EX-12 2 uri-2017123110kex12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Exhibit


Exhibit 12
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In millions, except ratios)
 
 
Year Ended December 31,
 
2013
2014
2015
2016
2017
Earnings:
 
 
 
 
 
Income before (benefit) provision for income taxes
$
605

$
850

$
963

$
909

$
1,048

Add:
 
 
 
 
 
Fixed charges, net of capitalized interest
521

520

492

461

465

Total earnings available for fixed charges
1,126

1,370

1,455

1,370

1,513

Fixed charges (1):
 
 
 
 
 
Interest expense, net
475

555

567

511

464

Add back interest income, which is netted in interest expense
1

2

2

2

2

Add back refinance charges/losses on bond repurchases/retirement of subordinated convertible debentures, included in interest expense
(3
)
(80
)
(123
)
(101
)
(54
)
Interest expense—subordinated convertible debentures
3

—

—

—

—

Capitalized interest
—

—

—

—

—

Interest component of rent expense
45

43

46

49

53

Fixed charges
$
521

$
520

$
492

$
461

$
465

Ratio of earnings to fixed charges
2.2x

2.6x

3.0x

3.0x

3.3x

 
_________________
(1)
Fixed charges consist of interest expense, which includes amortization of deferred finance charges, interest expense-subordinated debentures, capitalized interest and imputed interest on our lease obligations. The interest component of rent was determined based on an estimate of a reasonable interest factor at the inception of the leases.