EX-12 8 shldex12201610k.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Exhibit


Exhibit 12
COMPUTATION OF RATIO OF INCOME TO COMBINED FIXED CHARGES
SEARS HOLDINGS CORPORATION AND CONSOLIDATED SUBSIDIARIES
 
 
 
Year Ended
(millions, except ratios)
 
2016
 
2015
 
2014
 
2013
 
2012
Fixed Charges
 
 
 
 
 
 
 
 
 
 
Interest and amortization of debt discount and expense on all indebtedness
 

$377

 

$289

 

$276

 

$214

 

$216

Add interest element implicit in rentals
 
249

 
240

 
241

 
259

 
280

 
 
626

 
529

 
517

 
473

 
496

Interest capitalized
 
—

 
2

 
2

 
2

 
1

Total fixed charges
 

$626

 

$531

 

$519

 

$475

 

$497

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

($2,395
)
 

($1,385
)
 

($1,685
)
 

($972
)
 

($1,010
)
Deduct undistributed net income of unconsolidated companies
 
—

 
—

 
37

 
185

 
47

 
 
(2,395
)
 
(1,385
)
 
(1,722
)
 
(1,157
)
 
(1,057
)
Add
 
 
 
 
 
 
 
 
 
 
Fixed charges (excluding interest capitalized)
 
626

 
529

 
517

 
473

 
496

Income before fixed charges and income taxes
 

($1,769
)
 

($856
)
 

($1,205
)
 

($684
)
 

($561
)
Ratio of income to fixed charges
 
(2.83
)
 
(1.61
)
 
(2.32
)
 
(1.44
)
 
(1.13
)