EX-12 4 dex12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

Exhibit 12

 

 

     2001

    2002

    2003

    2004

   2005

    3/31/05

    3/31/06

Computation of Earnings:

                                                   

Income/(loss) from continuing operations before income taxes and cumulative effect of a change in accounting

   ($495 )   ($ 207 )   $ 53     $ 104    ($ 314 )   $ (19 )   $ 28

Adjustments to income:

                                                   

Add:              Distributed income from less than 50% owned companies

   2       5       9       11      9       1       1

Add:              Fixed charges as presented below

   469       355       398       380      379       99       71

Subtract:       Interest capitalized

   (1 )             (1 )     0      (1 )     0       0

Add:              Amortization of interest previously capitalized

   1               1       1              0       0
    

 


 


 

  


 


 

Earnings

   ($24 )   $ 153     $ 460     $ 496    $ 73     $ 81     $ 100
    

 


 


 

  


 


 

Computation of Fixed Charges:

                                                   

Interest incurred

   $455     $ 342     $ 356     $ 338    $ 344     $ 90     $ 65

Amortization of debt-related costs

   2       2       23       23      17       4       2

Portion of rental expense representative of interest (1)

   11       11       18       19      17       5       4

Interest capitalized

   1               1              1       0       0
    

 


 


 

  


 


 

Total fixed charges

   $469     $ 355     $ 398     $ 380    $ 379     $ 99     $ 71
    

 


 


 

  


 


 

Ratio of earnings to fixed charges (2)

   *       *       1.2       1.3      *       *       1.4

 


(1) One-third of net rent expense is the portion deemed representative of the interest factor.

 

(2) Earnings did not cover fixed charges by $493 in 2001, $202 in 2002, $306 in 2005 and $18 for the three months ended March 31, 2005.