Attached files
EXHIBIT 12
Toys “R” Us, Inc.
Computation of Historical Ratios of Earnings to Fixed Charges (a)
(In Thousands, Except Ratio Data)
| Fiscal Years Ended | ||||||||||||||||||||
| January 30, 2010 |
January 31, 2009 |
February 2, 2008 |
February 3, 2007 |
January 28, 2006 |
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| Consolidated pretax income (loss) from continuing operations |
$ | 344,176 | $ | 218,009 | $ | 220,071 | $ | 143,378 | $ | (505,542 | ) | |||||||||
| Share of pretax income of less than 50%-owned companies |
— | — | — | — | 2,969 | |||||||||||||||
| Noncontrolling interest in Toys – Japan |
(7,660 | ) | (7,440 | ) | 2,254 | (1,444 | ) | — | ||||||||||||
| Interest capitalized during period |
(409 | ) | (1,051 | ) | (627 | ) | (365 | ) | (437 | ) | ||||||||||
| Total fixed charges |
677,247 | 600,504 | 656,191 | 729,317 | 508,175 | |||||||||||||||
| Adjusted income from continuing operations |
$ | 1,013,354 | $ | 810,022 | $ | 877,889 | $ | 870,886 | $ | 5,165 | ||||||||||
| Fixed Charges: |
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| Interest expense |
$ | 447,115 | $ | 419,173 | $ | 502,691 | $ | 536,762 | $ | 394,257 | ||||||||||
| Interest capitalized during period |
409 | 1,051 | 627 | 365 | 437 | |||||||||||||||
| Adjustment to deferred financing amortization – U.S. bridge debt |
— | — | — | — | (32,455 | ) | ||||||||||||||
| Interest portion of rental expense |
229,723 | 180,280 | 152,873 | 192,190 | 145,936 | |||||||||||||||
| Total Fixed Charges |
$ | 677,247 | $ | 600,504 | $ | 656,191 | $ | 729,317 | $ | 508,175 | ||||||||||
| Ratio of Earnings to Fixed Charges |
1.50 | 1.35 | 1.34 | 1.19 | ||||||||||||||||
| Deficiency of Earnings over Fixed Charges |
$ | (503,010 | ) | |||||||||||||||||
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(a) For purposes of calculating the ratio of earnings to fixed charges, earnings were calculated by adding (i) earnings from continuing operations before noncontrolling interest and income taxes, (ii) interest expense, including the portion of rents representative of an interest factor, (iii) amortization of debt issue costs and (iv) the amount of the company's undistributed (income) losses of less than 50%-owned companies. Fixed charges consist of interest expense, amortization of debt issue costs and the portions of rents representative of an interest factor. |
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| Rent expense, net of sublease income |
518,722 | 502,944 | 475,943 | 437,891 | 299,050 | |||||||||||||||
| Capitalization factor |
5.3 | 6.7 | 7.3 | 6.6 | 6.1 | |||||||||||||||
| Weighted average cost of long-term debt |
8.3 | % | 5.3 | % | 4.4 | % | 6.7 | % | 8.0 | % | ||||||||||
| Interest in rent expense |
229,723 | 180,280 | 152,873 | 192,190 | 145,936 | |||||||||||||||
| % of interest to rent expense |
44 | % | 36 | % | 32 | % | 44 | % | 49 | % | ||||||||||