EX-12 3 dex12.htm COMPUTATION OF EARNINGS TO FIXED CHARGES RATIO Computation of Earnings to Fixed Charges Ratio

EXHIBIT 12

COMPUTATION OF EARNINGS TO FIXED CHARGES RATIO

(in thousands of dollars, except ratio data)

 

     Year Ended
December 30,
2007
    Year Ended
December 31,
2006
 

Fixed Charge Computation

    

Interest Expense:

    

Net Interest Expense

   $ 197,997     $ 93,664  

Plus Capitalized Interest

     468       2,148  
                

Gross Interest

     198,465       95,812  

Amortization of Debt Discount

     2,352       1,174  

Interest Component of Rent Expense (a)

     5,679       5,287  
                

Total Fixed Charges

   $ 206,496     $ 102,273  
                

Earnings Computation

    

Income (Loss) from Continuing Operations Before Income Taxes

   $ (2,883,191 )   $ 270,885  

(Earnings) Losses of Equity Investments

     36,899       (4,951 )

Distributed Income of Equity Investees

     7,424       4,345  

Add: Fixed Charges

     206,496       102,273  

Less: Capitalized Interest

     (468 )     (2,148 )
                

Total Earnings as Adjusted

   $ (2,632,840 )   $ 370,404  
                

Ratio of Earnings to Fixed Charges (b)

     —         3.62  

 

(a) Based on a 10% discount factor on the estimated present value of future operating leases.
(b) Earnings were inadequate to cover fixed charges by $2.8 billion for the year ended December 30, 2007, as a result of non-cash impairment charges of $3.0 billion.

The Company had no registered debt securities prior to the Acquisition on June 27, 2006.