EX-12 11 dex12.htm STATEMENT REGARDING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Statement Regarding Computation of Ratio of Earnings to Fixed Charges

Exhibit 12

RATIO OF EARNINGS TO FIXED CHARGES

The following table sets forth our ratio of earnings to fixed charges for the years period indicated:

 

     Successor     Predecessor  
     For the
Three
Months Ended
March 31,
2009		     For the
Twelve
Months Ended
December 31,
2008		     For the
Twelve
Months Ended
December 31,
2007		     For the
Two
Months Ended
December 31,
2006		     For the
Ten
Months Ended
December 31,
2006		    For the
Twelve
Months Ended
December 31,
2005		     For the
Twelve
Months Ended
December 31,
2004		  

Earnings:

                

Earnings (loss) from continuing operations before taxes

    $ (43 )   $ 118     $ 22     $ (105 )   $ 9,021    $ (4,513 )   $ 402  

Fixed charges (see below)

      34       163       177       39       277      775       35  

Amortization of capitalized interest

      1       2       1       —         5      7       8  

Capitalized interest

      (3 )     (9 )     (11 )     (2 )     —        —         2  

Noncontrolling interest in pre-tax income of subsidiaries that have not incurred fixed charges

      —         —         —         —         —        —         —    
                                                       

Earnings, as adjusted

    $ (11 )   $ 274     $ 189     $ (68 )   $ 9,303    $ (3,731 )   $ 447  
                                                       

Fixed Charges:

                

Portion of rents representative of interest expense (33%)

    $ 6     $ 31     $ 32     $ 5     $ 22    $ 27     $ 27  

Interest on indebtedness, including amortization of deferred loan costs

      25       123       134       32       255      748       10  

Capitalized interest

      3       9       11       2       —        —         (2 )
                                                       

Total fixed charges

    $ 34     $ 163     $ 177     $ 39     $ 277    $ 775     $ 35  
                                                       

Ratio of earnings to fixed charges

      N/A  (a)     1.7       1.1       N/A  (b)     33.6      N/A  (c)     12.8  

 

(a) We would have had to generate additional earnings of $45 million in the three months ended March 31, 2009 in order to achieve a coverage ratio of 1:1.
(b) Due to the losses incurred for adjustments due to bankruptcy proceedings, we would have had to generate additional earnings of $107 million in the two months ended December 31, 2006 in order to achieve a coverage ratio of 1:1.
(c) Due to the losses incurred for adjustments due to bankruptcy proceedings, we would have had to generate additional earnings of $4.506 billion in the twelve months ended December 31, 2005 in order to achieve a coverage ratio of 1:1.