EX-12 5 a2203633zex-12.htm EX-12

Exhibit 12

 

Ratio of Earnings to Fixed Charges:

 

Our ratio of earnings to fixed charges for each of the periods indicated (dollars in millions):

 

 

 

Fiscal Year

 

 

 

2010

 

2009

 

2008

 

2007

 

2006

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges

 

 

 

 

 

 

 

 

 

 

 

Interest expense (excluding loss on extinguishment)

 

$

276

 

$

257

 

$

302

 

$

378

 

$

105

 

Interest factor attributable to rental expense (1)

 

$

108

 

$

105

 

$

103

 

$

97

 

$

91

 

Total fixed charges

 

$

384

 

$

362

 

$

405

 

$

475

 

$

196

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings

 

 

 

 

 

 

 

 

 

 

 

Pre-tax income (loss) from continuing operations

 

$

149

 

$

157

 

$

(2

)

$

(17

)

$

115

 

Plus fixed charges

 

$

384

 

$

362

 

$

405

 

$

475

 

$

196

 

Total earnings

 

$

533

 

$

519

 

$

403

 

$

458

 

$

311

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges (2)

 

1.4

 

1.4

 

—

 

—

 

1.6

 

Deficiency

 

—

 

—

 

$

2

 

$

17

 

—

 

 

(1)                    Calculated as one-third of rent expense, which is a reasonable approximation of the interest factor.

 

(2)                    This ratio is computed by dividing the total earnings by the total fixed charges.  Earnings are defined as income (loss) before income taxes and discountinued operations, plus fixed charges.  Fixed charges are defined as total interest expense related and an estimate of the interest component within rent expense.