| For the Nine Months Ended September 30, | For the Years Ended December 31, | ||||||||||||||||||||||
| 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||
| Calculation of fixed charges ratio: | |||||||||||||||||||||||
Income before provision for income taxes, equity in earnings of unconsolidated subsidiaries and cumulative effect of change in accounting policy(2) | $ | 1,026 | $ | 1,184 | $ | 1,073 | $ | 542 | $ | 978 | $ | 925 | |||||||||||
| Add/(deduct): | |||||||||||||||||||||||
| Fixed charges | 112 | 132 | 125 | 138 | 142 | 131 | |||||||||||||||||
| Amortization of capitalized interest | 2 | 3 | 4 | 4 | 3 | 2 | |||||||||||||||||
| Capitalized interest | (2 | ) | (1 | ) | (2 | ) | (1 | ) | (2 | ) | (2 | ) | |||||||||||
| Total earnings available for fixed charges | $ | 1,138 | $ | 1,318 | $ | 1,200 | $ | 683 | $ | 1,121 | $ | 1,056 | |||||||||||
Fixed charges: | |||||||||||||||||||||||
| Interest expense | $ | 99 | $ | 117 | $ | 109 | $ | 123 | $ | 125 | $ | 114 | |||||||||||
| Capitalized interest | 2 | 1 | 2 | 1 | 2 | 2 | |||||||||||||||||
Interest component of rental expense(1) | 11 | 14 | 14 | 14 | 15 | 15 | |||||||||||||||||
| Total fixed charges | $ | 112 | $ | 132 | $ | 125 | $ | 138 | $ | 142 | $ | 131 | |||||||||||
| Ratio of earnings to fixed charges | 10.2x | 10.0x | 9.6x | 4.9x | 7.9x | 8.1x | |||||||||||||||||
| (1) | Represents a reasonable estimate of the interest component of rental expense incurred by us. |
| (2) | Due to the completion of the IRS audit for our 2006-2008 federal income tax returns in August 2013, we recognized $430 million of other expense, net, as we no longer anticipate collecting amounts from Mondelēz. Additionally, in June 2013, a bill was enacted by the Canadian government, which reduced amounts amortized for income tax purposes. As a result, we recognized $38 million of indemnity income due to the reduction of our long-term liability to Mondelēz. |
