Exhibit 12.1
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In millions, except ratios)
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| Year Ended December 31, |
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|
| 2010 |
| 2011 |
| 2012 |
| 2013 |
| 2014 |
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Earnings: |
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Income (loss) from continuing operations before provision (benefit) for income taxes |
| $ | (63 | ) | $ | 164 |
| $ | 88 |
| $ | 605 |
| $ | 850 |
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Add: |
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|
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Fixed charges, net of capitalized interest |
| 279 |
| 271 |
| 504 |
| 521 |
| 520 |
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Total earnings available for fixed charges |
| 216 |
| 435 |
| 592 |
| 1,126 |
| 1,370 |
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Fixed charges (1): |
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Interest expense, net |
| 255 |
| 228 |
| 512 |
| 475 |
| 555 |
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Add back interest income, which is netted in interest expense |
| 1 |
| 1 |
| 2 |
| 1 |
| 2 |
| |||||
Add back refinance charges/gains (losses) on bond repurchases/retirement of subordinated convertible debentures, included in interest expense |
| (28 | ) | (5 | ) | (72 | ) | (3 | ) | (80 | ) | |||||
Interest expense—subordinated convertible debentures |
| 8 |
| 7 |
| 4 |
| 3 |
| — |
| |||||
Capitalized interest |
| — |
| — |
| — |
| — |
| — |
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Interest component of rent expense |
| 43 |
| 40 |
| 58 |
| 45 |
| 43 |
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Fixed charges |
| $ | 279 |
| $ | 271 |
| $ | 504 |
| $ | 521 |
| $ | 520 |
|
Ratio of earnings to fixed charges |
| —(2 | ) | 1.6x |
| 1.2x |
| 2.2x |
| 2.6x |
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(1) Fixed charges consist of interest expense, which includes amortization of deferred finance charges, interest expense-subordinated convertible 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.
(2) The ratio coverage was less than 1:1 for the year ended December 31, 2010 due to our loss for the year. We would have had to have generated additional earnings of $63 for the year ended December 31, 2010 to have achieved a coverage ratio of 1:1.
