Exhibit (12)
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES |
Year Ended December 31 | ||||||||||||||||||||
(in millions) | 2008 | 2007 | 2006 | 2005 | 2004 | |||||||||||||||
Loss from continuing operations before provision for income taxes | $ | (874 | ) | $ | (257 | ) | $ | (582 | ) | $ | (1,211 | ) | $ | (628 | ) | |||||
Adjustments: | ||||||||||||||||||||
Undistributed (earnings) loss of equity method investees | - | (1 | ) | (7 | ) | (12 | ) | (30 | ) | |||||||||||
Interest expense | 108 | 143 | 262 | 211 | 168 | |||||||||||||||
Interest component of rental expense (1) | 39 | 43 | 53 | 50 | 54 | |||||||||||||||
Amortization of capitalized interest | 2 | 9 | 43 | 22 | 25 | |||||||||||||||
Earnings as adjusted | $ | (725 | ) | $ | (63 | ) | $ | (231 | ) | $ | (940 | ) | $ | (411 | ) | |||||
Fixed charges: | ||||||||||||||||||||
Interest expense | 108 | 143 | 262 | 211 | 168 | |||||||||||||||
Interest component of rental expense (1) | 39 | 43 | 53 | 50 | 54 | |||||||||||||||
Capitalized interest | 3 | 2 | 3 | 3 | 2 | |||||||||||||||
Total fixed charges | $ | 150 | $ | 188 | $ | 318 | $ | 264 | $ | 224 | ||||||||||
Ratio of earnings to fixed charges | * | ** | *** | **** | ***** | |||||||||||||||
(1) | Interest component of rental expense is estimated to equal 1/3 of such expense, which is considered a reasonable approximation of the interest factor. |
* | Earnings for the year ended December 31, 2008 were inadequate to cover fixed charges. The coverage deficiency was $875 million. |
** | Earnings for the year ended December 31, 2007 were inadequate to cover fixed charges. The coverage deficiency was $251 million. |
*** | Earnings for the year ended December 31, 2006 were in adequate to cover fixed charges. The coverage deficiency was $549 million. |
**** | Earnings for the year ended December 31, 2005 were inadequate to cover fixed charges. The coverage deficiency was $1,204 million. |
***** | Earnings for the year ended December 31, 2004 were inadequate to cover fixed charges. The coverage deficiency was $635 million. |