EX-12 13 dex12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

EXHIBIT 12

Computation of Ratio of Earnings to Fixed Charges

The computation of Ratio of Earnings to Fixed Charges as shown on this Exhibit 12 is provided pursuant to Items 503(d) and 601(12) of Regulation S-K. The Ratio of Earnings to Fixed Charges is not calculated consistently with the fixed charge coverage ratios that may be required under certain covenants of the Company’s debt agreements. As of October 31, 2008, the Company was in compliance with its loan covenants. See Note 10, Debt, to the accompanying consolidated financial statements.

 

     2008    2007     2006    2005    2004  
(in millions)                            

Income (loss) before income tax (expense) benefit

   $ 191    $ (73 )   $ 395    $ 145    $ (35 )

Interest expense(A)

     456      493       418      300      219  

Debt amortization expense

     13      9       13      8      18  

Interest portion of rent expense (33%)

     17      17       15      15      13  
                                     

Total earnings

     677      446       841      468      215  

Capitalized interest

     5      7       6      1      1  

Interest expense(A)

     473      510       433      315      232  

Debt amortization expense

     13      9       13      8      18  
                                     

Total fixed charges

     491      526       452      324      251  
                                     

Ratio of earnings to fixed charges

     1.38      0.85       1.86      1.45      0.86  

Earnings shortfall

     —        (80 )     —        —        (36 )

 

(A) Excludes interest expense on income tax contingencies.

 

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