EX-12 3 uri-6302015xex12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES URI-6.30.2015-Ex 12


Exhibit 12
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In millions, except ratios)
 
 
Year Ended December 31, 
 
 
Six Months Ended June 30,
 
2010
2011
2012
2013
2014
 
2015
Earnings:
 
 
 
 
 
 
 
(Loss) income from continuing operations before (benefit) provision for income taxes
$
(63
)
$
164

$
88

$
605

$
850

 
$
331

Add:
 
 
 
 
 
 
 
Fixed charges, net of capitalized interest
279

271

504

521

520

 
254

Total earnings available for fixed charges
216

435

592

1,126

1,370

 
585

Fixed charges (1):
 
 
 
 
 
 
 
Interest expense, net
255

228

512

475

555

 
353

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

1

2

1

2

 
1

Add back gains (losses) on bond repurchases/retirement of subordinated convertible debentures, included in interest expense
(28
)
(5
)
(72
)
(3
)
(80
)
 
(123
)
Interest expense—subordinated convertible debentures, net
8

7

4

3


 

Capitalized interest





 

Interest component of rent expense
43

40

58

45

43

 
23

Fixed charges
$
279

$
271

$
504

$
521

$
520

 
$
254

Ratio of earnings to fixed charges
—  (2)

1.6x

1.2x

2.2x

2.6x

 
2.3x

 
_________________
(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)
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.