EX-12.1 4 wft123113ex121.htm RATIO OF EARNINGS TO FIXED CHARGES Wdesk | WFT 12.31.13 EX 12.1


Exhibit 12.1
Computation of Ratio of Earnings to Fixed Charges
 
 
Year Ended December 31,
(Dollars in millions except ratios)
 
2013
 
2012
 
2011
 
2010
 
2009
Income (Loss) from continuing operations before income taxes (a)
 
$
(207
)
 
$
(339
)
 
$
727

 
$
190

 
$
274

Fixed charges:
 
 
 
 
 
 
 
 
 
 
Interest expense (b)
 
524

 
492

 
462

 
416

 
384

Capitalized Interest
 
4

 
10

 
10

 
19

 
32

Interest factor portion of rentals (c)
 
131

 
111

 
81

 
65

 
63

Total fixed charges
 
659

 
613

 
553

 
500

 
479

Less: Capitalized Interest
 
(4
)
 
(10
)
 
(10
)
 
(19
)
 
(32
)
Earnings before income taxes and fixed charges
 
$
448

 
$
264

 
$
1,270

 
$
671

 
$
721

Ratio of earnings to fixed charges
 
0.68

 
0.43

 
2.30

 
1.34

 
1.51

Deficiency of earnings available to cover fixed charges (d)
 
$
(211
)
 
$
(349
)
 
$
—

 
$
—

 
$
—


(a)
Income from continuing operations before income taxes has been adjusted to include only distributed income of less-than-fifty-percent-owned persons.
(b)
Interest expense consists of interest expense incurred from continuing operations and amortization of debt issuance costs.
(c)
Interest factor portion of rentals is estimated to be one-third of rental expense.
(d)
For the years ended December 31, 2013 and 2012, earnings, as defined, before fixed charges were inadequate to cover fixed charges by $211 million and $349 million, respectively.