EX-12.1 4 a2215392zex-12_1.htm EX-12.1

Exhibit 12.1

 

RATIO OF EARNINGS TO FIXED CHARGES

 

Our ratios of earnings to fixed charges on a consolidated basis for the periods indicated were as follows:

 

 

 

Three Months
Ended
March 31,

 

Year Ended December 31,

 

 

 

2013

 

2012

 

2012

 

2011

 

2010

 

2009

 

2008

 

 

 

(Dollars in Millions)

 

 

 

(Unaudited)

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense and amortization of debt issuance costs (a)

 

$

65

 

$

69

 

$

261

 

$

281

 

$

393

 

$

407

 

$

468

 

Interest portion of rental expense

 

6

 

7

 

27

 

18

 

18

 

20

 

18

 

Total fixed charges

 

$

71

 

$

76

 

$

288

 

$

299

 

$

411

 

$

427

 

$

486

 

Earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

$

(394

)

$

123

 

$

(4,107

)

$

642

 

$

(1,063

)

$

(1,308

)

$

(2,031

)

Fixed charges, per above

 

71

 

76

 

288

 

299

 

411

 

427

 

486

 

Total earnings (deficit), adjusted

 

$

(323

)

$

199

 

$

(3,819

)

$

941

 

$

(652

)

$

(881

)

$

(1,545

)

Ratio of earnings to fixed charges (b)

 

—

 

2.62

 

—

 

3.15

 

—

 

—

 

—

 

 

 

a)               Interest expense included in fixed charges above reflects only interest on third party indebtedness and excludes any interest expense accrued on uncertain tax positions, as permitted by Financial Accounting Standards Board Accounting Standards CodificationTM Topic 740, Income Taxes.

 

b)              Earnings were deficient by $323 million for the three months ended March 31, 2013, $3.819 billion for the year ended December 31, 2012, $652 million for the year ended December 31, 2010, $881 million for the year ended December 31, 2009, and $1.545 billion for the year ended December 31, 2008.

 

The ratio of earnings to fixed charges for the three months ended March 31, 2013, is not necessarily indicative of the results that may be expected for the entire year. The data above include certain charges (credits) recorded in conjunction with goodwill and other intangible asset impairments, acquisitions, divestitures, restructuring and restructuring-related activities, and/or litigation. The ratios above should be read in conjunction with our consolidated financial statements, including the notes thereto, included in the 2012 Form 10-K and the Q1 2013 Form 10-Q, which are incorporated by reference herein.