EX-7.1 107 exhibit712014.htm EXHIBIT 7.1 Exhibit 7.1 2014


Exhibit 7.1 - Computation of Ratio of Earnings to Fixed Charges

(In $ million)
 
2014(1)
 
2013(1)
 
2012(1)
 
2011(1)
 
2010(1)
Earnings
 
 
 
 
 
 
 
 
 
 
Pre-tax income (loss) from continuing operations
 
(475
)
 
(270
)
 
(424
)
 
(790
)
 
(223
)
Distributed income of equity investees
 
1

 
1

 
—

 
4

 
—

Fixed charges
 
1,358

 
1,465

 
1,739

 
1,385

 
667

Less:
 
 
 
 
 
 
 
 
 
 
Share of profit of associates and joint ventures, net of income tax
 
2

 
1

 
1

 
(2
)
 
(2
)
Non-controlling interests
 
(2
)
 
(2
)
 
(1
)
 
(2
)
 
—

Interest capitalized
 
(6
)
 
(6
)
 
(4
)
 
(4
)
 
(1
)
Total Earnings
 
878

 
1,189

 
1,311

 
591

 
441

 
 
 
 
 
 
 
 
 
 
 
Fixed Charges
 
 
 
 
 
 
 
 
 
 
Interest expense and capitalized
 
1,268

 
1,326

 
1,429

 
1,197

 
520

Amortized premiums, discounts and capitalized expenses related to indebtedness
 
44

 
41

 
54

 
37

 
33

Fair value adjustment of acquired notes
 
(2
)
 
(2
)
 
(2
)
 
(14
)
 
(1
)
Loss on extinguishment of debt
 
—

 
52

 
213

 
129

 
—

2010 debt commitment letter & related costs
 
—

 
—

 
—

 
—

 
98

Estimate of interest in rental expense
 
48

 
48

 
45

 
36

 
17

Total Fixed Charges
 
1,358

 
1,465

 
1,739

 
1,385

 
667

 
 
 
 
 
 
 
 
 
 
 
Ratio of Earnings to Fixed Charges
 
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
Additional Pre-tax Earnings to Achieve 1:1 Ratio
 
487

 
276

 
428

 
794

 
226


(1)
The information presented has been revised to reflect SIG as a discontinued operation for all periods. Refer to note 7 of the RGHL Group's audited consolidated financial statements included elsewhere in this annual report for additional information.