Exhibit 12
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In millions, except ratios)
Year Ended December 31, | |||||||||||||||
2012 | 2013 | 2014 | 2015 | 2016 | |||||||||||
Earnings: | |||||||||||||||
Income before provision for income taxes | $ | 88 | $ | 605 | $ | 850 | $ | 963 | $ | 909 | |||||
Add: | |||||||||||||||
Fixed charges, net of capitalized interest | 504 | 521 | 520 | 492 | 461 | ||||||||||
Total earnings available for fixed charges | 592 | 1,126 | 1,370 | 1,455 | 1,370 | ||||||||||
Fixed charges (1): | |||||||||||||||
Interest expense, net | 512 | 475 | 555 | 567 | 511 | ||||||||||
Add back interest income, which is netted in interest expense | 2 | 1 | 2 | 2 | 2 | ||||||||||
Add back refinance charges/losses on bond repurchases/retirement of subordinated convertible debentures, included in interest expense | (72 | ) | (3 | ) | (80 | ) | (123 | ) | (101 | ) | |||||
Interest expense—subordinated convertible debentures | 4 | 3 | — | — | — | ||||||||||
Capitalized interest | — | — | — | — | — | ||||||||||
Interest component of rent expense | 58 | 45 | 43 | 46 | 49 | ||||||||||
Fixed charges | $ | 504 | $ | 521 | $ | 520 | $ | 492 | $ | 461 | |||||
Ratio of earnings to fixed charges | 1.2x | 2.2x | 2.6x | 3.0x | 3.0x |
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(1) | Fixed charges consist of interest expense, which includes amortization of deferred finance charges, interest expense-subordinated debentures, capitalized interest and imputed interest on our lease obligations. The interest component of rent was determined based on an estimate of a reasonable interest factor at the inception of the leases. |