EX-12 11 dex12.htm STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Statement re: computation of ratio of earnings to fixed charges

EXHIBIT 12

Toys “R” Us, Inc.

Computation of Historical Ratios of Earnings to Fixed Charges (a)

(In Thousands, Except Ratio Data)

 

     Fiscal Years Ended  
     January 29,
2011
    January 30,
2010
    January 31,
2009
    February 2,
2008
    February 3,
2007
 

Consolidated pretax earnings from continuing operations

   $ 132,267      $ 344,176      $ 218,009      $ 220,071      $ 143,378   

Noncontrolling interest in Toys – Japan

     (1,263     (7,660     (7,440     2,254        (1,444

Interest capitalized during period

     (572     (409     (1,051     (627     (365

Total fixed charges

     755,418        677,247        600,504        656,191        729,317   
                                        

Adjusted earnings from continuing operations

   $ 885,850      $ 1,013,354      $ 810,022      $ 877,889      $ 870,886   
                                        

Fixed Charges:

          

Interest expense

   $ 521,021      $ 447,115      $ 419,173      $ 502,691      $ 536,762   

Interest capitalized during period

     572        409        1,051        627        365   

Interest portion of rental expense

     233,825        229,723        180,280        152,873        192,190   
                                        

Total Fixed Charges

   $ 755,418      $ 677,247      $ 600,504      $ 656,191      $ 729,317   
                                        

Ratio of Earnings to Fixed Charges

     1.17        1.50        1.35        1.34        1.19   
                                        

 

(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 issue costs. Fixed charges consist of interest expense, amortization of debt issue costs and the portions of rents representative of an interest factor.

          

Rent expense, net of sublease income

     570,305        518,722        502,944        475,943        437,891   

Capitalization factor

     5.0        5.3        6.7        7.3        6.6   

Weighted average cost of long-term debt

     8.2     8.3     5.3     4.4     6.7

Interest in rent expense

     233,825        229,723        180,280        152,873        192,190   

% of interest to rent expense

     41     44     36     32     44