EX-12.1 2 exhibit121-yefy18.htm EXHIBIT 12.1 Exhibit
EXHIBIT 12.1

NEIMAN MARCUS GROUP LTD LLC
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(UNAUDITED)

 
Fiscal year ended
 
Thirty-nine
weeks ended
 
 
Thirteen
weeks ended
 
(in thousands, except ratios)
July 28,
2018
 
July 29,
2017
 
July 30,
2016
 
August 1,
2015
 
August 2,
2014
 
 
November 2,
2013
 
 
(Successor)
 
(Successor)
 
(Successor)
 
(Successor)
 
(Successor)
 
 
(Predecessor)
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest on debt
$
291,328

 
$
277,642

 
$
268,395

 
$
267,752

 
$
216,281

 
 
$
34,998

 
Amortization of debt discount and expense
24,480

 
24,510

 
24,572

 
24,560

 
17,117

 
 
2,466

 
Interest element of rentals
34,056

 
33,693

 
34,320

 
33,462

 
23,232

 
 
7,293

 
Total fixed charges
$
349,864

 
$
335,845

 
$
327,287

 
$
325,774

 
$
256,630

 
 
$
44,757

 
Earnings (loss):
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings (loss) from continuing operations before income taxes
$
(210,934
)
 
$
(748,889
)
 
$
(547,251
)
 
$
28,076

 
$
(223,908
)
 
 
$
(5,179
)
 
Add back:
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges
349,864

 
335,845

 
327,287

 
325,774

 
256,630

 
 
44,757

 
Amortization of capitalized interest
1,670

 
1,540

 
2,180

 
1,208

 
886

 
 
295

 
Less:
 
 
 
 
 
 
 
 
 
 
 
 
 
Capitalized interest
(8,067
)
 
(6,270
)
 
(7,298
)
 
(2,361
)
 
(630
)
 
 
(140
)
 
Total earnings (loss)
$
132,533

 
$
(417,774
)
 
$
(225,082
)
 
$
352,697

 
$
32,978

 
 
$
39,733

 
Ratio of earnings to fixed charges (a)
 
(b)
 
(c)


(d)
1.1

 


(e)
 


(f)
 
(a)
Interest associated with income tax liabilities is excluded from our calculation.

(b)
For the fiscal year ended July 28, 2018, the aggregate amount of fixed charges exceeded our earnings by approximately $217.3 million, which is the amount of additional earnings that would have been required to achieve a ratio of earnings to fixed charges of 1.0x for such period.

(c)
For the fiscal year ended July 29, 2017, the aggregate amount of fixed charges exceeded our earnings by approximately $753.6 million, which is the amount of additional earnings that would have been required to achieve a ratio of earnings to fixed charges of 1.0x for such period. The deficiency of the ratio of earnings to fixed charges for fiscal year 2017 is due primarily to (1) pretax impairment charges related to (i) $309.7 million for the writedown to fair value of the net carrying value of tradenames, (ii) $196.2 million for the writedown to fair value of goodwill and (iii) $4.8 million for the writedown to fair value of the net carrying value of certain long-lived assets and (2) the continuation of adverse economic and business trends resulting in lower than expected revenues.

(d)
For the fiscal year ended July 30, 2016, the aggregate amount of fixed charges exceeded our earnings by approximately $552.4 million, which is the amount of additional earnings that would have been required to achieve a ratio of earnings to fixed charges of 1.0x for such period. The deficiency of the ratio of earnings to fixed charges for fiscal year 2016 is due primarily to the pretax impairment charges related to (i) $228.9 million for the writedown to fair value of the net carrying value of tradenames, (ii) $199.2 million for the writedown to fair value of goodwill and (iii) $38.1 million for the writedown to fair value of the net carrying value of certain long-lived assets.

(e)
For the thirty-nine weeks ended August 2, 2014, the aggregate amount of fixed charges exceeded our earnings by approximately $223.7 million, which is the amount of additional earnings that would have been required to achieve a ratio of earnings to fixed charges of 1.0x for such period.

(f)
For the thirteen weeks ended November 2, 2013, the aggregate amount of fixed charges exceeded our earnings by approximately $5.0 million, which is the amount of additional earnings that would have been required to achieve a ratio of earnings to fixed charges of 1.0x for such period.