EX-12 5 d693724dex12.htm EX-12 EX-12

Exhibit (12)

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

     Four Months
Ended
December 31
    Eight Months
Ended August 31
    Year Ended December 31  
(in millions)    2013     2013     2012     2011     2010     2009  

Loss from continuing operations before provision for income taxes

   $ (78   $ 2,356      $ (1,610   $ (757   $ (425   $ (5

Adjustments:

            

Undistributed (earnings) loss of equity method investees

     —          —          —          —          —          —     

Interest expense

     22        106        139        138        148        118   

Interest component of rental expense (1)

     5        12        20        25        32        36   

Amortization of capitalized interest

     —          —          2        2        2        2   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings as adjusted

   $ (51   $ 2,474      $ (1,449   $ (592   $ (243   $ 151   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Fixed charges:

            

Interest expense

     22        106        139        138        148        118   

Interest component of rental expense (1)

     5        12        20        25        32        36   

Capitalized interest

     —          —          1        1        1        2   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total fixed charges

   $ 27      $ 118      $ 160      $ 164      $ 181      $ 156   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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 four months ended December 31, 2013 were inadequate to cover fixed charges. The coverage deficiency was $66 million.
** Earnings for the eight months ended August 31, 2013 were adequate to cover fixed charges. The coverage amount was $2,356 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.
****** Earnings for the year ended December 31, 2009 were inadequate to cover fixed charges. The coverage deficiency was $5 million.