EXHIBIT 99.1

 

Schedule of computation of ratio of earnings to fixed charges of The Kroger Co. and consolidated subsidiary companies for the five fiscal years ended February 1, 2003 and for the quarters ended May 24, 2003 and May 25, 2002.

 

     May 24,
2003
(16 weeks)
     May 25,
2002
(16 weeks)
    

February 1,
2003

(52 weeks)

    

February 2,
2002

(52 weeks)

    

February 3,
2001

(53 weeks)

    

January 29,
2000

(52 weeks)

    

January 2,
1999

(53 weeks)

  
     (in millions of dollars)  

Earnings:

                                                         

Earnings before tax expense (1)

    $ 563     $ 515     $ 1,954     $ 1,711     $ 1,503     $ 1,087     $ 470  

Fixed charges (1)

      305       311       998       1,030       1,063       1,025       1,457  

Capitalized interest

      (2 )     (2 )     (5 )     (9 )     (7 )     (5 )     (9 )
    
 
 
 
 
 
 
     $ 866     $ 824     $ 2,947     $ 2,732     $ 2,559     $ 2,107     $ 1,918  
    
 
 
 
 
 
 

Fixed charges:

                                                         

Interest (1)

    $ 192     $ 195     $ 624     $ 659     $ 688     $ 659     $ 1,073  

Portion of rental Payments deemed to be interest

      113       116       374       371       375       366       384  
    
 
 
 
 
 
 
     $ 305     $ 311     $ 998     $ 1,030     $ 1,063     $ 1,025     $ 1,457  
    
 
 
 
 
 
 

Ratio of earnings to fixed charges (1)

      2.8       2.6       3.0       2.7       2.4       2.1       1.3  

 

(1)   Amounts have been adjusted for the Company’s adoption of SFAS No. 145 on February 2, 2003. Adoption of this Statement required the Company to reclassify the debt extinguishments recorded as extraordinary items in prior periods as interest expense in those periods. These debt extinguishments totaled $19 million, $5 million, $15 million and $419 million, pre-tax, in the fiscal years ended February 1, 2003, February 3, 2001, January 29, 2000, January 2, 1999, respectively. These debt extinguishments totaled $4 million, pre-tax, in the quarter ended May 25, 2002. There were no debt extinguishments recorded as extraordinary items during the fiscal year ended February 2, 2002.