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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 27, February 28, March 1, March 2, March 3,
2016 2015 2014 2013 2012
(52 Weeks) (52 Weeks) (52 Weeks) (52 Weeks) (53 Weeks)
(dollars in thousands)
Fixed charges:
Interest expense ................... $ 449,574 $ 397,612 $424,591 $515,421 $ 529,255
Interest portion of net rental expense(1) . . 324,449 321,495 317,592 317,080 325,631
Fixed charges before capitalized interest
and preferred stock dividend
requirements .................... 774,023 719,107 742,183 832,501 854,886
Preferred stock dividend requirements(2) . — — 16,636 21,056 19,838
Capitalized interest ................. 196 145 197 399 315
Total fixed charges ................. 774,219 719,252 759,016 853,956 875,039
Earnings:
Income (loss) before income taxes ...... 278,404 426,820 250,218 7,505 (392,257)
Preferred stock dividend requirements(2) . — — (16,636) (21,056) (19,838)
Fixed charges before capitalized interest . . 774,023 719,107 758,819 853,557 874,724
Total adjusted earnings .............. 1,052,427 1,145,927 992,401 840,006 462,629
Earnings to fixed charges excess (deficiency) $ 278,208 $ 426,675 $233,385 $(13,950) $(412,410)
Ratio of earnings to fixed charges(3) .... 1.36 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 March 3, 2012, and March 2, 2013, earnings were insufficient to cover fixed
charges by approximately $412.4 million, and $14.0 million, respectively. For the years ended
March 1, 2014, February 28, 2015 and February 27, 2016, earnings were sufficient to cover fixed
charges by approximately $233.4 million, $426.7 million and $278.2 million, respectively.