EX-12.1 4 y89256exv12w1.htm EX-12.1 exv12w1
Exhibit 12.1
RATIO OF EARNINGS TO FIXED CHARGES
     The following table contains our consolidated ratio of earnings to fixed charges for the periods indicated. You should read these ratios in connection with our consolidated financial statements, including the Notes to those statements, incorporated by reference in this prospectus.
                     
    For the Year Ended December 31,
    2010   2009   2008   2007   2006
Ratio of earnings to fixed charges(1)
  3.9x   3.4x   3.7x   6.3x   8.9x
 
(1)   For the purposes of calculating the consolidated ratio of earnings to fixed charges, “earnings” are defined as income before income taxes, interest in earnings of associates and minority interest plus “fixed charges” and dividends from associates, less capitalized interest. Fixed charges comprise interest paid and payable, including the amortization of interest, and an estimate of the interest expense element of lease rentals.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
                                         
    Year ended  
    December 31,  
    2010     2009     2008     2007     2006  
            (millions except ratios)          
Income before income taxes, equity in net income of associates and noncontrolling interest
  $ 587     $ 522     $ 399     $ 554     $ 514  
Add back fixed charges:
                                       
Total fixed charges
    205       220       150       106       66  
Dividends from associates
    5       12       9       6       5  
Less:
                                       
Capitalized interest
    (1 )           (1 )     (2 )      
 
                             
Income as adjusted
  $ 796     $ 754     $ 557     $ 664     $ 585  
 
                             
Fixed charges
                                       
Interest expense
  $ 166     $ 174     $ 105     $ 66     $ 38  
Portions of rents representative of interest factor
    39       46       45       40       28  
 
                             
Total fixed charges
  $ 205     $ 220     $ 150     $ 106     $ 66  
 
                             
 
 
                             
Ratio of earnings to fixed charges
    3.9       3.4       3.7       6.3       8.9  
 
                             
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
                                         
    Year ended  
    December 31,  
    2010     2009     2008     2007     2006  
            (millions except ratios)          
Income before income taxes, equity in net income of associates and noncontrolling interest
  $ 587     $ 522     $ 399     $ 554     $ 514  
Add back fixed charges:
                                       
Total fixed charges
    205       220       150       106       66  
Dividends from associates
    5       12       9       6       5  
Less:
                                       
Capitalized interest
    (1 )           (1 )     (2 )      
 
                             
Income as adjusted
  $ 796     $ 754     $ 557     $ 664     $ 585  
 
                             
Fixed charges
                                       
Interest expense
  $ 166     $ 174     $ 105     $ 66     $ 38  
Portions of rents representative of interest factor
    39       46       45       40       28  
 
                             
Total fixed charges
  $ 205     $ 220     $ 150     $ 106     $ 66  
 
                             
Preferred stock dividends
                             
 
                             
Total fixed charges and preferred stock dividends
  $ 205     $ 220     $ 150     $ 106     $ 66  
 
                             
 
 
                             
Ratio of earnings to combined fixed charges and preferred stock dividends
    3.9       3.4       3.7       6.3       8.9  
 
                             
 
(1)   For the purposes of calculating the consolidated ratio of earnings to fixed charges, “earnings” are defined as income before income taxes, interest in earnings of associates and minority interest plus “fixed charges” and dividends from associates, less capitalized interest. Fixed charges comprise interest paid and payable, including the amortization of interest, and an estimate of the interest expense element of lease rentals.