EX-7.1 47 exhibit71.htm EXHIBIT 7.1 Exhibit 7.1


Exhibit 7.1 - Computation of Ratio of Earnings to Fixed Charges

(In $ million)
 
2013
 
2012(1)
 
2011(1)
 
2010(1)
 
2009(1)
Earnings
 
 
 
 
 
 
 
 
 
 
Pre-tax income (loss) from continuing operations
 
36

 
(172
)
 
(581
)
 
(45
)
 
276

Distributed income of equity investees
 
27

 
7

 
8

 
4

 
1

Fixed charges
 
1,465

 
1,739

 
1,385

 
667

 
399

Less:
 
 
 
 
 
 
 
 
 
 
Share of profit of associates and joint ventures, net of income tax
 
(26
)
 
(27
)
 
(17
)
 
(18
)
 
(11
)
Non-controlling interests
 
(2
)
 
(1
)
 
(2
)
 
—

 
—

Interest capitalized
 
(6
)
 
(4
)
 
(4
)
 
(1
)
 
(3
)
Total Earnings
 
1,494

 
1,542

 
789

 
607

 
662

 
 
 
 
 
 
 
 
 
 
 
Fixed Charges
 
 
 
 
 
 
 
 
 
 
Interest expense and capitalized
 
1,326

 
1,429

 
1,197

 
520

 
317

Amortized premiums, discounts and capitalized expenses related to indebtedness
 
41

 
54

 
37

 
33

 
29

Fair value adjustment of acquired notes
 
(2
)
 
(2
)
 
(14
)
 
(1
)
 
—

Loss on extinguishment of debt
 
52

 
213

 
129

 
—

 
36

2010 debt commitment letter & related costs
 
—

 
—

 
—

 
98

 
—

Estimate of interest in rental expense
 
48

 
45

 
36

 
17

 
17

Total Fixed Charges
 
1,465

 
1,739

 
1,385

 
667

 
399

 
 
 
 
 
 
 
 
 
 
 
Ratio of Earnings to Fixed Charges
 
1.0x

 
—

 
—

 
—

 
1.7x

 
 
 
 
 
 
 
 
 
 
 
Additional Pre-tax Earnings to Achieve 1:1 Ratio
 
—

 
197

 
596

 
60

 
—


(1)
The information presented has been revised to reflect the adoption of revised IAS 19 "Employee Benefits". Refer to note 2.6 of the RGHL Group's audited consolidated financial statements included elsewhere in this annual report.