EX-12.1 5 dex121.htm RATIO OF EARNINGS TO FIXED CHARGES Ratio of Earnings to Fixed Charges

Exhibit 12.1

RATIO OF EARNINGS TO FIXED CHARGES

(unaudited)

(dollars in millions)

 

         December 31,  
         2008     2007     2006     2005     2004  

Income before income taxes and non-controlling interests

    $ 1,019     $ 1,823     $ 528     $ 376     $ 200  

Less: Non-controlling interests

      (155 )     364       16       3       5  
                                          

Pre-tax income, net of non-controlling interests

      1,174       1,459       512       373       195  

Add:

  

Fixed charges

      99       77       22       15       6  
 

Distributions from earnings from equity method investees

      28       23       2       3       2  

Less:

  

Loss (earnings) from equity method investees

      294       (84 )     (6 )     (12 )     (3 )
                                          

Pre-tax income before fixed charges

    $ 1,595     $ 1,475     $ 530     $ 379     $ 200  
                                          

Fixed charges:

           
 

Interest expense

    $ 66     $ 49     $ 10     $ 8     $ 1  
 

Interest expense on uncertain tax positions1

      5       2       —         —         —    
 

Portion of rent representative of interest

      28       26       12       7       5  
                                          

Total fixed charges

    $ 99     $ 77     $ 22     $ 15     $ 6  
                                          

Ratio of earnings to fixed charges

      16.1 x     19.2 x     24.1 x     25.3 x     33.3 x
                                          

 

1

Interest expense on uncertain tax positions, in accordance with FIN No. 48, has been recorded within income tax expense on the consolidated statements of income.