EX-12.1 2 a13-22383_1ex12d1.htm EX-12.1

EXHIBIT 12.1

 

STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(in millions)

 

 

 

Nine Months

 

 

 

 

 

 

 

 

 

 

 

 

 

Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

Year Ended December 31,

 

 

 

2013

 

2012

 

2011

 

2010

 

2009

 

2008

 

EARNINGS (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax income from continuing operations before noncontrolling interest and income from equity investees

 

$

1,107

 

$

1,135

 

$

1,019

 

$

499

 

$

559

 

$

422

 

add: Fixed charges

 

316

 

387

 

334

 

331

 

292

 

274

 

add: Distributed income of equity investees

 

35

 

40

 

23

 

9

 

7

 

10

 

add: Amortization of capitalized interest

 

3

 

2

 

2

 

1

 

1

 

1

 

less: Capitalized interest

 

(30

)

(36

)

(25

)

(16

)

(12

)

(17

)

Total Earnings

 

$

1,431

 

$

1,528

 

$

1,353

 

$

824

 

$

847

 

$

690

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FIXED CHARGES (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expensed and capitalized (2)

 

$

278

 

$

343

 

$

304

 

$

291

 

$

256

 

$

243

 

Amortization of debt expense

 

7

 

10

 

10

 

8

 

7

 

4

 

Portion of rent expense related to interest (33.33%)

 

31

 

34

 

20

 

32

 

29

 

27

 

Total Fixed Charges

 

$

316

 

$

387

 

$

334

 

$

331

 

$

292

 

$

274

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RATIO OF EARNINGS TO FIXED CHARGES (3)

 

4.52

x

3.95

x

4.05

x

2.49

x

2.90

x

2.52

x

 

(1)             For purposes of computing the ratio of earnings to fixed charges, “earnings” consists of pre-tax income from continuing operations before income from equity investees plus fixed charges (excluding capitalized interest), distributed income of equity investees and amortization of capitalized interest. “Fixed charges” represents interest incurred (whether expensed or capitalized), amortization of debt expense (including discounts and premiums relating to indebtedness) and the portion of rental expense on leases deemed to be the equivalent of interest.

 

(2)             Includes interest costs attributable to borrowings for hedged inventory purchases of $21 million for the nine months ended September 30, 2013 and $12 million, $20 million, $17 million, $11 million and $21 million for the years ended December 31, 2012, 2011, 2010, 2009 and 2008, respectively.

 

(3)             Ratios may not recalculate due to rounding.