EX-12.1 4 a2223559zex-12_1.htm EX-12.1

Exhibit 12.1

 

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(In millions, except ratios)

 

 

 

Year Ended December 31,

 

 

 

2010

 

2011

 

2012

 

2013

 

2014

 

Earnings:

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before provision (benefit) for income taxes

 

$

(63

)

$

164

 

$

88

 

$

605

 

$

850

 

Add:

 

 

 

 

 

 

 

 

 

 

 

Fixed charges, net of capitalized interest

 

279

 

271

 

504

 

521

 

520

 

Total earnings available for fixed charges

 

216

 

435

 

592

 

1,126

 

1,370

 

Fixed charges (1):

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

255

 

228

 

512

 

475

 

555

 

Add back interest income, which is netted in interest expense

 

1

 

1

 

2

 

1

 

2

 

Add back refinance charges/gains (losses) on bond repurchases/retirement of subordinated convertible debentures, included in interest expense

 

(28

)

(5

)

(72

)

(3

)

(80

)

Interest expense—subordinated convertible debentures

 

8

 

7

 

4

 

3

 

—

 

Capitalized interest

 

—

 

—

 

—

 

—

 

—

 

Interest component of rent expense

 

43

 

40

 

58

 

45

 

43

 

Fixed charges

 

$

279

 

$

271

 

$

504

 

$

521

 

$

520

 

Ratio of earnings to fixed charges

 

—  

(2)

1.6x

 

1.2x

 

2.2x

 

2.6x

 

 

(1)         Fixed charges consist of interest expense, which includes amortization of deferred finance charges, interest expense-subordinated convertible debentures, capitalized interest and imputed interest on our lease obligations. The interest component of rent was determined based on an estimate of a reasonable interest factor at the inception of the leases.

(2)         The ratio coverage was less than 1:1 for the year ended December 31, 2010 due to our loss for the year. We would have had to have generated additional earnings of $63 for the year ended December 31, 2010 to have achieved a coverage ratio of 1:1.