EXHIBIT 12
Computation of Ratio of Earnings to Fixed Charges
Year ended December 31, | Pro forma year ended December 31, | Three months ended March 31, | Pro forma three months ended March 31, | ||||||||||||||||||||||||||||||||
1998 | 1999 | 2000 | 2001 | 2002 | 2002 | 2002 | 2003 | 2003 | |||||||||||||||||||||||||||
Income/(loss) before income taxes and cumulative effect of a change in accounting | $ | 180 | $ | 309 |
| $ | (217 | ) | $ | (444 | ) | $ | (145 | ) |
| $(222 | ) |
| $(30 | ) |
| $(8 | ) |
| $(27 | ) | |||||||||
Adjustments to income: | |||||||||||||||||||||||||||||||||||
Add: distributed income from less than 50% owned companies |
| 7 |
| 4 |
|
| 4 |
|
| 2 |
|
| 5 |
|
| 5 |
|
| 1 |
|
| 1 |
| ||||||||||||
Add: portion of rent expense representative of interest expense (1) |
| 6 |
| 10 |
|
| 12 |
|
| 11 |
|
| 11 |
|
| 11 |
|
| 2 |
|
| 3 |
|
| 3 |
| |||||||||
Add: interest incurred net of amounts capitalized |
| 408 |
| 367 |
|
| 393 |
|
| 455 |
|
| 342 |
|
| 419 |
|
| 93 |
|
| 79 |
|
| 98 |
| |||||||||
Add: amortization of interest previously capitalized |
| 1 |
| (1 | ) |
| (1 | ) |
| 1 |
| ||||||||||||||||||||||||
Add: amortization of debt issue costs |
| 2 |
| 6 |
|
| 3 |
|
| 2 |
|
| 2 |
|
| 2 |
| ||||||||||||||||||
Earnings |
| 604 |
| 695 |
|
| 194 |
|
| 27 |
|
| 215 |
|
| 215 |
|
| 65 |
|
| 75 |
|
| 75 |
| |||||||||
Interest incurred |
| 414 |
| 368 |
|
| 394 |
|
| 456 |
|
| 342 |
|
| 419 |
|
| 93 |
|
| 79 |
|
| 98 |
| |||||||||
Amortization of debt issue costs |
| 2 |
| 6 |
|
| 3 |
|
| 2 |
|
| 2 |
|
| 2 |
| ||||||||||||||||||
Portion of rent expense representative of interest expense (1) |
| 6 |
| 10 |
|
| 12 |
|
| 11 |
|
| 11 |
|
| 11 |
|
| 2 |
|
| 3 |
|
| 3 |
| |||||||||
Fixed charges |
| 422 |
| 384 |
|
| 409 |
|
| 469 |
|
| 355 |
|
| 432 |
|
| 95 |
|
| 82 |
|
| 101 |
| |||||||||
Preferred stock dividends |
| 29 |
| 23 |
|
| 3 |
| |||||||||||||||||||||||||||
Combined fixed charges and preferred stock dividends | $ | 451 | $ | 407 |
| $ | 412 |
| $ | 469 |
| $ | 355 |
| $ | 432 |
| $ | 95 |
| $ | 82 |
| $ | 101 |
| |||||||||
Ratio of earnings to fixed charges (2) |
| 1.4x |
| 1.8x |
| ||||||||||||||||||||||||||||||
Ratio of earnings to combined fixed charges and preferred stock dividends (2) |
| 1.3x |
| 1.7x |
| ||||||||||||||||||||||||||||||
(1) One-third of rent expense is the portion deemed representative of the interest factor. | |||||||||||||||||||||||||||||||||||
(2) Earnings did not cover fixed charges and preferred stock dividends by: | $ | 218 |
| $ | 442 |
| $ | 140 |
|
| $ 217 |
|
| $ 30 |
|
| $ 7 |
|
| $ 26 |
| ||||||||||||||