Rite Aid 2014 Annual Report Download - page 115

Download and view the complete annual report

Please find page 115 of the 2014 Rite Aid annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 122

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122

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
March 1, March 2, March 3, February 26, February 27,
2014 2013 2012 2011 2010
(52 Weeks) (52 Weeks) (53 Weeks) (52 Weeks) (52 Weeks)
(dollars in thousands)
Fixed charges:
Interest expense .................. $424,591 $515,421 $ 529,255 $ 547,581 $ 515,763
Interest portion of net rental expense(1) 317,592 317,080 325,631 321,888 320,506
Fixed charges before capitalized interest
and preferred stock dividend
requirements ................... 742,183 832,501 854,886 869,469 836,269
Preferred stock dividend
requirements(2) ................ 16,636 21,056 19,838 18,692 17,614
Capitalized interest ................ 197 399 315 509 859
Total fixed charges ................ 759,016 853,956 875,039 888,670 854,742
Earnings:
Income (loss) before income taxes ..... 250,218 7,505 (392,257) (545,582) (479,918)
Preferred stock dividend
requirements(2) ................ (16,636) (21,056) (19,838) (18,692) (17,614)
Fixed charges before capitalized interest 758,819 853,557 874,724 888,161 853,883
Total adjusted earnings (loss) ........ 992,401 840,006 462,629 323,887 356,351
Earnings to fixed charges excess
(deficiency) ..................... $233,385 $ (13,950) $(412,410) $(564,783) $(498,391)
Ratio of earnings to fixed charges(3) . . . 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 27, 2010, February 26, 2011, March 3, 2012, and March 2, 2013,
earnings were insufficient to cover fixed charges by approximately $498.4 million, $564.8 million,
$412.4 million, and $14.0 million, respectively. For the year ended March 1, 2014, earnings were
sufficient to cover fixed charges by approximately $233.4 million.