EX-12 13 a2184764zex-12.htm EXHIBIT 12
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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.

 
  Year Ended
 
 
  March 1,
2008
(52 Weeks)

  March 3,
2007
(52 Weeks)

  March 4,
2006
(53 Weeks)

  February 26,
2005
(52 Weeks)

  February 28,
2004
(52 Weeks)

 
 
  (Dollar in thousand)

 
Fixed charges:                                
  Interest expense   $ 449,596   $ 275,219   $ 277,017   $ 294,871   $ 313,498  
  Interest portion of net rental expense(1)     287,934     195,592     189,756     185,313     184,391  
   
 
 
 
 
 
  Fixed charges before capitalized interest and preferred stock dividend requirements     737,530     470,811     466,773     480,184     497,889  
  Preferred stock dividend requirement(2)     65,066     62,910     65,446     54,194     37,074  
  Capitalized interest     2,069     1,474     934     250     133  
   
 
 
 
 
 
    Total fixed charges   $ 804,665   $ 535,195   $ 533,153   $ 534,628   $ 535,096  
   
 
 
 
 
 
Earnings:                                
  Income (loss) before income taxes   $ (273,499 ) $ 13,582   $ 43,254   $ 134,007   $ 34,584 )
  Preferred stock dividend requirement     (65,066 )   (62,910 )   (65,446 )   (54,194 )   (37,074 )
  Fixed charges before capitalized interest     802,596     533,721     532,219     534,378     534,963  
   
 
 
 
 
 
  Total adjusted earnings     464,031     484,393     510,027     614,191     532,473  
   
 
 
 
 
 
  Earnings to fixed charges (deficiency) excess   $ (340,634 ) $ (50,802 ) $ (23,126 ) $ 79,563   $ (2,623 )
   
 
 
 
 
 
  Ratio of earnings to fixed charges(3)                 1.15      
   
 
 
 
 
 

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

(3)
For the years ended February 28, 2004, March 4, 2006, March 3, 2007 and March 1, 2008 earnings were insufficient to cover fixed charges by approximately $2.6 million, $23.1 million, $50.8 million and $340.6 million, respectively.



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