EX-12.1 2 ex121-ratioofearningstofix.htm EXHIBIT 12.1 RATIO OF EARNINGS TO FIXED CHARGES 123116 Wdesk | Exhibit


Exhibit 12.1
Computation of Ratio of Earnings to Fixed Charges
 
 
Year Ended December 31,
(Dollars in millions except ratios)
 
2016
 
2015
 
2014
 
2013
 
2012
Income (Loss) from continuing operations before income taxes (a)
 
$
(2,868
)
 
$
(2,099
)
 
$
(261
)
 
$
(207
)
 
$
(339
)
Fixed charges:
 
 
 
 
 
 
 
 
 
 
Interest expense (b)
 
506

 
474

 
507

 
524

 
492

Capitalized Interest
 
1

 
1

 
5

 
4

 
10

Interest factor portion of rentals (c)
 
86

 
114

 
132

 
131

 
111

Total fixed charges
 
593

 
589

 
644

 
659

 
613

Less: Capitalized Interest
 
(1
)
 
(1
)
 
(5
)
 
(4
)
 
(10
)
Earnings (loss) before income taxes and fixed charges
 
$
(2,276
)
 
$
(1,511
)
 
$
378

 
$
448

 
$
264

Ratio of earnings to fixed charges (d)
 

 

 

 

 

(a)
Income from continuing operations before income taxes has been adjusted to include only distributed income of less-than-fifty-percent-owned persons.
(b)
Interest expense consists of interest expense incurred from continuing operations and amortization of debt issuance costs.
(c)
Interest factor portion of rentals is estimated to be one-third of rental expense.
(d)
For the years ended December 31, 2016, 2015, 2014, 2013 and 2012, earnings, as defined, before fixed charges were inadequate to cover fixed charges by $2.9 billion, $2.1 billion, $266 million, $211 million and $349 million, respectively.