EXHIBIT 12.1
RATIO OF EARNINGS TO FIXED CHARGES
($ in millions) | Year Ended December 31 | |||||||||||||||||||
2011(2) | 2010 | 2009 | 2008(1) | 2007 | ||||||||||||||||
Earnings: | ||||||||||||||||||||
Earnings from continuing operations before income taxes | $ | 6 | $ | 206 | $ | 176 | (2,394 | ) | $ | 411 | ||||||||||
Amortization of Capitalized Interest | 3 | 4 | 3 | 3 | 3 | |||||||||||||||
Interest Capitalized | (2 | ) | (3 | ) | (8 | ) | (4 | ) | (3 | ) | ||||||||||
Fixed Charges: | ||||||||||||||||||||
Interest expensed and capitalized, including amortization of debt issuance | 106 | 43 | 44 | 44 | 45 | |||||||||||||||
Portion of rental expenses on operating leases deemed to be representative of the interest factor(3) | 15 | 15 | 16 | 14 | 13 | |||||||||||||||
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Total Earnings | $ | 128 | $ | 265 | $ | 231 | $ | (2,337 | ) | $ | 469 | |||||||||
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Fixed Charges: | $ | 121 | $ | 58 | $ | 60 | $ | 58 | $ | 58 | ||||||||||
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Ratio of earnings to fixed charges | 1.1 | 4.6 | 3.9 | — | 8.1 | |||||||||||||||
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(1) | For the year ended December 31, 2008, the company’s earnings were insufficient to cover fixed charges by $2,395 million. |
(2) | For the year ended December 31, 2011, the company recorded a non-cash goodwill impairment charge of $290 million. |
(3) | The proportion of rental expense deemed to be representative of the interest factor is one third. |