Exhibit 12.1
SAFEWAY INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions)
| Fiscal Year | ||||||||||||||||||||
| 52 Weeks 2005 |
52 Weeks 2004 |
53 Weeks 2003 |
52 Weeks 2002 |
52 Weeks 2001 |
||||||||||||||||
| Income before income taxes and cumulative effect of accounting change |
$ | 849.0 | $ | 793.9 | $ | 141.1 | $ | 532.3 | $ | 2,095.0 | ||||||||||
| Add interest expense |
402.6 | 411.2 | 442.4 | 430.8 | 446.9 | |||||||||||||||
| Add interest on rental expense (a) |
256.7 | 258.2 | 258.6 | 257.6 | 242.4 | |||||||||||||||
| (Less) add equity in (earnings) losses of unconsolidated affiliates, net |
(15.8 | ) | (12.6 | ) | 7.1 | 0.2 | (20.2 | ) | ||||||||||||
| (Less) add minority interest in subsidiary |
(8.5 | ) | (10.1 | ) | (10.4 | ) | (5.5 | ) | — | |||||||||||
| Earnings |
$ | 1,484.0 | $ | 1,440.6 | $ | 838.8 | $ | 1,215.4 | $ | 2,764.1 | ||||||||||
| Interest expense |
$ | 402.6 | $ | 411.2 | $ | 442.4 | $ | 430.8 | $ | 446.9 | ||||||||||
| Add capitalized interest |
16.0 | 19.7 | 21.9 | 31.0 | 25.7 | |||||||||||||||
| Add interest on rental expense (a) |
256.7 | 258.2 | 258.6 | 257.6 | 242.4 | |||||||||||||||
| Fixed charges |
$ | 675.3 | $ | 689.1 | $ | 722.9 | $ | 719.4 | $ | 715.0 | ||||||||||
| Ratio of earnings to fixed charges |
2.20 | 2.09 | 1.16 | 1.69 | 3.87 | |||||||||||||||
| (a) | Based on a 10% discount factor on the estimated present value of future operating lease payments. |