Exhibit 12.1
RATIO OF EARNINGS TO FIXED CHARGES
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended | | Year Ended December 31 |
| ($ in millions) | | 2017 | | 2016 | | 2015(1) | | 2014(2) | | 2013 | | 2012 |
| Earnings: | | | | | | | | | | | | |
| Earnings from continuing operations before income taxes | | $ | 365 |
| | $ | 784 |
| | $ | 632 |
| | $ | 507 |
| | $ | 394 |
| | $ | 241 |
|
| Amortization of Capitalized Interest | | 1 |
| | 1 |
| | 2 |
| | 1 |
| | 2 |
| | 2 |
|
| Interest Capitalized | | (3 | ) | | (2 | ) | | (2 | ) | | (2 | ) | | — |
| | (2 | ) |
| Net adjustment for earnings from affiliates | | (3 | ) | | 4 |
| | — |
| | (2 | ) | | 2 |
| | 2 |
|
| Fixed Charges: | | | | | | | | | | | | |
| Interest expensed and capitalized, including amortization of debt issuance | | 38 |
| | 76 |
| | 139 |
| | 151 |
| | 118 |
| | 119 |
|
Portion of rental expenses on operating leases deemed to be representative of the interest factor (3) | | 9 |
| | 23 |
| | 21 |
| | 18 |
| | 15 |
| | 15 |
|
| Total Earnings | | $ | 407 |
| | $ | 886 |
| | $ | 792 |
| | $ | 673 |
| | $ | 531 |
| | $ | 377 |
|
| Fixed Charges: | | $ | 47 |
| | $ | 99 |
| | $ | 160 |
| | $ | 169 |
| | $ | 133 |
| | $ | 134 |
|
| Ratio of earnings to fixed charges | | 8.7 |
| | 8.9 |
| | 5.0 |
| | 4.0 |
| | 4.0 |
| | 2.8 |
|
(1) For the year ended December 31, 2015, the Company recorded non-cash goodwill impairment charges of $75 million and a non-cash intangible asset impairment charge of $27 million, as well as $44 million of interest expense related to the early extinguishment of debt.
(2) For the year ended December 31, 2014, the Company recorded a non-cash goodwill impairment charge of $47 million and $37 million of interest expense related to the early extinguishment of debt.
(3) The proportion of rental expense deemed to be representative of the interest factor is one third.
