EX-12.1 8 dex121.txt COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES EXHIBIT 12.1 COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES (Unaudited) Quarters Ended March 31, ------------------------------------- 2002 2001 ------------------------------------------------------------------------------- (millions) Earnings Income (Loss) from continuing operations before income taxes $ 237 $ (77) Capitalized Interest (32) (44) Net losses in equity method investees 20 59 ------------------------------------------------------------------------------- Subtotal 225 (62) ------------------------------------------------------------------------------- Fixed charges Interest charges 352 351 Interest factor of operating rents 100 88 ------------------------------------------------------------------------------- Total fixed charges 452 439 ------------------------------------------------------------------------------- Earnings, as adjusted $ 677 $ 377 ===================================== Ratio of earnings to fixed charges 1.50 -(1) ===================================== (1) Earnings, as adjusted, were inadequate to cover fixed charges by $62 million in the first quarter of 2001. Earnings, as adjusted, include a one-time gain from investment activities of $14 million. Excluding this one-time gain, earnings, as adjusted, would have been inadequate to cover fixed charges by $76 million. Note: The ratios of earnings to fixed charges were computed by dividing fixed charges into the sum of earnings (after certain adjustments) and fixed charges. Earnings include income (loss) from continuing operations before taxes, plus net losses in equity method investees, less capitalized interest. Fixed charges include interest on all debt of continuing operations, including amortization of debt issuance costs, and the interest component of operating rents.