EX-12 4 d495783dex12.htm EX-12 EX-12

Exhibit (12)

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

     Year Ended December 31  
(in millions)    2012     2011     2010     2009     2008  

Loss from continuing operations before provision for income taxes

   $ (1,560   $ (699   $ (425   $ (5   $ (738

Adjustments:

          

Undistributed (earnings) loss of equity method investees

     —          —          —          —          —     

Interest expense

     158        155        148        118        107   

Interest component of rental expense (1)

     23        29        32        36        39   

Amortization of capitalized interest

     2        2        2        2        2   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings as adjusted

   $ (1,377   $ (513   $ (243   $ 151      $ (590
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Fixed charges:

          

Interest expense

     158        155        148        118        107   

Interest component of rental expense (1)

     23        29        32        36        39   

Capitalized interest

     1        1        1        2        3   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total fixed charges

   $ 182      $ 185      $ 181      $ 156      $ 149   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratio of earnings to fixed charges

             **        ***        ****        ***** 

 

(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, 2012 were inadequate to cover fixed charges. The coverage deficiency was $1559 million.
** Earnings for the year ended December 31, 2011 were inadequate to cover fixed charges. The coverage deficiency was $698 million.
*** Earnings for the year ended December 31, 2010 were inadequate to cover fixed charges. The coverage deficiency was $424 million.
**** Earnings for the year ended December 31, 2009 were inadequate to cover fixed charges. The coverage deficiency was $5 million.
***** Earnings for the year ended December 31, 2008 were inadequate to cover fixed charges. The coverage deficiency was $739 million.