EX-99.1 13 aciq4-18ex991.htm EXHIBIT 99.1 Exhibit
Exhibit 99.1




Albertsons Companies, Inc. and Subsidiaries
Computation of Ratio of Earnings to Fixed Charges
(in millions, except ratio)
(unaudited)
 
 
Fiscal
2018
 
Fiscal
2017
 
Fiscal
2016
 
Fiscal
2015
 
Fiscal
2014
Earnings:
 
 
 
 
 
 
 
 
 
Pre-tax income (loss)
$
52.2

 
$
(917.5
)
 
$
(463.6
)
 
$
(541.8
)
 
$
(1,378.6
)
Income from unconsolidated affiliate (1)
0.1

 
13.3

 
17.5

 
14.4

 
1.1

Income (loss) before tax and unconsolidated affiliate
52.1

 
(930.8
)
 
(481.1
)
 
(556.2
)
 
(1,379.7
)
Plus: fixed charges
 
 
 

 
 

 
 

 
 

Interest expense, net (2)
830.8

 
874.8

 
1,003.8

 
950.5

 
633.2

Capitalized interest
12.7

 
6.4

 
7.8

 
2.1

 
0.5

Portion of rent expense deemed to be interest
287.9

 
281.2

 
268.5

 
260.4

 
125.3

Interest income
19.7

 
6.8

 
3.9

 
7.4

 
1.4

Charges related to guarantee obligations

 

 
1.6

 
30.6

 

Total fixed charges
1,151.1

 
1,169.2

 
1,285.6

 
1,251.0

 
760.4

Less: capitalized interest
(12.7
)
 
(6.4
)
 
(7.8
)
 
(2.1
)
 
(0.5
)
Earnings:
$
1,190.5

 
$
232.0

 
$
796.7

 
$
692.7

 
$
(619.8
)
Fixed Charges:
$
1,151.1

 
$
1,169.2

 
$
1,285.6

 
$
1,251.0

 
$
760.4

Ratio of earnings to fixed charges (3)
1.0

 

 

 

 

(1) Represents earnings related to the Company’s equity method investments.
(2) Interest expense, net does not include interest relating to liabilities for uncertain tax positions, which the Company records as a component of income tax expense.
(3) Due to the Company’s losses during fiscal 2017, fiscal 2016, fiscal 2015 and fiscal 2014, the ratio coverage was less than 1:1 in each of those periods. The Company would have needed to generate additional earnings of $937.2 million, $488.9 million, $558.3 million and $1,380.2 million during fiscal 2017, fiscal 2016, fiscal 2015 and fiscal 2014, respectively, in order to achieve a coverage ratio of 1:1 during those periods.