EX-12.1 6 b323792_ex12-1.txt COMPUTATION OF RATIOS Exhibit 12.1 Toys "R" Us, Inc. Computation of Historical Ratios of Earnings to Fixed Charges (a) (In Thousands, Except Ratio Data)
Nine Months Fiscal Year Ended Ended ---------------------------------------------------------------------------------- November 2, February 1, February 2, February 3, January 29, January 30, January 31, 2002 2003 (b) 2002 2001 2000 1999 1998 -------------------------------------------------------------------------------------------------- Consolidated pretax income (loss) from continuing operations $ (78,115) $ 360,824 $ 90,886 $ 636,856 $ 439,350 $ (106,159) $ 771,851 Share of pretax income of less than 50%-owned companies (5,181) (29,597) (28,813) (30,925) -- -- -- Minority interest in Toysrus - Japan (pre initial public offering) -- -- -- 1,316 9,584 5,804 5,927 Minority interest in Toysrus.com (12,178) (14,049) (22,278) (53,337) -- -- -- Interest 87,264 113,873 120,955 130,037 93,304 103,921 89,576 Interest capitalized during period (1,168) (1,428) (4,225) (2,789) (1,745) (2,160) (4,330) Amortization of debt issuance expense 5,414 6,762 4,757 3,091 5,280 5,387 2,542 Interest portion of rental expense 94,790 129,935 127,238 141,863 170,625 162,825 150,638 -------------------------------------------------------------------------------------------------- Adjusted income from continuing operations $ 90,826 $ 566,320 $ 288,520 $ 826,112 $ 716,398 $ 169,618 $ 1,016,204 ================================================================================================== Fixed Charges: Interest $ 87,264 $ 113,873 $ 120,955 $ 130,037 $ 93,304 $ 103,921 $ 89,576 Amortization of debt issuance expense 5,414 6,762 4,757 3,091 5,280 5,387 2,542 Interest portion of rental expense 94,790 129,935 127,238 141,863 170,625 162,825 150,638 -------------------------------------------------------------------------------------------------- Total Fixed Charges $ 187,468 $ 250,570 $ 252,950 $ 274,991 $ 269,209 $ 272,133 $ 242,756 ================================================================================================== Ratio of Earnings to Fixed Charges -- (c) 2.26 1.14 3.00 2.66 -- (c) 4.19 ==================================================================================================
(a) For purpose of calculating the ratio of earnings to fixed charges, earnings were calculated by adding (i) earnings from continuing operations before minority interest and income taxes, (ii) interest expense, including the portion of rents representative of an interest factor, (iii) amortization of debt issue costs, and (iv) the amount of the company's undistributed (income) losses of less than 50%-owned companies. Fixed charges consist of interest expense, amortization of debt issue costs, and the portion of rents representative of an interest factor. (b) Preliminary, subject to audit of financial statements for the fiscal year ended February 1, 2003. (c) Earnings were insufficient to cover fixed charges for the nine months ended November 2, 2002 by $97 million and for the fiscal year ended January 30, 1999 by $103 million. Therefore the ratio is less than 1 to 1 and is not shown.