Exhibit 12.1
RATIO OF EARNINGS TO FIXED CHARGES
The following table sets forth our ratio of earnings to fixed charges on a historical basis for each of the last five years ended December 31, 2012 and for the nine months ended September 30, 2013.
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| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Nine Months Ended | | |
| | | September 30 | | Year Ended December 31, |
| (Dollars in millions) | | 2013 | | 2012 | | 2011 | | 2010 | | 2009 | | 2008 |
| Earnings: | | | | | | | | | | | | |
| Add: | | | | | | | | | | | | |
| Income (loss) from continuing operations before income taxes | | $ | 20 |
| | $ | (298 | ) | | $ | (25 | ) | | $ | 59 |
| | $ | 91 |
| | $ | (332 | ) |
| Fixed charges (see below) | | 78 |
| | 90 |
| | 86 |
| | 99 |
| | 104 |
| | 133 |
|
| | | 97 |
| | (208 | ) | | 60 |
| | 158 |
| | 195 |
| | (199 | ) |
| | | | | | | | | | | | | |
| Subtract: | | | | | | | | | | | | |
| Undistributed shares of income (loss) of less-than-fifty-percent-owned investees | | — |
| | (33 | ) | | (6 | ) | | (3 | ) | | 17 |
| | 10 |
|
| Capitalized interest | | 2 |
| | 1 |
| | — |
| | — |
| | — |
| | — |
|
| | | 2 |
| | $ | (33 | ) | | $ | (6 | ) | | $ | (3 | ) | | $ | 17 |
| | $ | 10 |
|
| Total earnings (as defined) | | $ | 95 |
| | $ | (175 | ) | | $ | 67 |
| | $ | 161 |
| | $ | 178 |
| | $ | (209 | ) |
| | | | | | | | | | | | | |
| Fixed charges: | | | | | | | | | | | | |
| Interest expense | | $ | 45 |
| | $ | 45 |
| | $ | 52 |
| | $ | 57 |
| | $ | 62 |
| | $ | 81 |
|
| Capitalized interest | | 2 |
| | 1 |
| | — |
| | — |
| | — |
| | — |
|
| Estimated interest component of rental expense | | 31 |
| | 43 |
| | 34 |
| | 42 |
| | 42 |
| | 52 |
|
| Total fixed charges (as defined) | | $ | 78 |
| | $ | 90 |
| | $ | 86 |
| | $ | 99 |
| | $ | 104 |
| | $ | 133 |
|
| | | | | | | | | | | | | |
| Ratio of Earnings to Fixed Charges (a) | | 1.24x | | (b) | | (b) | | 1.63x | | 1.71x | | (b) |
| Table may not total due to rounding. | | | | | | | | | | | | |
|
| |
| (a) | Earnings is the amount resulting from adding and subtracting the following items. Add the following: (i) pre-tax income from continuing operations before adjustment for income or loss from equity investees; and (ii) fixed charges. From the total of the added items, subtract the following: (i) interest capitalized; and (ii) undistributed income (loss) of equity investees. Total fixed charges is the sum of interest expense, capitalized interest and the estimated interest component of rental expense. |
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| |
| (b) | For these periods, earnings were inadequate to cover fixed charges. The amount of the coverage deficiencies were: $265 million for the year ended December 31, 2012; $19 million for the year ended December 31, 2011; and $342 million for the year ended December 31, 2008. |
