EX-12 7 shldex12201210k.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES SHLDEX12201210K


Exhibit 12
COMPUTATION OF RATIO OF INCOME TO COMBINED FIXED CHARGES
SEARS HOLDINGS CORPORATION AND CONSOLIDATED SUBSIDIARIES
 
 
 
Year Ended
(millions, except ratios)
 
2012
 
2011
 
2010
 
2009
 
2008
Fixed Charges
 
 
 
 
 
 
 
 
 
 
Interest and amortization of debt discount and expense on all indebtedness
 

$216

 

$225

 

$211

 

$176

 

$179

Add interest element implicit in rentals
 
280

 
285

 
288

 
296

 
296

 
 
496

 
510

 
499

 
472

 
475

Interest capitalized
 
1

 
1

 
—

 
—

 
—

Total fixed charges
 

$497

 

$511

 

$499

 

$472

 

$475

Income
 
 
 
 
 
 
 
 
 
 
Income before income taxes, noncontrolling interest, and extraordinary loss
 

($1,010
)
 

($1,751
)
 

$166

 

$391

 

$415

Deduct undistributed net income of unconsolidated companies
 
47

 
27

 
17

 
11

 
11

 
 
(1,057
)
 
(1,778
)
 
149

 
380

 
404

Add
 
 
 
 
 
 
 
 
 
 
Fixed charges (excluding interest capitalized)
 
496

 
510

 
499

 
472

 
475

Income before fixed charges and income taxes
 

($561
)
 

($1,268
)
 

$648

 

$852

 

$879

Ratio of income to fixed charges
 
(1.13
)
 
(2.48
)
 
1.30

 
1.81

 
1.85