EX-12.1 15 a2223690zex-12_1.htm EX-12.1

Exhibit 12.1

 

HD SUPPLY, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions, except ratio data)

 

 

 

Fiscal year ended(1)

 

 

 

February 1,
2015

 

February 2,
2014

 

February 3,
2013

 

January 29,
2012

 

January 30,
2011

 

Income (loss) from continuing operations before provision (benefit) for income taxes

 

$

52

 

$

(163

)

$

(1,072

)

$

(514

)

$

(606

)

Add:

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

461

 

528

 

658

 

639

 

623

 

Portion of rental expense under operating leases deemed to be the equivalent of interest

 

51

 

46

 

42

 

46

 

46

 

Adjusted earnings

 

$

564

 

$

411

 

$

(372

)

$

171

 

$

63

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

$

461

 

$

528

 

$

658

 

$

639

 

$

623

 

Portion of rental expense under operating leases deemed to be the equivalent of interest

 

51

 

46

 

42

 

46

 

46

 

Total fixed charges

 

$

512

 

$

574

 

$

700

 

$

685

 

$

669

 

Ratio of earnings to fixed charges(2) (3)

 

1.1

x

 

 

 

 

 

 

 

 

 


(1)          The fiscal year ended February 3, 2013 includes 53 weeks. All other fiscal years reported include 52 weeks.

 

(2)          For the purposes of calculating the ratio of earnings to fixed charges, earnings consist of income from continuing operations before provision for income taxes plus fixed charges.  Fixed charges include cash and non-cash interest expense, whether expensed or capitalized, amortization of debt issuance cost, amortization of the THD Guarantee and the portion of rental expense representative of the interest factor.

 

(3)          For fiscal years ended February 2, 2014, February 3, 2013, January 29, 2012, and January 30, 2011, our earnings were insufficient to cover fixed charges by $163 million, $1,072 million, $514 million, and $606 million, respectively.