Exhibit 12.1
Computation of Ratio of Earnings to Fixed Charges and Preferred Share Dividends
(in millions, except ratios) | Fiscal 2018 | Fiscal 2017 | Fiscal 2016 | Fiscal 2015 | Fiscal 2014 | ||||||||||||||
Earnings: | |||||||||||||||||||
Income before income taxes | $ | 527.2 | $ | 713.8 | $ | 657.8 | $ | 540.6 | $ | 566.5 | |||||||||
Fixed charges (see below) | 228.7 | 224.2 | 221.1 | 190.3 | 111.9 | ||||||||||||||
Total earnings | $ | 755.9 | $ | 938.0 | $ | 878.9 | $ | 730.9 | $ | 678.4 | |||||||||
Fixed charges: | |||||||||||||||||||
Interest expense, net(1) | $ | 49.0 | $ | 46.6 | $ | 42.3 | $ | 28.6 | $ | 3.6 | |||||||||
Amortization of debt discount and issuance costs(1) | 3.7 | 2.8 | 3.6 | 7.4 | 0.4 | ||||||||||||||
Estimate of interest within rental expense(2) | 176.0 | 174.8 | 175.2 | 154.3 | 107.9 | ||||||||||||||
Total fixed charges | $ | 228.7 | $ | 224.2 | $ | 221.1 | $ | 190.3 | $ | 111.9 | |||||||||
Ratio of earnings to fixed charges | 3.31 | 4.18 | 3.98 | 3.84 | 6.06 | ||||||||||||||
Fixed charges and preferred share dividends: | |||||||||||||||||||
Fixed charges (per above) | $ | 228.7 | $ | 224.2 | $ | 221.1 | $ | 190.3 | $ | 111.9 | |||||||||
Preferred share dividends(3) | 33.4 | 15.6 | n/a | n/a | n/a | ||||||||||||||
Total fixed charges and preferred share dividends | $ | 262.1 | $ | 239.8 | $ | 221.1 | $ | 190.3 | $ | 111.9 | |||||||||
Ratio of earnings to fixed charges and preferred share dividends | 2.88 | 3.91 | 3.98 | 3.84 | 6.06 | ||||||||||||||
(1) | For purposes of calculating the ratio of earnings to fixed charges, interest expense, net includes interest expense related to outstanding indebtedness, including $3.7 million for the amortization of debt discount and issuance costs disclosed on the consolidated statement of cash flows. |
(2) | Interest within rental expense is estimated to be one-third of rental expense. |
(3) | Preferred share dividends represent the pre-tax dollars required to service the $32.9 million of preferred share dividends reflected on the consolidated income statement, including the deemed dividend for the accretion of preferred share issuance costs. See Note 6 and Note 7 of Item 8 for additional information. |
n/a | Not applicable as preferred shares issued in October 2016. |