EX-12.1 42 y37801exv12w1.htm EX-12.1 exv12w1
Exhibit 12.1
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
                                                 
                                            Nine Months  
    Year Ended December 31     Ended  
(in millions)   2008     2007     2006     2005     2004     Sept. 30, 2009  
Loss from continuing operations before provision for income taxes
  $ (874 )   $ (257 )   $ (582 )   $ (1,211 )   $ (628 )   $ (603 )
Adjustments:
                                               
Undistributed (earnings) loss of equity method investees
          (1 )     (7 )     (12 )     (30 )      
Interest expense
    108       143       262       211       168       75  
Interest component of rental expense (1)
    39       43       53       50       54       30  
Amortization of capitalized interest
    2       9       43       22       25       1  
 
                                   
Earnings as adjusted
  $ (725 )   $ (63 )   $ (231 )   $ (940 )   $ (411 )   $ (497 )
 
                                   
 
                                               
Fixed charges:
                                               
Interest expense
    108       143       262       211       168       75  
Interest component of rental expense (1)
    39       43       53       50       54       30  
Capitalized interest
    3       2       3       3       2       2  
 
                                   
Total fixed charges
  $ 150     $ 188     $ 318     $ 264     $ 224     $ 107  
 
                                   
 
                                               
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 $549 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.
 
******   Earnings for the nine months ended September 30, 2009 were inadequate to cover fixed charges. The coverage deficiency was $604 million.