EX-12.1 71 dex121.htm STATEMENT REGARDING COMPUTATION OF EARNINGS TO FIXED CHARGES. Statement Regarding Computation of Earnings to Fixed Charges.

Exhibit 12.1

 

     Successor     Predecessor  
      For the two
months ended
December 31,
2006
   

For the ten

months ended
October 31,
2006

   For the twelve
months ended
December 31,
2005
    For the twelve
months ended
December 31,
2004
    For the twelve
months ended
December 31,
2003
    For the twelve
months ended
December 31,
2002
 

Earnings:

             
Income from continuing operations before income taxes and minority interest    $ (89 )   $ 9,165    $ (4,482 )   $ 439     $ 259     $ (2,329 )

Fixed charges (see below)

     39       277      775       35       49       52  

Amortization of capitalized interest

     —         5      7       8       8       9  

Capitalized interest

     (2 )     —        —         2       (1 )     —    
Minority interest in pre-tax income of subsidiaries that have not incurred fixed charges      —         —        —         —         —         —    
                                               

Earnings, as adjusted

   $ (52 )   $ 9,447    $ (3,700 )   $ 484     $ 315     $ (2,268 )
                                               

Fixed Charges:

             
Portion of rents representative of interest expense (33%)    $ 5     $ 22    $ 27     $ 27     $ 33     $ 35  
Interest on indebtedness, including amortization of deferred loan costs      32       255      748       10       15       17  

Capitalized interest

     2       —        —         (2 )     1       —    
                                               

Total fixed charges

   $ 39     $ 277    $ 775     $ 35     $ 49     $ 52  
                                               
Ratio of earnings to fixed charges      N/A       34.1      N/A       13.8       6.4       N/A  

Due to losses incurred for adjustments due to bankruptcy proceedings, we would have had to generate additional earnings of $91 million in the two months ended December 31, 2006, $4.475 billion in the twelve months ended December 31, 2005 and $2.320 billion in the twelve months ended December 31, 2002 in order to achieve a coverage of 1:1