EX-12 2 hd-1292012xexx12.htm STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES HD-1.29.2012-EX-12


Exhibit 12
 
THE HOME DEPOT, INC. AND SUBSIDIARIES
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(amounts in millions, except ratio data)
 
 
Fiscal Year (1) 
 
 
2011 
 
 
2010 
 
 
2009 
 
 
2008 
 
 
2007 
 
Earnings From Continuing Operations Before Income Taxes
$
6,068

 
$
5,273

 
$
3,982

 
$
3,590

 
$
6,620

Less: Capitalized Interest
(3
)
 
(3
)
 
(4
)
 
(20
)
 
(46
)
Add:
 
 
 
 
 
 
 
 
 
Portion of Rental Expense under operating leases deemed to be the equivalent of interest
280

 
278

 
277

 
286

 
279

Interest Expense
609

 
533

 
680

 
644

 
741

Adjusted Earnings
$
6,954

 
$
6,081

 
$
4,935

 
$
4,500

 
$
7,594

Fixed Charges:
 
 
 
 
 
 
 
 
 
Interest Expense
$
609

 
$
533

 
$
680

 
$
644

 
$
741

Portion of Rental Expense under operating leases deemed to be the equivalent of interest
280

 
278

 
277

 
286

 
279

Total Fixed Charges
$
889

 
$
811

 
$
957

 
$
930

 
$
1,020

Ratio of Earnings to Fixed Charges(2)
7.8x

 
7.5x

 
5.2x

 
4.8x

 
7.4x

 
(1)
Fiscal years 2011, 2010, 2009, 2008 and 2007 refer to the fiscal years ended January 29, 2012, January 30, 2011, January 31, 2010, February 1, 2009,  and February 3, 2008, respectively. Fiscal year 2007 includes 53 weeks; all other fiscal years reported include 52 weeks.
(2)
For purposes of computing the ratios of earnings to fixed charges, “earnings” consist of earnings from continuing operations before income taxes plus fixed charges, excluding capitalized interest. “Fixed charges” consist of interest incurred on indebtedness including capitalized interest, amortization of debt expenses and the portion of rental expense under operating leases deemed to be the equivalent of interest. The ratios of earnings to fixed charges are calculated as follows:
(earnings from continuing operations before income taxes) + (fixed charges) - (capitalized interest)
(fixed charges)