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EXHIBIT 12.1
Neiman Marcus Group LTD LLC
Computation of Ratio of Earnings to Fixed Charges
(Unaudited)
Thirty-nine
weeks ended
Thirteen
weeks ended
Fiscal
year ended
Fiscal
year ended
Fiscal
year ended
Fiscal
year ended
(in thousands, except ratios)
August 2,
2014
November 2,
2013
August 3,
2013
July 28,
2012
July 30,
2011
July 31,
2010
(Successor)
(Predecessor)
(Predecessor)
(Predecessor)
(Predecessor)
(Predecessor)
Fixed Charges:
Interest on debt
$ 216,281
$ 34,998
$ 160,839
$ 167,916
$ 266,816
$ 219,400
Amortization of debt discount
and expense
17,117
2,466
8,404
8,457
14,661
18,697
Interest element of rentals
23,232
7,293
29,139
27,687
26,301
25,146
Total fixed charges
$ 256,630
$ 44,757
$ 198,382
$ 204,060
$ 307,778
$ 263,243
(Loss) earnings:
(Loss) earnings from continuing
operations before income
taxes
$ (223,908)
$ (5,179)
$ 277,432
$ 228,337
$ 49,264
$ (5,313)
Add back:
Fixed charges
256,630
44,757
198,382
204,060
307,778
263,243
Amortization of capitalized
interest
886
295
1,181
1,142
1,115
1,112
Less:
Capitalized interest
(630)
(140)
(237)
(1,080)
(535)
(286)
Total earnings
$ 32,978
$ 39,733
$ 476,758
$ 432,459
$ 357,622
$ 258,756
Ratio of earnings to fixed charges
(a)
(b)
(c) 2.4
2.1
1.2
(d)
(a) Interest associated with income tax liabilities is excluded from our calculation.
(b) For the thirty-nine weeks ended August 2, 2014, the aggregate amount of fixed charges exceeded our earnings by approximately $223.7 million,
which is the amount of additional earnings that would have been required to achieve a ratio of earnings to fixed charges of 1.0x for such period.
(c) For the thirteen weeks ended November 2, 2013, the aggregate amount of fixed charges exceeded our earnings by approximately $5.0 million, which
is the amount of additional earnings that would have been required to achieve a ratio of earnings to fixed charges of 1.0x for such period.
(d) For fiscal year 2010, the aggregate amount of fixed charges exceeded our earnings by approximately $4.5 million, which is the amount of additional
earnings that would have been required to achieve a ratio of earnings to fixed charges of 1.0x for such period.