EXHIBIT 12.1
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
The ratio of earnings to fixed charges, as well as any deficiency of earnings are determined using the following applicable factors:
Earnings available for fixed chargesare calculated first, by determining the sum of: (a) income (loss) from continuing operations before income taxes and equity income; (b) distributed equity income; (c) fixed charges, as defined below;
Fixed chargesare calculated as the sum of: (a) interest costs; and (B) that portion of rental expense that is representative of the interest factor.
Year Ended December 31, | ||||||||||||||||||||
(in millions) | 2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||
Fixed charges: | ||||||||||||||||||||
Interest expense | $ | 2 | $ | 449 | $ | 985 | $ | 585 | $ | 566 | ||||||||||
Portion of rental expense which represents interest factor | 15 | 15 | 15 | 14 | 14 | |||||||||||||||
Total Fixed charges | $ | 17 | $ | 464 | $ | 1000 | $ | 599 | $ | 580 | ||||||||||
Earnings available for fixed charges: | ||||||||||||||||||||
Pre-tax income (loss) | $ | 1,358 | $ | 3,811 | $ | 1,044 | $ | (1,726 | ) | $ | (2,488 | ) | ||||||||
Add: Fixed charges | 17 | 464 | 1,000 | 599 | 580 | |||||||||||||||
Total Earnings available for fixed charges | $ | 1,375 | $ | 4,275 | $ | 2,044 | $ | (1,127 | ) | $ | (1,908 | ) | ||||||||
Ratio of earnings to fixed charges | 81 | 9 | 2 | * | ** |
* | Earnings for the year ended December 31, 2010 were inadequate to cover fixed charges by $1,726 |
** | Earnings for the year ended December 31, 2009 were inadequate to cover fixed charges by $2,488 |