Exhibit 12.1
Computation of Ratio of Earnings to Fixed Charges
The following table sets forth our ratio of earnings to fixed charges for each of the periods shown on a combined basis for the Predecessor period and on a consolidated basis for the Successor period. For purposes of determining the ratio of earnings to fixed charges, earnings are defined as earnings (loss) from continuing operations before income taxes, plus fixed charges. The term “fixed charges” means the sum of the following: (i) interest expense, (ii) amortized premiums, discounts and capitalized expenses related to indebtedness and (iii) an estimate of the interest within rental expense (iv) loss on early extinguishment of debt representing write-off of unamortized debt issue cost, original issue discount and call premium fees.
| | Predecessor | | | Successor | |
($ in millions, except ratios) | | Year
ended
December
31, 2010 | | Year ended
December
31, 2011 | | Period from
January 1, 2012
to June 6, 2012 | | | From
inception
April 23, 2012
to December
31, 2012 | | Year ended
December
31, 2013 | | Year ended
December
31,2014 | |
| | | | | | | | | | |
Earnings | | | | | | | | | | | | | | |
Pre-tax income (loss) from continuing operations | | $ | 35,642 | | $ | 24,740 | | $ | (12,436 | ) | | $ | 84,105 | ) | $ | (429,916 | ) | $ | (59,708 | ) |
Fixed charges | | 2,659 | | 2,438 | | 1,050 | | | 50,578 | | 74,281 | | 73,281 | |
Earnings | | 38,301 | | 27,178 | | (11,386 | ) | | (33,527 | ) | (355,635 | ) | 13,573 | |
Fixed Charges | | | | | | | | | | | | | | |
Interest expense | | — | | 63 | | — | | | 39,662 | | 62,092 | | 63,815 | |
Amortization of original issue discounts related to indebtedness | | — | | — | | — | | | 1,102 | | 2,557 | | 3,266 | |
Amortization of debt issue costs | | — | | — | | — | | | 1,630 | | 2,643 | | 2,535 | |
Unamortized debt issue costs written off | | — | | — | | — | | | 2,405 | | 951 | | — | |
Unamortized original issue discount written off | | — | | — | | — | | | 2,705 | | 1,402 | | — | |
October 2012 debt refinancing costs | | — | | — | | — | | | 1,587 | | — | | — | |
April 2013 debt refinancing costs | | — | | — | | — | | | — | | 936 | | — | |
Estimate of interest in rental expense | | 2,659 | | 2,375 | | 1,050 | | | 1,487 | | 3,700 | | 3,665 | |
Total fixed charges | | $ | 2,659 | | $ | 2,438 | | $ | 1,050 | | | $ | 50,578 | | $ | 74,281 | | $ | 73,281 | |
| | | | | | | | | | | | | | |
Ratio of Earnings to Fixed Charges (1) | | 14.4 | | 11.1 | | — | | | — | | — | | 0.2 | |
| | | | | | | | | | | | | | |
Additional Pre-Tax Earnings to Achieve 1:1 Ratio | | $ | — | | $ | — | | $ | 12,436 | | | $ | 84,105 | | $ | 429,916 | | $ | 59,708 | |
(1) The ratio of earnings to fixed charges is computed by dividing earnings (loss) from operations plus fixed charges by fixed charges.
