Exhibit (12)
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Year Ended December 31 | ||||||||||||||||||||
(in millions) | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
Loss from continuing operations before provision for income taxes | $ | (758 | ) | $ | (561 | ) | $ | (117 | ) | $ | (874 | ) | $ | (257 | ) | |||||
Adjustments: | ||||||||||||||||||||
Undistributed (earnings) loss of equity method investees | - | - | - | - | (1 | ) | ||||||||||||||
Interest expense | 156 | 149 | 119 | 108 | 143 | |||||||||||||||
Interest component of rental expense (1) | 29 | 32 | 36 | 39 | 43 | |||||||||||||||
Amortization of capitalized interest | 2 | 2 | 2 | 2 | 9 | |||||||||||||||
Earnings as adjusted | $ | (571 | ) | $ | (378 | ) | $ | 40 | $ | (725 | ) | $ | (63 | ) | ||||||
Fixed charges: | ||||||||||||||||||||
Interest expense | 156 | 149 | 119 | 108 | 143 | |||||||||||||||
Interest component of rental expense (1) | 29 | 32 | 36 | 39 | 43 | |||||||||||||||
Capitalized interest | 1 | 1 | 2 | 3 | 2 | |||||||||||||||
Total fixed charges | $ | 186 | $ | 182 | $ | 157 | $ | 150 | $ | 188 | ||||||||||
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, 2011 were inadequate to cover fixed charges. The coverage deficiency was $757 million. |
** | Earnings for the year ended December 31, 2010 were inadequate to cover fixed charges. The coverage deficiency was $560 million. |
*** | Earnings for the year ended December 31, 2009 were inadequate to cover fixed charges. The coverage deficiency was $117 million. |
**** | 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. |