EX-12.1 2 d281994dex121.htm RATIO OF EARNINGS TO FIXED CHARGES Ratio of Earnings to Fixed Charges

EXHIBIT 12.1

RATIO OF EARNINGS TO FIXED CHARGES

 

($ in millions)

    Year Ended December 31  
     2011(2)     2010     2009     2008(1)     2007  

Earnings:

           

Earnings from continuing operations before income taxes

    $ 6      $ 206      $ 176        (2,394 )    $ 411   

Amortization of Capitalized Interest

      3        4        3        3        3   

Interest Capitalized

      (2 )      (3 )      (8 )      (4 )      (3 ) 

Fixed Charges:

           

Interest expensed and capitalized, including amortization of debt issuance

      106        43        44        44        45   

Portion of rental expenses on operating leases deemed to be representative of the interest factor (3)

      15        15        16        14        13   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Earnings

    $ 128      $ 265      $ 231      $ (2,337 )    $ 469   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed Charges:

    $ 121      $ 58      $ 60      $ 58      $ 58   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings to fixed charges

      1.1        4.6        3.9        —        8.1   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) For the year ended December 31, 2008, the company’s earnings were insufficient to cover fixed charges by $2,395 million.
(2) For the year ended December 31, 2011, the company recorded a non-cash goodwill impairment charge of $290 million.
(3) The proportion of rental expense deemed to be representative of the interest factor is one third.