EX-12 2 uri-2013123110kex12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES URI - 2013.12.31 10K EX 12


Exhibit 12
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In millions, except ratios)
 
 
Year Ended December 31, 
 
 
2009
2010
2011
2012
2013
Earnings:
 
 
 
 
 
Income (loss) from continuing operations before provision (benefit) for
income taxes
$
(107
)
$
(63
)
$
164

$
88

$
605

Add:
 
 
 
 
 
Fixed charges, net of capitalized interest
288

279

271

504

521

Total earnings available for fixed charges
181

216

435

592

1,126

Fixed charges (1):
 
 
 
 
 
Interest expense, net
226

255

228

512

475

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

1

1

2

1

Add back refinance charges/gains (losses) on bond repurchases/retirement of subordinated convertible debentures, included in interest expense
20

(28
)
(5
)
(72
)
(3
)
Interest expense—subordinated convertible debentures, net
(4
)
8

7

4

3

Capitalized interest
1





Interest component of rent expense
45

43

40

58

45

Fixed charges
$
289

$
279

$
271

$
504

$
521

Ratio of earnings to fixed charges
       —  (2)

—  (2)

1.6x

1.2x

2.2x

 
_________________
(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.
(2)
Due to our losses for the years ended December 31, 2010 and 2009, the ratio coverage was less than 1:1 for these years. We would have had to have generated additional earnings of $63 and $108 for the years ended December 31, 2010 and 2009, respectively, to have achieved coverage ratios of 1:1.