EX-12 4 uri-3312012xex12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES URI-3.31.2012-Ex 12


Exhibit 12
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In millions, except ratios)
 
 
Year Ended December 31, 
 
Three Months Ended March 31,
 
2007 
 

2008 
 

2009 
 

2010 

2011 
 

2012
Earnings:
 
 
 
 
 
 
Income (loss) from continuing operations before provision (benefit) for income taxes
$
578

$
(813
)
$
(107
)
$
(63
)
$
164

$
19

Add:
 
 
 
 
 
 
Fixed charges, net of capitalized interest
251
277
288
279
271

77

Total earnings available for fixed charges
829

(536
)
181

216

435

96

Fixed charges (1):
 
 
 
 
 
 
Interest expense, net
187
174
226
255
228

68

Add back interest income, which is netted in interest expense
6
6
1
1
1


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

41
20
(28
)
(5
)

Interest expense—subordinated convertible debentures, net
9
9
(4
)
8
7

1

Capitalized interest
2
1
1



Interest component of rent expense
49
47
45
43
40

8

Fixed charges
$
253

$
278

$
289

$
279

$
271

$
77

Ratio of earnings to fixed charges
3.3x

 —(2)(3)

       —  (2)

—  (2)

1.6x

1.2x

 
_________________
(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, 2009 and 2008, the ratio coverage was less than 1:1 for these years. We would have had to have generated additional earnings of $63, $108 and $814 for the years ended December 31, 2010, 2009 and 2008 respectively, to have achieved coverage ratios of 1:1.
(3)
The loss for the year ended December 31, 2008 includes the effect of an $1,147 pretax non-cash goodwill impairment charge. The effect of this charge was to reduce the ratio of earnings to fixed charges. Had this charge been excluded from the calculation, the ratio of earnings to fixed charges would have been 2.2x for the year ended December 31, 2008.