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EXHIBIT 12.1
SAFEWAY INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN MILLIONS)
(UNAUDITED)
<TABLE>
<CAPTION>
24 Weeks Fiscal Year
-------------------- -------------------------------------------------------
June 17, June 19,
2000 1999 1999 1998 1997 1996 1995
--------- --------- --------- --------- --------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Income before income taxes and
extraordinary loss .................... $ 893.6 $ 762.5 $1,674.0 $1,396.9 $1,076.3 $ 767.6 $ 556.5
Add interest expense ....................... 218.1 147.5 362.2 235.0 241.2 178.5 199.8
Add interest on rental expense (a) ......... 84.4 64.6 183.0 108.2 88.5 90.0 87.5
Less equity in earnings of
unconsolidated affiliates ............. (10.5) (13.2) (34.5) (28.5) (34.9) (50.0) (26.9)
Add minority interest in subsidiary ........ 1.1 1.7 5.9 5.1 4.4 3.4 3.9
--------- --------- --------- --------- --------- --------- --------
Earnings .............................. $1,186.7 $ 963.1 $2,190.6 $1,716.7 $1,375.5 $ 989.5 $ 820.8
========= ========= ========= ========= ========= ========= ========
Interest expense ........................... $ 218.1 $ 147.5 $ 362.2 $ 235.0 $ 241.2 $ 178.5 $ 199.8
Add capitalized interest ................... 4.5 3.5 9.3 8.5 5.7 4.4 4.6
Add interest on rental expense (a) ......... 84.4 64.6 183.0 108.2 88.5 90.0 87.5
--------- --------- --------- --------- --------- --------- --------
Fixed charges ......................... $ 307.0 $ 215.6 $ 554.5 $ 351.7 $ 335.4 $ 272.9 $ 291.9
========= ========= ========= ========= ========= ========= ========
Ratio of earnings to fixed charges .... 3.87 4.47 3.95 4.88 4.10 3.63 2.81
========= ========= ========= ========= ========= ========= ========
</TABLE>
(a) Based on a 10% discount factor on the estimated present value of future
operating lease payments.
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