EX-12 4 uri-2015123110kex12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Exhibit


Exhibit 12
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In millions, except ratios)
 
 
Year Ended December 31,
 
2011
2012
2013
2014
2015
Earnings:
 
 
 
 
 
Income before provision for income taxes
$
164

$
88

$
605

$
850

$
963

Add:
 
 
 
 
 
Fixed charges, net of capitalized interest
271

504

521

520

492

Total earnings available for fixed charges
435

592

1,126

1,370

1,455

Fixed charges (1):
 
 
 
 
 
Interest expense, net
228

512

475

555

567

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

2

1

2

2

Add back refinance charges/gains (losses) on bond repurchases/retirement of subordinated convertible debentures, included in interest expense
(5
)
(72
)
(3
)
(80
)
(123
)
Interest expense—subordinated convertible debentures
7

4

3

—

—

Capitalized interest
—

—

—

—

—

Interest component of rent expense
40

58

45

43

46

Fixed charges
$
271

$
504

$
521

$
520

$
492

Ratio of earnings to fixed charges
1.6x

1.2x

2.2x

2.6x

3.0x

 
_________________
(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.