SAFEWAY INC. | |||||||||||||||
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES | |||||||||||||||
(Dollars in millions) | |||||||||||||||
52 Weeks 2013 | 52 Weeks 2012 | 52 Weeks 2011 | 52 Weeks 2010 | 53 Weeks 2009 | |||||||||||
Income (loss) before income taxes | $ | 336.0 | $ | 436.4 | $ | 458.4 | $ | 515.9 | $ | (1,293.2 | ) | ||||
Add interest expense | 273.0 | 300.7 | 268.1 | 294.9 | 327.8 | ||||||||||
Add interest on rental expense (a) | 200.4 | 194.3 | 194.3 | 192.7 | 196.6 | ||||||||||
Less equity in earnings of unconsolidated affiliate, net | (17.6 | ) | (17.5 | ) | (13.0 | ) | (15.3 | ) | (8.5 | ) | |||||
Noncontrolling interests | (14.7 | ) | (1.6 | ) | (1.5 | ) | (0.8 | ) | — | ||||||
Earnings (loss) | $ | 777.1 | $ | 912.3 | $ | 906.3 | $ | 987.4 | $ | (777.3 | ) | ||||
Interest expense | $ | 273.0 | $ | 300.7 | $ | 268.1 | $ | 294.9 | $ | 327.8 | |||||
Add capitalized interest | 8.8 | 10.9 | 14.0 | 10.5 | 7.3 | ||||||||||
Add interest on rental expense (a) | 200.4 | 194.3 | 194.3 | 192.7 | 196.6 | ||||||||||
Fixed charges | $ | 482.2 | $ | 505.9 | $ | 476.4 | $ | 498.1 | $ | 531.7 | |||||
Ratio of earnings to fixed charges (b) | 1.6 | 1.8 | 1.9 | 2.0 | NM | ||||||||||
(a) Based on an 8.5% discount factor on the estimated present value of future operating lease payments. | |||||||||||||||
(b) NM indicates not meaningful. In 2009, earnings were inadequate to cover fixed charges by approximately $1,309.0 million due to our recording non-cash goodwill impairment charges of $1,974.2 million, before tax. | |||||||||||||||