Exhibit 12.1
RATIO OF EARNINGS TO FIXED CHARGES
Year Ended December 31 | ||||||||||||||||||||
($ in millions) | 2012 | 2011(2)(4) | 2010(4) | 2009(4) | 2008(1)(4) | |||||||||||||||
Earnings: | ||||||||||||||||||||
Earnings from continuing operations before income taxes | $ | 241 | $ | (4 | ) | $ | 199 | $ | 168 | $ | (2,372 | ) | ||||||||
Amortization of Capitalized Interest | 2 | 3 | 4 | 3 | 3 | |||||||||||||||
Interest Capitalized | (2 | ) | (2 | ) | (3 | ) | (8 | ) | (4 | ) | ||||||||||
Net adjustment for earnings from affiliates | 2 | — | — | — | — | |||||||||||||||
Fixed Charges: | ||||||||||||||||||||
Interest expensed and capitalized, including amortization of debt issuance | 119 | 106 | 43 | 44 | 44 | |||||||||||||||
Portion of rental expenses on operating leases deemed to be representative of the interest factor (3) | 15 | 15 | 15 | 16 | 14 | |||||||||||||||
Total Earnings | $ | 377 | $ | 118 | $ | 258 | $ | 223 | $ | (2,315 | ) | |||||||||
Fixed Charges: | $ | 134 | $ | 121 | $ | 58 | $ | 60 | $ | 58 | ||||||||||
Ratio of earnings to fixed charges | 2.8 | 1.0 | 4.4 | 3.7 | — |
(1) For the year ended December 31, 2008, the company’s earnings were insufficient to cover fixed charges by $2,373 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.
(4) Reflects immaterial error corrections discussed in Note 2: Summary of Significant Accounting Policies in Item 8 of our Annual Report on Form 10-K.