EX-12 2 a2224689zex-12.htm EX-12

Exhibit 12

 

RITE AID CORPORATION AND SUBSIDIARIES
STATEMENT REGARDING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

We have calculated the ratio of earnings to fixed charges in the following table by dividing earnings by fixed charges. For this purpose, earnings include pre-tax income from continuing operations plus fixed charges, before capitalized interest. Fixed charges include interest, whether expensed or capitalized, amortization of debt expense, preferred stock dividend requirement and that portion of rental expense which is representative of the interest factor in those rentals.

 

 

 

26 Week Period Ended

 

Fiscal Year Ended

 

 

 

August 29,
2015

 

August 30,
2014

 

February 28,
2015
(52 weeks)

 

March 1,
2014
(52 weeks)

 

March 2,
2013
(52 weeks)

 

March 3,
2012
(53 weeks)

 

February 26,
2011
(52 weeks)

 

 

 

(Dollars in Thousands)

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

$

239,017

 

$

201,770

 

$

397,612

 

$

424,591

 

$

515,421

 

$

529,255

 

$

547,581

 

Interest portion of net rental expense(1)

 

160,783

 

158,502

 

321,495

 

317,592

 

317,080

 

325,631

 

321,888

 

Fixed charges before capitalized interest

 

399,800

 

360,272

 

719,107

 

742,183

 

832,501

 

854,886

 

869,469

 

Capitalized interest

 

87

 

90

 

145

 

197

 

399

 

315

 

509

 

Total fixed charges

 

399,887

 

360,362

 

719,252

 

742,380

 

832,900

 

855,201

 

869,978

 

Preferred stock dividend requirement(2)

 

—

 

—

 

—

 

16,636

 

21,056

 

19,838

 

18,692

 

Total combined fixed charges and preferred stock dividends

 

$

399,887

 

$

360,362

 

$

719,252

 

$

759,016

 

$

853,956

 

$

875,039

 

$

888,670

 

Earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

$

69,209

 

$

201,036

 

$

426,820

 

$

250,218

 

$

7,505

 

$

(392,257

)

$

(545,582

)

Fixed charges before capitalized interest

 

399,800

 

360,272

 

719,107

 

742,183

 

832,501

 

854,886

 

869,469

 

Total earnings and fixed charges

 

469,009

 

561,308

 

1,145,927

 

992,401

 

840,006

 

462,629

 

323,887

 

Ratio of earnings to fixed charges

 

1.17

x

1.56

x

1.59

x

1.31

x

—

 

—

 

—

 

Excess (deficiency) of earnings to combined fixed charges and preferred stock dividends

 

$

69,122

 

$

200,946

 

$

426,675

 

$

233,385

 

$

(13,950

)

$

(412,410

)

$

(564,783

)

 

(1)         The interest portion of net rental expense is estimated to be equal to one-third of the minimum rental expense for the period.

 

(2)         The preferred stock dividend requirement is computed as the pre- tax earnings that would be required to cover preferred stock dividends.