Exhibit 12
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED DIVIDENDS (UNAUDITED)
Predecessor | Successor | |||||||||||||||||||||||||
Year Ended December 31, | Three Months Ended March 31, 2004 | Nine Months Ended December 31, 2004 | ||||||||||||||||||||||||
2000 | 2001 | 2002 | 2003 | |||||||||||||||||||||||
(in $ millions, except ratio of earnings to combined fixed charges) | ||||||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||||
Pre-tax earnings (loss) from continuing operations excluding minority interest expense | $ | 184 | $ | (424 | ) | $ | 180 | $ | 196 | $ | 72 | $ | (174 | ) | ||||||||||||
Less: | ||||||||||||||||||||||||||
Income from equity investees, net | (18 | ) | (12 | ) | (21 | ) | (35 | ) | (12 | ) | (36 | ) | ||||||||||||||
Plus: | ||||||||||||||||||||||||||
Income distributions from equity investments | 12 | 19 | 61 | 23 | 15 | 22 | ||||||||||||||||||||
Amortization of capitalized interest | 9 | 9 | 10 | 14 | 2 | 6 | ||||||||||||||||||||
Total fixed charges | 103 | 104 | 89 | 85 | 16 | 332 | ||||||||||||||||||||
Total "earnings" as defined before combined fixed charges | $ | 290 | $ | (304 | ) | $ | 319 | $ | 283 | $ | 93 | $ | 150 | |||||||||||||
Fixed charges: | ||||||||||||||||||||||||||
Interest expense | $ | 68 | $ | 72 | $ | 55 | $ | 49 | $ | 6 | $ | 300 | ||||||||||||||
Capitalized interest | 12 | 4 | 6 | 3 | 3 | 4 | ||||||||||||||||||||
Estimated interest portion of rent expense(1) | 23 | 28 | 28 | 33 | 7 | 21 | ||||||||||||||||||||
Preferred stock dividends | — | — | — | — | — | — | ||||||||||||||||||||
Guaranteed payment to minority shareholders | — | — | — | — | — | 7 | ||||||||||||||||||||
Total fixed charges | $ | 103 | $ | 104 | $ | 89 | $ | 85 | $ | 16 | $ | 332 | ||||||||||||||
Ratio of earnings to combined fixed charges(2) | 2.8 | x | — | 3.6 | x | 3.3 | x | 5.8 | x | — | ||||||||||||||||
(1) | The estimated interest portion of rental expense is based on the amount of rental expense including discontinued operations for 2000 and excluding discontinued operations for subsequent periods. |
(2) | Earnings were insufficient to cover combined fixed charges by $408 million for the year ended December 31, 2001 and $182 million for the nine months ended December 31, 2004. |