EX-12.1 2 dex121.htm RATIO OF EARNINGS TO FIXED CHANGES Ratio of Earnings to Fixed Changes

Exhibit 12.1

Ratio of Earnings to Fixed Charges

 

     Year Ended December 31,  
     2006     2005     2004     2003     2002  
     (in millions)  

Income (loss) before income taxes

    $ 377     $ 428     $ 355     $ 39     $ (151 )

Equity in losses of equity-method investees

      —         —         —         —         4  
                                        

Net income (loss) before equity in losses of equity-method investees

      377       428       355       39       (146 )
                                        

Plus fixed charges:

           

Interest expense including amortization of debt issuance costs

      78       92       107       130       143  

Assumed interest element included in rent expense

      16       5       4       6       6  
                                        
     94       97       111       136       149  
                                        

Adjusted earnings

      471       525       466       175       3  

Fixed charges

      (94 )     (97 )     (111 )     (136 )     (149 )
                                        

Excess (deficiency) of earnings to cover fixed charges

    $ 377     $ 428     $ 355     $ 39     $ (146 )
                                        

Ratio of earnings to fixed charges (1)

      5.01       5.41       4.20       1.29       0.02  
(1) The ratio of earnings to fixed charges is computed by dividing (i) income (loss) before income taxes and losses from equity interests, plus fixed charges by (ii) fixed charges.