EX-12 9 exhibit12.htm EXHIBIT (12) exhibit12.htm

Exhibit (12)

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES


 
 
   
Year Ended December 31
 
(in millions)
 
2011
   
2010
   
2009
   
2008
   
2007
 
                               
Loss from continuing operations before provision for income taxes
  $ (758 )   $ (561 )   $ (117 )   $ (874 )   $ (257 )
Adjustments:
                                       
  Undistributed (earnings) loss of equity method
  investees
    -       -       -       -       (1 )
  Interest expense
    156       149       119       108       143  
  Interest component of rental expense (1)
    29       32       36       39       43  
  Amortization of capitalized interest
    2       2       2       2       9  
      Earnings as adjusted
  $ (571 )   $ (378 )   $ 40     $ (725 )   $ (63 )
                                         
Fixed charges:
                                       
  Interest expense
    156       149       119       108       143  
  Interest component of rental expense (1)
    29       32       36       39       43  
  Capitalized interest
    1       1       2       3       2  
      Total fixed charges
  $ 186     $ 182     $ 157     $ 150     $ 188  
                                         
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, 2011 were inadequate to cover fixed charges.  The coverage deficiency was $757 million.

**
Earnings for the year ended December 31, 2010 were inadequate to cover fixed charges.  The coverage deficiency was $560 million.

***
Earnings for the year ended December 31, 2009 were inadequate to cover fixed charges.  The coverage deficiency was $117 million.

****
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.