EX-12.1 22 dex121.htm STATEMENTS REGARDING COMPUTATION OF RATIO OF EARNINGS Statements Regarding Computation of Ratio of Earnings

Exhibit 12.1

STATEMENT REGARDING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERENCE DIVIDENDS

The following illustrates the computation of the historical ratio of earnings to fixed charges (amounts in thousands except ratios). There were no preference securities outstanding for the following periods. Therefore, the ratio of earnings to combined fixed charges and preference dividends are identical to the ratios of earnings to fixed charges.

 

     Year Ended December 31,        

Fixed Charges:

   2004    2005     2006     2007     2008     Nine Months Ended
September 30, 2009
 

Interest on debt

   $ 42,880    $ 70,601      $ 97,075      $ 98,302      $ 85,319      $ 99,447   

Amortization of debt premium, discount and capitalized expenses

     5,830      (990     (3,143     (3,693     1,011        39,004   

Interest element of rentals*

     9,510      13,290        15,770        14,460        15,677        12,079   
                                               

Total Fixed Charges

   $ 58,220    $ 82,901      $ 109,702      $ 109,069      $ 102,007      $ 150,530   
                                               

Earnings:

             

Net income (loss)

   $ 184,327    $ 286,149      $ 274,651      $ (640,362   $ (976,373   $ (741,555

Add back:

             

Income tax provision (benefit)

     113,336      183,022        178,213        (14,447     (170,181     (207,337

Loss (income) on equity method investment

     —        (521     2,844        (1,633     (2,288     33,074   

Fixed charges

     58,220      82,901        109,702        109,069        102,007        150,530   
                                               

Total Earnings

   $ 355,883    $ 551,551      $ 565,410      $ (547,373   $ (1,046,835   $ (765,288
                                               

Ratio of Earnings to Fixed Charges

     6.1x      6.7x        5.2x        (5.0x     (10.3x     (5.1x
                                               

Additional net income required to achieve a l.0x ratio:

     n/a      n/a        n/a      $ 656,442      $ 1,148,842      $ 915,818   

 

* We determined the interest component of rent expense to be 10%.