EX-12.1 3 a09-14542_1ex12d1.htm EX-12.1

Exhibit 12.1

 

COMPUTATION IN SUPPORT OF CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES

 

 

 

Three Months
Ended
March 31,

 

Years Ended December 31,

 

 

 

2009

 

2008

 

2007

 

2006

 

2005

 

2004

 

 

 

 

 

(dollars in millions)

 

Earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax income (loss) before discontinued operations and accounting change

 

$

148

 

$

(371

)

$

1,016

 

$

797

 

$

745

 

$

1,112

 

Interest and debt expense

 

30

 

114

 

133

 

136

 

87

 

64

 

Interest component of rental expense

 

9

 

28

 

31

 

29

 

26

 

26

 

Amortization of capitalized interest

 

—

 

3

 

1

 

—

 

1

 

1

 

Undistributed (income) loss from equity investees

 

6

 

28

 

1

 

(1

)

—

 

(1

)

Minority interest in pretax losses

 

(14

)

(54

)

(8

)

—

 

—

 

—

 

Minority interest in pretax income of subsidiaries that have incurred fixed charges

 

—

 

—

 

—

 

50

 

—

 

—

 

Earnings (loss) (a)

 

$

179

 

$

(252

)

$

1,174

 

$

1,011

 

$

859

 

$

1,202

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense

 

$

30

 

$

114

 

$

133

 

$

136

 

$

87

 

$

64

 

Interest component of rental expense

 

9

 

28

 

31

 

29

 

26

 

26

 

Capitalized interest

 

1

 

8

 

5

 

—

 

—

 

—

 

Fixed charges (b)

 

$

40

 

$

150

 

$

169

 

$

165

 

$

113

 

$

90

 

Ratio of earnings to fixed charges (a/b)

 

4.5

 

NM

(1)

6.9

 

6.1

 

7.6

 

13.4

 

 

NM:                      Not Meaningful

(1)                                Earnings were insufficient to cover fixed charges for the year ended December 31, 2008 by $402 million primarily due to negative market impacts on results of operations, including $762 million in pre-tax impairments on available-for-sale securities.