EX-12.1 4 d548040dex121.htm EX-12.1 EX-12.1

Exhibit 12.1

Computation of Ratio of Earnings to Fixed Charges

 

     Quarter
Ended
March 31,
    Year Ended December 31,  
     2013     2012      2011      2010     2009     2008  
(in millions)                                       

Earnings:

              

Pre-tax earnings (loss) from continuing operations

   $ (11   $ 166       $ 115       $ (570   $ (226   $ (919

Add: Fixed Charges

     17        73         71         199        80        89   
  

 

 

   

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Earnings available for fixed charges

   $ 6      $ 239       $ 186       $ (371   $ (146   $ (830
  

 

 

   

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Fixed Charges:

              

Interest expense

   $ 16      $ 64       $ 63       $ 191      $ 70      $ 78   

Estimated interest component of rent expense

     1        9         8         8        10        11   
  

 

 

   

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Fixed Charges

   $ 17      $ 73       $ 71       $ 199      $ 80      $ 89   
  

 

 

   

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Ratio of Earnings to Fixed Charges (a)

     0.4x        3.3x         2.6x         (b     (b     (b

 

(a) The ratio of earnings to fixed charges has been computed by dividing earnings available for fixed charges by fixed charges. Computations in the ratio included:

 

   

pre-tax earnings (loss) from continuing operations consists of earning (loss) from continuing operations before income taxes less net earnings attributable to non-controlling interests and equity income.

 

   

fixed charges consists of interest expense (including amortization of debt issuance costs) and one-third of operating rent expense, which we believe is representative of the interest component of rent expense.

 

(b) Earnings for the years ended December 31, 2010, 2009, and 2008 were insufficient to cover fixed charges by $570 million, $226 million and $919 million, respectively. As a result of such deficiencies, the ratios are not presented above.