EXHIBIT 12 — COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Years ended December 31, | ||||||||||||||||||||||||||||||||
Post-merger | Pre-merger | Pre-merger | Pre-merger | Pre-merger | Pre-merger | Pre-merger | Pre-merger | |||||||||||||||||||||||||
(In thousands, except ratio) | 2008(1) | 2008(2) | 2007(3) | 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||||||||
Income from continuing operations before income taxes, equity in earnings of non-consolidated affiliates and cumulative effect of a change in accounting principle | $ | (79,025 | ) | $ | 474,657 | $ | 840,969 | $ | 1,198,646 | $ | 1,071,437 | $ | 961,860 | $ | 1,200,551 | $ | 1,725,685 | |||||||||||||||
Dividends and other received from nonconsolidated affiliates | 5,782 | 21,876 | 20,352 | 6,793 | 15,179 | 14,696 | 13,491 | 2,096 | ||||||||||||||||||||||||
Total | (73,243 | ) | 496,533 | 861,321 | 1,205,439 | 1,086,616 | 976,556 | 1,214,042 | 1,727,781 | |||||||||||||||||||||||
Fixed Charges | ||||||||||||||||||||||||||||||||
Interest expense(4) | 281,479 | 213,210 | 347,525 | 451,870 | 484,063 | 443,442 | 367,511 | 392,215 | ||||||||||||||||||||||||
Interest portion of rentals | 90,189 | 264,387 | 288,909 | 418,587 | 374,875 | 342,462 | 321,342 | 282,575 | ||||||||||||||||||||||||
Total fixed charges | 371,668 | 477,597 | 636,434 | 870,457 | 858,938 | 785,904 | 688,853 | 674,790 | ||||||||||||||||||||||||
Preferred stock dividends | ||||||||||||||||||||||||||||||||
Tax effect of preferred dividends | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
After tax preferred dividends | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Total fixed charges and preferred dividends | 371,668 | 477,597 | 636,434 | 870,457 | 858,938 | 785,904 | 688,853 | 674,790 | ||||||||||||||||||||||||
Total earnings available for payment of fixed charges | $ | 298,425 | $ | 974,130 | $ | 1,497,755 | $ | 2,075,896 | $ | 1,945,554 | $ | 1,762,460 | $ | 1,902,895 | $ | 2,402,571 | ||||||||||||||||
Ratio of earnings to fixed charges(5) | N/A | 2.04 | 2.35 | 2.38 | 2.27 | 2.24 | 2.76 | 3.56 | ||||||||||||||||||||||||
Rental fees and charges | 257,684 | 755,391 | 825,454 | 1,195,962 | 1,071,072 | 978,463 | 918,120 | 807,356 | ||||||||||||||||||||||||
Interest portion | 35 | % | 35 | % | 35 | % | 35 | % | 35 | % | 35 | % | 35 | % | 35 | % |
(1) | For the period from July 31 through September 30, 2008. | |
(2) | For the period from January 1 through July 30, 2008. | |
(3) | For the nine months ended September 30, 2007. | |
(4) | The interest amount does not include interest expense associated with unrecognized tax benefits. | |
(5) | Earnings, as adjusted, were not sufficient to cover fixed charges by approximately $73.2 million for the post merger period from July 31 through September 30, 2008. |