weeks)
Earnings (loss) from continuing operations before income taxes
$
10

 
$
107

 
$
12

 
$
(162
)
 
$
(581
)
 
$
(387
)
Less net earnings attributable to noncontrolling interests
(3
)
 
(8
)
 
(7
)
 
(7
)
 
(10
)
 
(13
)
Net overdistributed earnings of less than fifty percent owned affiliates
—

 
1

 
—

 
1

 
1

 
—

Fixed charges
161

 
220

 
269

 
430

 
304

 
290

Amortized capitalized interest
—

 
(1
)
 
(1
)
 
(1
)
 
(3
)
 
(5
)
Earnings (loss) available to cover fixed charges
$
168

 
$
319

 
$
273

 
$
261

 
$
(289
)
 
$
(115
)
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
143

 
196

 
243

 
403

 
269

 
246

Capitalized interest
—

 
1

 
1

 
1

 
3

 
5

Interest on operating leases
18

 
23

 
25

 
26

 
32

 
39

Total fixed charges
$
161

 
$
220

 
$
269

 
$
430

 
$
304

 
$
290

 
 
 
 
 
 
 
 
 
 
 
 
Excess (deficiency) of earnings to fixed charges
$
7

 
$
99

 
$
4

 
$
(169
)
 
$
(593
)
 
$
(405
)
Ratio of earnings to fixed charges
1.04

 
1.45

 
1.01

 
N/A

 
N/A

 
N/A


N/A represents a ratio of less than one.

(1)
The Company’s earnings available to cover fixed charges were insufficient to cover fixed charges for fiscal 2014 due to $99 of charges for the write-off of non-cash unamortized financing costs and original issue discount acceleration before tax, $75 of debt refinancing costs before tax, $44 of severance costs and accelerated stock-based compensation charges before tax, $13 of non-cash asset impairment and other charges before tax, $6 of contract breakage and other costs before tax, and $3 of multi-employer pension withdrawal charge before tax, offset in part by $15 of gain on sale of property before tax.
(2)
The Company’s earnings available to cover fixed charges were insufficient to cover fixed charges for fiscal 2013 due to $214 of non-cash asset impairment and other charges before tax, administrative expenses related to divested NAI operations, $36 of severance costs before tax, $22 of non-cash unamortized financing costs before tax and $6 of non-cash intangible asset impairment charges before tax, offset in part by $10 in a cash settlement received from credit card companies before tax.
(3)
The Company’s earnings available to cover fixed charges were insufficient to cover fixed charges for fiscal 2012 due to administrative expenses related to divested NAI operations, $92 of non-cash goodwill impairment charges before tax and severance costs of $15 before tax.