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. |
E-47