EX-12.1 7 ex121-ratioearntofc123117.htm EXHIBIT 12.1 RATIO OF EARNINGS TO FIXED CHARGE 2017 Wdesk | Exhibit


Exhibit 12.1
Computation of Ratio of Earnings to Fixed Charges
 
 
Year Ended December 31,
(Dollars in millions except ratios)
 
2017
 
2016
 
2015
 
2014
 
2013
Income (Loss) from continuing operations before income taxes (a)
 
$
(2,653
)
 
$
(2,868
)
 
$
(2,099
)
 
$
(261
)
 
$
(207
)
Fixed charges:
 
 
 
 
 
 
 
 
 
 
Interest expense (b)
 
595

 
506

 
474

 
507

 
524

Capitalized Interest
 
1

 
1

 
1

 
5

 
4

Interest factor portion of rentals (c)
 
52

 
86

 
114

 
132

 
131

Total fixed charges
 
648

 
593

 
589

 
644

 
659

Less: Capitalized Interest
 
(1
)
 
(1
)
 
(1
)
 
(5
)
 
(4
)
Earnings (loss) before income taxes and fixed charges
 
$
(2,006
)
 
$
(2,276
)
 
$
(1,511
)
 
$
378

 
$
448

Ratio of earnings to fixed charges (d)
 

 

 

 

 

(a)
Income from continuing operations before income taxes has been adjusted to include only distributed income of less-than-fifty-percent-owned persons.
(b)
Interest expense consists of interest expense incurred from continuing operations and amortization of debt issuance costs.
(c)
Interest factor portion of rentals is estimated to be one-third of rental expense.
(d)
For the years ended December 31, 2017, 2016, 2015, 2014 and 2013, earnings, as defined, before fixed charges were inadequate to cover fixed charges by $2.7 billion, $2.9 billion, $2.1 billion, $266 million and $211 million, respectively.