Exhibit 12.1
ALBERTSONS COMPANIES, LLC
Computation of Ratio of Earnings to Fixed Charges
(in millions and unaudited)
| Fiscal 2016 | Fiscal 2015 | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | ||||||||||||||||
| Earnings: |
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| Pre-tax (loss) income |
$ | (463.6 | ) | $ | (541.8 | ) | $ | (1,378.6 | ) | $ | 1,140.5 | $ | 31.5 | |||||||
| Income from unconsolidated affiliate (1) |
17.5 | 14.4 | 1.1 | — | — | |||||||||||||||
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| (Loss) income before tax and unconsolidated affiliate |
(481.1 | ) | (556.2 | ) | (1,379.7 | ) | 1,140.5 | 31.5 | ||||||||||||
| Plus: fixed charges |
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| Interest expense, net (2) |
1,003.8 | 950.5 | 633.2 | 390.1 | 7.2 | |||||||||||||||
| Capitalized interest |
7.8 | 2.1 | 0.5 | 0.1 | — | |||||||||||||||
| Portion of rent expense deemed to be interest |
268.5 | 260.4 | 125.3 | 101.4 | 18.0 | |||||||||||||||
| Interest income |
3.9 | 7.4 | 1.4 | 1.6 | 0.2 | |||||||||||||||
| Charges related to guarantee obligations |
1.6 | 30.6 | — | — | — | |||||||||||||||
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| Total fixed charges |
1,285.6 | 1,251.0 | 760.4 | 493.2 | 25.4 | |||||||||||||||
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| Less: capitalized interest |
(7.8 | ) | (2.1 | ) | (0.5 | ) | (0.1 | ) | — | |||||||||||
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| Earnings: |
$ | 796.7 | $ | 692.7 | $ | (619.8 | ) | $ | 1,633.6 | $ | 56.9 | |||||||||
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| Fixed Charges: |
$ | 1,285.6 | $ | 1,251.0 | $ | 760.4 | $ | 493.2 | $ | 25.4 | ||||||||||
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| Ratio of earnings to fixed charges (3) |
— | — | — | 3.3 | 2.2 | |||||||||||||||
| (1) | Represents earnings related to the Company’s equity method investment in Casa Ley, S.A. de C.V. |
| (2) | Interest expense, net does not include interest relating to liabilities for uncertain tax positions, which the Company records as a component of income tax expense. |
| (3) | Due to the Company’s losses in fiscal 2016, fiscal 2015 and fiscal 2014, the ratio coverage was less than 1:1 in each of those periods. The Company would have needed to generate additional earnings of $488.9 million, $558.3 million and $1,380.2 million during fiscal 2016, fiscal 2015 and fiscal 2014, respectively, in order to achieve a coverage ratio of 1:1 during those periods. |