EX-12 20 file017.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

Exhibit 12

COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED DIVIDENDS (UNAUDITED)


  Predecessor Successor
  Year Ended
December 31,
Three Months
Ended
March 31, 2004
Nine Months
Ended
December 31,
2004
  2000 2001 2002 2003
  (in $ millions, except ratio of earnings to combined fixed charges)
Earnings:            
Pre-tax earnings (loss) from continuing operations excluding minority interest expense $ 184   $ (424 $ 180   $ 196   $ 72   $ (174
Less:                                    
Income from equity investees, net   (18   (12   (21   (35   (12   (36
Plus:                                    
Income distributions from equity investments   12     19     61     23     15     22  
Amortization of capitalized interest   9     9     10     14     2     6  
Total fixed charges   103     104     89     85     16     332  
Total "earnings" as defined before combined fixed charges $ 290   $ (304 $ 319   $ 283   $ 93   $ 150  
Fixed charges:                                    
Interest expense $ 68   $ 72   $ 55   $ 49   $ 6   $ 300  
Capitalized interest   12     4     6     3     3     4  
Estimated interest portion of rent expense(1)   23     28     28     33     7     21  
Preferred stock dividends                        
Guaranteed payment to minority shareholders                       7  
Total fixed charges $ 103   $ 104   $ 89   $ 85   $ 16   $ 332  
Ratio of earnings to combined fixed charges(2)   2.8       3.6   3.3   5.8    
(1) The estimated interest portion of rental expense is based on the amount of rental expense including discontinued operations for 2000 and excluding discontinued operations for subsequent periods.
(2) Earnings were insufficient to cover combined fixed charges by $408 million for the year ended December 31, 2001 and $182 million for the nine months ended December 31, 2004.