EX-12 2 cxoexhibit121.htm EXHIBIT 12.1  

 

EXHIBIT 12.1

 

Ratio of Earnings to Fixed Charges and

Ratio of Earnings to Fixed Charges and Preferred Stock Dividends

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended December 31,

(in millions, except ratios)

 

2017

 

2016

 

2015

 

2014

 

2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes

  

$

881

 

$

(2,338)

 

$

97

 

$

856

 

$

357

 

Interest expense

 

 

146

 

 

204

 

 

215

 

 

217

 

 

219

 

Rental expense attributable to interest

  

 

3

 

 

3

 

 

3

 

 

2

 

 

2

 

 

Earnings

  

$

1,030

 

$

(2,131)

 

$

315

 

$

1,075

 

$

578

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

  

$

146

 

$

204

 

$

215

 

$

217

 

$

219

 

Capitalized interest

  

 

3

 

 

-

 

 

5

 

 

2

 

 

-

 

Rental expense attributable to interest

 

 

3

 

 

3

 

 

3

 

 

2

 

 

2

 

Preferred stock dividends

  

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

Fixed charges and preferred stock dividends

  

$

152

 

$

207

 

$

223

 

$

221

 

$

221

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges (a)

  

 

6.78

 

(b)

 

 

1.41

 

 

4.86

 

 

2.62

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges and preferred stock dividends (c)

  

 

6.78

 

(b)

 

 

1.41

 

 

4.86

 

 

2.62

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)   The ratio has been computed by dividing earnings by fixed charges. For purposes of computing the ratio:

 

•          earnings include income (loss) from continuing operations before income taxes, adjusted for interest expense and the portion of rental expense deemed to be representative of the interest component of rental expense; and

 

•          fixed charges consist of interest expense, capitalized interest and the portion of rental expense deemed to be representative of the interest component of rental expense.

 

(b)   Due to the Company’s loss from operations before income taxes for the year ended December 31, 2016, the ratio coverage was less than 1:1. To achieve ratio coverage of 1:1, the Company would have needed additional earnings of approximately $2.3 billion.

 

(c)    The ratio has been computed by dividing earnings by fixed charges and preferred stock dividends. For purposes of computing the ratio:

 

•          earnings include income (loss) from continuing operations before income taxes, adjusted for interest expense and the portion of rental expense deemed to be representative of the interest component of rental expense; and

 

•          fixed charges and preferred stock dividends consist of interest expense, capitalized interest, the portion of rental expense deemed to be representative of the interest component of rental expense and preferred stock dividends.

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