EX-12 8 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.

 

     2009    2008    2007     2006    2005
(in millions)                          

Income (loss) before income tax (expense) benefit(A)

   $ 288    $ 120    $     (147   $     296    $ 55

Dividends from non-consolidated affiliates

     59      85      111        83      83

Interest expense(B)

     235      456      493        418          300

Debt amortization expense

     16      13      9        13      8

Interest portion of rent expense(C)

     18      17      17        15      15
                                   

Total earnings

     616      691      483        825      461

Capitalized interest

     1      5      7        6      1

Interest expense(B)

     253      473      510        433      315

Debt amortization expense

     16      13      9        13      8
                                   

Total fixed charges

     270      491      526        452      324
                                   

Ratio of earnings to fixed charges

         2.28          1.41      —          1.83      1.42

Earnings shortfall

     —        —        (43     —        —  

 

(A) Excludes equity in income of non-consolidated affiliates and minority interest.
(B) Excludes interest expense on income tax contingencies.
(C) Represents an estimated amount of rental expense (33%) that is deemed to be representative of the interest factor.

 

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