EX-12 7 d920461dex12.htm EXHIBIT 12 Exhibit 12

Exhibit 12

 

     Year ended December 31      Quarter
ended
March 28,
 

Dollars in millions

   2010      2011      2012     2013      2014      2015  

Earnings:

                

Income (loss) from continuing operations before income taxes, noncontrolling interest and equity income of unconsolidated subsidiaries

   $ 279       $ 41       $ (148   $ 693       $ 783       $ 153   

Fixed charges

     48         73         85       101         99         26   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total earnings available for fixed charges

$ 327    $ 114    $ (63 $ 794    $ 882    $ 179   

Fixed Charges:

Interest expense, including amortization of debt issuance costs

  37      60      70      75      72      20   

Assumed interest element included in rental expense

  11      13      15      26      27      6   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total fixed charges

$ 48    $ 73    $ 85   $ 101    $ 99    $ 26   

Ratio of earnings to fixed charges

  6.8      1.6      —   (1)    7.9      8.9      6.9   

For purposes of calculating the ratios of earnings to fixed charges, earnings consist of income (loss) before income taxes and noncontrolling interests plus equity income of unconsolidated subsidiaries, plus fixed charges. Fixed charges consist of interest expensed and an estimate of interest within rental expense.

 

(1) Earnings for the year ended December 31, 2012 were inadequate to cover fixed charges. Additional earnings of $148 million would have been needed to bring the ratio of earnings to fixed charges to 1.0.