EX-12 3 uri-9302014xex12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES URI-9.30.2014-Ex 12


Exhibit 12
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In millions, except ratios)
 
 
Year Ended December 31, 
 
 
Nine Months Ended September 30,
 
2009
2010
2011
2012
2013
 
2014
Earnings:
 
 
 
 
 
 
 
(Loss) income from continuing operations before (benefit) provision for income taxes
$
(107
)
$
(63
)
$
164

$
88

$
605

 
$
539

Add:
 
 
 
 
 
 
 
Fixed charges, net of capitalized interest
288

279

271

504

521

 
389

Total earnings available for fixed charges
181

216

435

592

1,126

 
928

Fixed charges (1):
 
 
 
 
 
 
 
Interest expense, net
226

255

228

512

475

 
436

Add back interest income, which is netted in interest expense
1

1

1

2

1

 
1

Add back gains (losses) on bond repurchases/retirement of subordinated convertible debentures, included in interest expense
20

(28
)
(5
)
(72
)
(3
)
 
(80
)
Interest expense—subordinated convertible debentures, net
(4
)
8

7

4

3

 

Capitalized interest
1





 

Interest component of rent expense
45

43

40

58

45

 
32

Fixed charges
$
289

$
279

$
271

$
504

$
521

 
$
389

Ratio of earnings to fixed charges
   —  (2)

—  (2)

1.6x

1.2x

2.2x

 
2.4x

 
_________________
(1)
Fixed charges consist of interest expense, which includes amortization of deferred finance charges, interest expense-subordinated 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)
Due to our losses for the years ended December 31, 2010 and 2009, the ratio coverage was less than 1:1 for these years. We would have had to have generated additional earnings of $63 and $108 for the years ended December 31, 2010 and 2009, respectively, to have achieved coverage ratios of 1:1.