EX-12.1 5 f57578exv12w1.htm EX-12.1 exv12w1
Exhibit 12.1
Computation of Ratio of Earnings to Fixed Charges
(In millions, except ratio data)
                                                 
            Company  
    Predecessor     Year Ended  
    One Month Ended     October 31,     October 31,     November 2,     November 1,     October 31,  
    November 30, 2005     2006     2007     2008     2009     2010  
Fixed charges (1)
                                               
Interest expense
  $     $ 121     $ 105     $ 82     $ 73     $ 32  
Amortization of debt issuance costs and
          22       4       4       4       2  
Portion of rental expense representative of interest (2)
    1       4       3       4       4       4  
 
                                   
Total fixed charges
  $ 1     $ 147     $ 112     $ 90     $ 81     $ 38  
 
                                               
Earnings
                                               
Income (loss) from continuing operations before income taxes
  $ (23 )   $ (225 )   $ (212 )   $ 60     $ (36 )   $ 406  
Fixed charges per above
    1       147       112       90       81       38  
 
                                   
Total earnings
  $ (22 )   $ (78 )   $ (100 )   $ 150     $ 45     $ 444  
 
                                               
Deficiency of earnings to fixed charges
  $ (23 )   $ (225 )   $ (212 )   $     $ (36 )   $  
 
                                               
Ratio of earnings to fixed charges (3)
                      1.7             11.7  
 
(1)   For purposes of computing this ratio of earnings to fixed charges, “fixed charges” consist of interest expense on all indebtednes plus amortization of debt issuance costs and an estimate of interest expense within rental expense. “Earnings” consist of pre-tax income (loss) from continuing operations plus fixed charges.
 
(2)   The Company uses one-third of rental expense as an estimation of the interest factor on its rental expense.
 
(3)   Earnings were insufficient to cover fixed charges by $23 million, $225 million, $212 million, and $36 million, for the one month ended November 30, 2005, the years ended October 31, 2006, October 31, 2007, and November 1, 2009, respectively.