EX-12 17 exhibit12.htm EXHIBIT (12) exhibit12.htm

Exhibit (12)

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

   
Year Ended December 31
 
(in millions)
 
2008
   
2007
   
2006
   
2005
   
2004
 
                               
Loss from continuing operations before provision for income taxes
  $ (874 )   $ (256 )   $ (583 )   $ (1,208 )   $ (625 )
Adjustments:
                                       
  Minority interest in income of subsidiaries with fixed   
    charges
    -       (1 )     -       (3 )     (3 )
  Undistributed (earnings) loss of equity method
    investees
    -       (1 )     (7 )     (12 )     (30 )
  Interest expense
    108       113       172       139       111  
  Interest component of rental expense (1)
    39       43       53       50       54  
  Amortization of capitalized interest
    2       9       43       22       25  
      Earnings as adjusted
  $ (725 )   $ (93 )   $ (322 )   $ (1,012 )   $ (468 )
                                         
Fixed charges:
                                       
  Interest expense
    108       113       172       139       111  
  Interest component of rental expense (1)
    39       43       53       50       54  
  Capitalized interest
    3       2       3       3       2  
      Total fixed charges
  $ 150     $ 158     $ 228     $ 192     $ 167  
                                         
Ratio of earnings to fixed charges
    *       **       ***       ****       *****  
                                         



 (1)
Interest component of rental expense is estimated to equal 1/3 of such expense, which is considered a reasonable approximation of the interest factor.

 *
Earnings for the year ended December 31, 2008 were inadequate to cover fixed charges.  The   coverage deficiency was $875 million.

 **
Earnings for the year ended December 31, 2007 were inadequate to cover fixed charges.  The coverage deficiency was $251 million.

 ***
Earnings for the year ended December 31, 2006 were in adequate to cover fixed charges.  The coverage deficiency was $550 million.

 ****
Earnings for the year ended December 31, 2005 were inadequate to cover fixed charges.  The coverage deficiency was $1,204 million.

 *****
Earnings for the year ended December 31, 2004 were inadequate to cover fixed charges.  The coverage deficiency was $635 million.