EX-12.1 5 fy18q410kexhibit121.htm EXHIBIT 12.1
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.