EX-12 2 exhibit12q22011.htm COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES Exhibit 12 Q2 2011


Exhibit 12
Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends
 
 
Six Months Ended
 
For the Years Ended
 
June 30,
 
December 31,
 
2011
 
2010
 
2010
 
2009
 
2008
 
2007
 
2006
 
(in millions)
Earnings:
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations before income taxes
$
(1,150
)
 
$
(1,507
)
 
$
(3,299
)

$
(3,494
)
 
$
(4,060
)
 
$
(29,775
)
 
$
1,483

Equity in losses of unconsolidated investments
1,012

 
554

 
1,286

 
803

 
64

 
3

 
6

Fixed charges
998

 
1,064

 
2,081

 
2,047

 
2,094

 
2,213

 
2,242

Interest capitalized
(201
)
 
(7
)
 
(13
)
 
(12
)
 
(123
)
 
(127
)
 
(113
)
Amortization of interest capitalized
43

 
43

 
85

 
85

 
80

 
72

 
107

Earnings (loss), as adjusted
702

 
147

 
140

 
(571
)
 
(1,945
)
 
(27,614
)
 
3,725

Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, gross
488

 
753

 
1,464

 
1,450

 
1,362

 
1,433

 
1,533

Interest capitalized
201

 
7

 
13

 
12

 
123

 
127

 
113

Portion of rentals representative of interest
309

 
304

 
604

 
585

 
609

 
653

 
596

Fixed charges
998

 
1,064

 
2,081

 
2,047

 
2,094

 
2,213

 
2,242

Preferred stock dividends paid
—

 
—

 
—

 
—

 
—

 
—

 
3

Total fixed charges
998

 
1,064

 
2,081

 
2,047

 
2,094

 
2,213

 
2,242

Total fixed charges and preferred stock dividends
998

 
1,064

 
2,081

 
2,047

 
2,094

 
2,213

 
2,245

Ratio of combined earnings to fixed charges and preferred stock dividends
— (1)

 
— (2)

 
— (3)

 
— (4)

 
— (5)

 
— (6)

 
1.66


(1)
Earnings (loss), as adjusted were inadequate to cover fixed charges by $296 million at June 30, 2011.
(2)
Earnings (loss), as adjusted were inadequate to cover fixed charges by $917 million at June 30, 2010.
(3)
Earnings (loss), as adjusted were inadequate to cover fixed charges by $1.9 billion in 2010.
(4)
Earnings (loss), as adjusted were inadequate to cover fixed charges by $2.6 billion in 2009.
(5)
Earnings (loss), as adjusted were inadequate to cover fixed charges by $4.0 billion in 2008.
(6)
Earnings (loss), as adjusted were inadequate to cover fixed charges by $29.8 billion in 2007.