SAFEWAY INC. | |||||||||||||||
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES | |||||||||||||||
(Dollars in millions) | |||||||||||||||
53 Weeks 2014 | 52 Weeks 2013 | 52 Weeks 2012 | 52 Weeks 2011 | 52 Weeks 2010 | |||||||||||
Income before income taxes | $ | 165.0 | $ | 251.6 | $ | 362.2 | $ | 398.0 | $ | 474.7 | |||||
Add interest expense | 198.9 | 273.0 | 300.6 | 268.1 | 295.0 | ||||||||||
Add interest on rental expense (a) | 206.7 | 199.1 | 193.7 | 194.2 | 192.7 | ||||||||||
Less equity in earnings of unconsolidated affiliate, net | (16.2 | ) | (17.6 | ) | (17.5 | ) | (13.0 | ) | (15.3 | ) | |||||
Earnings | $ | 554.4 | $ | 706.1 | $ | 839.0 | $ | 847.3 | $ | 947.1 | |||||
Interest expense | $ | 198.9 | $ | 273.0 | $ | 300.6 | $ | 268.1 | $ | 295.0 | |||||
Add capitalized interest | 6.2 | 8.8 | 10.9 | 14.0 | 10.5 | ||||||||||
Add interest on rental expense (a) | 206.7 | 199.1 | 193.7 | 194.2 | 192.7 | ||||||||||
Fixed charges | $ | 411.8 | $ | 480.9 | $ | 505.2 | $ | 476.3 | $ | 498.2 | |||||
Ratio of earnings to fixed charges | 1.3 | 1.5 | 1.7 | 1.8 | 1.9 | ||||||||||
(a) Based on an 8.5% discount factor on the estimated present value of future operating lease payments. | |||||||||||||||