Exhibit 12.1
Successor | Predecessor | ||||||||||||||
Six Months Ended June 30, | Period from February 1 to June 30, | Period from January 1 to January 31, | |||||||||||||
(In millions) | 2007 | 2006 | 2006 | ||||||||||||
Earnings (losses): | |||||||||||||||
Earnings (loss) before income taxes & adjustments for minority interest and equity earnings/(losses) in affiliates | $ | 229 | $ | (100 | ) | $ | 22,846 | ||||||||
Add (deduct): | |||||||||||||||
Fixed charges, from below | 469 | 494 | 63 | ||||||||||||
Distributed earnings of affiliates | — | 3 | — | ||||||||||||
Amortization of capitalized interest | — | — | 1 | ||||||||||||
Interest capitalized | (9 | ) | (7 | ) | — | ||||||||||
Minority interest | (1 | ) | — | — | |||||||||||
Earnings (loss) as adjusted | $ | 688 | $ | 390 | $ | 22,910 | |||||||||
Fixed charges: | |||||||||||||||
Interest expensed and capitalized and amortization | |||||||||||||||
of debt discounts and issuance costs (a) | $ | 345 | $ | 345 | $ | 41 | |||||||||
Portion of rental expense representative | |||||||||||||||
of the interest factor | 124 | 149 | 22 | ||||||||||||
Fixed charges, as above | 469 | 494 | 63 | ||||||||||||
Preferred stock dividend requirements (pre-tax) (b) | 10 | 4 | 1 | ||||||||||||
Fixed charges including preferred stock dividends | $ | 479 | $ | 498 | $ | 64 | |||||||||
Ratio of earnings to fixed charges | 1.47 | (c) | 363.65 | ||||||||||||
Ratio of earnings to fixed charges and preferred dividend requirements | 1.44 | (c) | 357.97 |
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(a) | Amortization of debt discounts includes amortization of fresh-start valuation discounts. |
(b) | Successor Company 2007 dividends were adjusted using an estimated 2007 effective tax rate of approximately 47%. |
(c) | Earnings were inadequate to cover both fixed charges and fixed charges and preferred dividend requirements by $104 million and $108 million, respectively, for the period from February 1 to June 30, 2006. |