EX-12 2 dex12.htm SUPPLEMENTAL CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES SUPPLEMENTAL CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES

Exhibit 12

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

(Amounts in Millions, Except Ratios)

 

     Years ended December 31,  
     2008    2007    2006     2005     2004  

Earnings (loss)(1)

             

Income (loss) from continuing operations before income taxes

    $ 471.5    $ 235.7    $ (5.0 )   $ (186.6 )   $ (267.0 )
                                      

Fixed charges(1)

             

Interest expense and other charges

      211.9      236.7      218.7       181.9       172.0  

Interest factor of net operating rents(2)

     183.9      185.6      185.1       183.9       190.0  
                                      

Total fixed charges

      395.8      422.3      403.8       365.8       362.0  
                                      

Earnings (loss), as adjusted

    $ 867.3    $ 658.0    $ 398.8     $ 179.2     $ 95.0  
                                      

Ratio of earnings to fixed charges(3)

      2.2      1.6      N/A       N/A       N/A  

 

(1)

Earnings (loss) consist of income (loss) from continuing operations before income taxes, income applicable to minority interests and equity in net income of unconsolidated affiliates. Fixed charges consist of interest on indebtedness, amortization of debt discount, waiver and other amendment fees, debt issuance costs (all included in interest expense) and the portion of net rental expense deemed representative of the interest component (one-third).

 

(2)

We have calculated the interest factor of net operating rent as one third of our operating rent, as this represents a reasonable approximation of the interest factor.

 

(3)

We had a less than 1:1 ratio of earnings to fixed charges due to our losses in the years ended December 31, 2006, 2005 and 2004. To provide a 1:1 coverage ratio for the deficient periods, results as reported would have required additional earnings of $5.0, $186.6 and $267.0 in the years ended December 31, 2006, 2005 and 2004, respectively.