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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
February 28, March 1, March 2, March 3, February 26,
2015 2014 2013 2012 2011
(52 Weeks) (52 Weeks) (52 Weeks) (53 Weeks) (52 Weeks)
(dollars in thousands)
Fixed charges:
Interest expense ................... $ 397,612 $424,591 $515,421 $ 529,255 $ 547,581
Interest portion of net rental expense(1) . . 321,495 317,592 317,080 325,631 321,888
Fixed charges before capitalized interest
and preferred stock dividend
requirements .................... 719,107 742,183 832,501 854,886 869,469
Preferred stock dividend requirements(2) . — 16,636 21,056 19,838 18,692
Capitalized interest ................. 145 197 399 315 509
Total fixed charges .................. 719,252 759,016 853,956 875,039 888,670
Earnings:
Income (loss) before income taxes ...... 426,820 250,218 7,505 (392,257) (545,582)
Preferred stock dividend requirements(2) . — (16,636) (21,056) (19,838) (18,692)
Fixed charges before capitalized interest . . 719,107 758,819 853,557 874,724 888,161
Total adjusted earnings .............. 1,145,927 992,401 840,006 462,629 323,887
Earnings to fixed charges excess (deficiency) $ 426,675 $233,385 $ (13,950) $(412,410) $(564,783)
Ratio of earnings to fixed charges(3) .... 1.59 1.31 — — —
(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, February 26, 2011, March 3, 2012, and March 2, 2013, earnings were
insufficient to cover fixed charges by approximately $564.8 million, $412.4 million, and
$14.0 million, respectively. For the years ended March 1, 2014 and February 28, 2015, earnings
were sufficient to cover fixed charges by approximately $233.4 million and $426.7 million,
respectively.