EX-12.1 4 dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

Exhibit 12.1

Exhibit 12.1 Ratio of Earnings to Fixed Charges

 

     Successor         Predecessor  
    

Year

Ended

December 31,

   

Nine Months

Ended

December 31,

       

Three Months

Ended

March 25,

   Years Ended December 31,  
(Dollars in millions)    2008     2007         2007    2006    2005    2004  

Earnings

                 

- Pre-tax (loss) income from continuing operations

   $ (59.5 )   $ (5.0 )     $ 16.6    $ 140.6    $ 49.5    $ (18.6 )

- Fixed charges

     209.9       160.4         17.9      99.7      96.3      102.8  
                                               

Net earnings

   $ 150.4     $ 155.4       $ 34.5    $ 240.3    $ 145.8    $ 84.2  
                                               
 

Fixed Charges

                 

- External interest expense

   $ 196.3     $ 151.0       $ —      $ —      $ —      $ —    

- Intercompany interest expense, net

     —         —           15.8      91.6      88.4      93.6  

- Amortized premiums, discounts and capitalized expenses related to indebtedness

     9.6       7.2         —        —        —        —    

- Estimate of interest expense within rental expense

     4.0       2.2         2.1      8.1      7.9      9.2  
                                               

Total fixed charges

   $ 209.9     $ 160.4       $ 17.9    $ 99.7    $ 96.3    $ 102.8  
                                               
 

Ratio of earnings to fixed charges

     0.72X       0.97X         NA      NA      NA      NA  

Deficiency

   $ 59.5     $ 5.0         NA      NA      NA      NA  

 

(1) For purposes of computing the ratio of earnings to fixed charges, earnings consist of income before income tax plus fixed charges. Fixed charges consist of interest expense and a portion of operating rental expense that management believes is representative of the interest component of rental expense. For periods in which the ratio of earnings is less than 1.0, the amounts shown as Deficiency represent the additional earnings that would be necessary to raise the ratio to 1.0. For the Predecessor periods, the ratio of earnings to fixed charges is not meaningful, given the fact that debt was not held by the Predecessor business.