EX-12.1 6 dex121.htm COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES Computation of Ratio of Earnings to Combined Fixed Charges

Exhibit 12.1

Computation of Ratio of Earnings to Combined Fixed Charges and Preference Dividends

(In thousands, except ratios)

 

    Six Months Ended
June 30,		     Years Ended
December 31,		  
    2010     2009     2009     2008     2007   2006   2005  

Earnings:

              

Pre-tax income (loss)

   $ 277,191      $ (1,647,096 )    $ (1,780,419 )    $ (533,005 )    $ 86,035   $ 189,098   $ (25,697 ) 

Adjustments:

              

Equity investment income

     (2,047 )      —          —          —          —       —       —     

Distributions from equity affiliate

     4,236        —          —          —          —       —       —     
                                                   

Pre-tax income (loss), as adjusted

   $ 279,380      $ (1,647,096 )    $ (1,780,419 )    $ (533,005 )    $ 86,035   $ 189,098   $ (25,697 ) 

Fixed charges

     127,953        115,615        237,812        156,713        133,474     89,086     25,795   
                                                   

Total earnings

   $ 407,333      $ (1,531,481 )    $ (1,542,607 )    $ (376,292 )    $ 219,509   $ 278,184   $ 98   
                                                   

Fixed charges:

              

Interest expense and amortization of finance costs

   $ 126,986      $ 114,814      $ 236,119      $ 155,361      $ 132,264   $ 88,414   $ 25,551   

Rental expense representative of interest factor

     967        801        1,693        1,352        1,210     672     244   
                                                   

Total fixed charges

   $ 127,953      $ 115,615      $ 237,812      $ 156,713      $ 133,474   $ 89,086   $ 25,795   
                                                   

Ratio of earnings to fixed charges

     3.2        —   (1)      —   (2)      —   (3)      1.6     3.1     —   (4) 
                                                   

Total fixed charges

   $ 127,953      $ 115,615      $ 237,812      $ 156,713      $ 133,474   $ 89,086   $ 25,795   

Pre-tax preferred dividend requirements

     —          —          —          —          —       352     680   
                                                   

Total fixed charges plus preference dividends

   $ 127,953      $ 115,615      $ 237,812      $ 156,713      $ 133,474   $ 89,438   $ 26,475   
                                                   

Ratio of earnings to combined fixed charges and preference dividends

     3.2        —   (1)      —   (2)      —   (3)      1.6     3.1     —   (5) 
                                                   

 

(1) Due to the Company’s loss for the six months ended June 30, 2009, the ratio coverage was less than 1:1. The Company must generate additional earnings of $1.6 billion to achieve a coverage ratio of 1:1.
(2) Due to the Company’s loss in 2009, the ratio coverage was less than 1:1. The Company must generate additional earnings of $1.8 billion to achieve a coverage ratio of 1:1.
(3) Due to the Company’s loss in 2008, the ratio coverage was less than 1:1. The Company must generate additional earnings of $533.0 million to achieve a coverage ratio of 1:1.
(4) Due to the Company’s loss in 2005, the ratio coverage was less than 1:1. The Company must generate additional earnings of $25.7 million to achieve a coverage ratio of 1:1.
(5) Due to the Company’s loss in 2005, the ratio coverage was less than 1:1. The Company must generate additional earnings of $26.4 million to achieve a coverage ratio of 1:1.