EX-12 2 a2235393zex-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.

    Year Ended       March 3,   March 4,   February 27,   February 28,   March 1, 2018 2017 2016 2015 2014 Fixed charges: Interest expense \$ 202,768 \$ 200,065 \$ 186,132 \$ 116,997 \$ 127,569 Interest portion of net rental expense(1) 209,504 211,513 202,497 200,525 199,018 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fixed charges before capitalized interest and preferred stock dividend requirements 412,272 411,578 388,629 317,522 326,587 Preferred stock dividend requirements(2) — — — — 16,636 Capitalized interest 223 129 142 105 197 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total fixed charges 412,495 411,707 388,771 317,627 343,420 Earnings: (Loss) income before income taxes (43,545 ) 48,518 151,600 272,333 196,858 Preferred stock dividend requirements(2) — — — — (16,636 ) Fixed charges before capitalized interest 412,272 411,578 388,629 317,522 343,223 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total adjusted earnings 368,727 460,096 540,229 589,855 523,445 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings to fixed charges excess (deficiency) \$ (43,768 ) \$ 48,389 \$ 151,458 \$ 272,228 \$ 180,025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Ratio of earnings to fixed charges(3) 0.89 1.12 1.39 1.86 1.52

(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.

(3)
For the years ended March 1, 2014, February 28, 2015, February 27, 2016, and March 4, 2017 earnings were sufficient to cover fixed charges by approximately \$180.0 million, \$272.2 million, \$151.5 million, and \$48.4 million, respectively. For the year ended March 3, 2018, earnings were insufficient to cover fixed charges by approximately \$43.8 million.

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