EX-12 2 exhibit12.htm EXHIBIT (12) RE COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES exhibit12.htm
 
 
 
Exhibit (12)
 
 
 
 
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
 

                                     
   
Year Ended
December 31,
    
Four Months Ended
December 31,
    
Eight Months Ended
August 31,
    
                     Years Ended December 31,
        
(in millions)
  
2014
    
2013
    
2013
    
2012
    
2011
    
2010
  
                                     
Loss from continuing operations before provision for income taxes
   $ (112 )   $ (74 )   $ 2,356     $ (1,610 )   $ (757 )   $ (425 )
Adjustments:
                                                
  Undistributed (earnings) loss of equity method investees
     -       -       -       -       -       -  
  Interest expense
     62       22       106       139       138       148  
  Interest component of rental expense (1)
     13       5       12       20       25       32  
  Amortization of capitalized interest
     -       -       -       2       2       2  
      Earnings available for fixed charges
   $ (37 )   $ (47 )   $ 2,474     $ (1,449 )   $ (592 )   $ (243 )
                                                 
Fixed charges:
                                                
  Interest expense
     62       22       106       139       138       148  
  Interest component of rental expense (1)
     13       5       12       20       25       32  
  Capitalized interest
     3       -       -       1       1       1  
      Total fixed charges
   $ 78     $ 27     $ 118     $ 160     $ 164     $ 181  
                                                 
Ratio of earnings to fixed charges
     *       * *       21.0       * * *       * * * *       * * * * *  
 

(1)  
Interest component of rental expense is estimated to equal 1/3 of such expense, which is considered a reasonable approximation of the interest factor.

*
Earnings for the year ended December 31, 2014 were inadequate to cover fixed charges.  The coverage deficiency was $115 million.

**
Earnings for the four months ended December 31, 2013 were inadequate to cover fixed charges.  The coverage deficiency was $74 million.

* * *
Earnings for the year ended December 31, 2012 were inadequate to cover fixed charges.  The coverage deficiency was $1,609 million.

* * * *
Earnings for the year ended December 31, 2011 were inadequate to cover fixed charges.  The coverage deficiency was $756 million.

* * * * *
Earnings for the year ended December 31, 2010 were inadequate to cover fixed charges.  The coverage deficiency was $424 million.
 
 

 
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