EX-12.1 2 dex121.htm STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Statement of Computation of Ratio of Earnings to Fixed Charges

Exhibit 12.1

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)     Six  Months
Ended
August 1, 2010
     2005     2006     2007     2008     2009    
Earnings From Continuing Operations Before Income Taxes    $8,967      $8,502      $6,620      $3,590      $3,982      $3,017

Less: Capitalized Interest

    (51 )    (47 )    (46 )    (20 )    (4 )             (2)

Add:

             

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

    177      257      279      286      277          140

Interest Expense

    192      437      741      644      680          295
                                  

Adjusted Earnings

    $9,285      $9,149      $7,594      $4,500      $4,935      $3,450
                                  

Fixed Charges:

             

Interest Expense

    $   192      $   437      $   741      $   644      $   680      $   295

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

    177      257      279      286      277          140
                                  

Total Fixed Charges

    $   369      $   694      $1,020      $   930      $   957      $   435
                                  

Ratio of Earnings to Fixed Charges (2)

        25.2x          13.2x          7.4x              4.8x              5.2x          7.9x

 

(1)

Fiscal years 2009, 2008, 2007, 2006 and 2005 refer to the fiscal years ended January 31, 2010, February 1, 2009, February 3, 2008, January 28, 2007 and January 29, 2006, 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)