EX-12.1 3 dex121.htm STATEMENT REGARDING COMPUTATION OF RATIO OF EARNINGS Statement regarding computation of ratio of earnings

Exhibit 12.1

STATEMENT REGARDING COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES

AND PREFERENCE DIVIDENDS

The following illustrates the computation of the historical ratio of earnings to fixed charges (amounts in thousands except ratios). There were no preference securities outstanding for the following periods. Therefore, the ratios of earnings to combined fixed charges and preference dividends are identical to the ratios of earnings to fixed charges.

 

     Historical     Historical  
     Year Ended December 31,     Three Months Ended
March 31, 2009
 
     2004    2005     2006     2007     2008    

Fixed Charges:

             

Interest on debt

   $ 41,971    $ 67,509     $ 93,983     $ 95,210     $ 82,227     $ 28,689  

Amortization of debt premium, discount and capitalized expenses

     6,699      (990 )     (3,143 )     (3,693 )     1,011       9,022  

Interest element of rentals *

     9,506      13,290       15,770       14,460       15,677       3,790  
                                               

Total Fixed Charges

   $ 58,176    $ 79,809     $ 106,610     $ 105,977     $ 98,915     $ 41,501  
                                               

Earnings:

             

Net income (loss)

   $ 184,327    $ 288,130     $ 276,632     $ (638,381 )   $ (974,392 )   $ (273,782 )

Add back:

             

Income tax provision (benefit)

     113,336      184,133       179,324       (13,336 )     (169,070 )     (141,385 )

Loss (income) on equity method investment

     —        (521 )     2,844       (1,633 )     (2,243 )     87  

Fixed charges

     58,176      79,809       106,610       105,977       98,915       41,501  
                                               

Total Earnings

   $ 355,839    $ 551,551     $ 565,410     $ (547,373 )   $ (1,046,790 )   $ (373,579 )
                                               

Ratio of Earnings to Fixed Charges

     6.1x      6.9x       5.3x       (5.2x )     (10.6x )     (9.0x )
                                               

Additional total earnings required to achieve a 1.0x ratio:

     n/a      n/a       n/a     $ 653,350     $ 1,145,705     $ 415,080  

 

* We determined the interest component of rent expense to be 10%.