EX-12 8 a12.htm STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES 12
EXHIBIT 12

Toy "R" Us, Inc.
Computation of Historical Ratios of Earnings to Fixed Charges (a) 
(In Millions, Except Ratio Data)

 
 
Fiscal Years Ended
(In millions)
 
January 28, 2012
January 29, 2011
January 30, 2010
January 31, 2009
February 2, 2008
Consolidated pretax earnings from continuing operations
 
$
150

$
132

$
344

$
218

$
220

Noncontrolling interest
 
2

(1
)
(8
)
(7
)
2

Interest capitalized during period
 
(1
)
(1
)
—

(1
)
(1
)
Total fixed charges
 
688

756

677

600

657

Adjusted earnings from continuing operations
 
$
839

$
886

$
1,013

$
810

$
878

 
 
 
 
 
 
 
Fixed Charges
 
 
 
 
 
 
Interest expense
 
$
442

$
521

$
447

$
419

$
503

Interest capitalized during the period
 
1

1

—

1

1

Interest portion of rental expense
 
245

234

230

180

153

Total Fixed Charges
 
$
688

$
756

$
677

$
600

$
657

Ratio of Earnings to Fixed Charges
 
1.22

1.17

1.50

1.35

1.34

(a) For purposes of calculating the ratio of earnings to fixed charges, earnings were calculated by adding (i) earnings from continuing operations before noncontrolling interest and income taxes, (ii) interest expense, including the portion of rents representative of an interest factor and (iii) amortization of debt issuance costs. Fixed charges consist of interest expense, amortization of debt issuance costs and the portions of rents representative of an interest factor.

Rent expense, net of sublease income
 
$
588

$
570

$
519

$
503

$
476

Capitalization factor
 
5.2

5.0

5.3

6.7

7.3

Weighted average cost of long-term debt
 
8.0
%
8.2
%
8.3
%
5.3
%
4.4
%
Interest in rent expense
 
$
245

$
234

$
230

$
180

$
153

% of interest to rent expense
 
42
%
41
%
44
%
36
%
32
%