Exhibit 12.1
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Years Ended December 31, | Four Months Ended December 31, | Eight Months August 31, | Years Ended December 31, | |||||||||||||||||||||
(in millions) | 2015 | 2014 | 2013 | 2013 | 2012 | 2011 | ||||||||||||||||||
Earnings (loss) from continuing operations before income taxes | $ | 2 | $ | (49 | ) | $ | (55 | ) | $ | 2,406 | $ | (1,610 | ) | $ | (757 | ) | ||||||||
Adjustments: | ||||||||||||||||||||||||
Interest expense | 63 | 62 | 22 | 106 | 139 | 138 | ||||||||||||||||||
Interest component of rental expense (1) | 10 | 13 | 5 | 12 | 20 | 25 | ||||||||||||||||||
Amortization of capitalized interest | — | — | — | — | 2 | 2 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Earnings available for fixed charges | $ | 75 | $ | 26 | $ | (28 | ) | $ | 2,524 | $ | (1,449 | ) | $ | (592 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Fixed charges: | ||||||||||||||||||||||||
Interest expense | 63 | 62 | 22 | 106 | 139 | 138 | ||||||||||||||||||
Interest component of rental expense (1) | 10 | 13 | 5 | 12 | 20 | 25 | ||||||||||||||||||
Capitalized interest | 2 | 3 | — | — | 1 | 1 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total fixed charges | $ | 75 | $ | 78 | $ | 27 | $ | 118 | $ | 160 | $ | 164 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratio of earnings to fixed charges | 1.0 | * | ** | 21.4 | * * * | * * * * |
(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, 2014 were inadequate to cover fixed charges. The coverage deficiency was $52 million. |
** | Earnings for the four months ended December 31, 2013 were inadequate to cover fixed charges. The coverage deficiency was $55 million. |
* * * | Earnings for the year ended December 31, 2012 were inadequate to cover fixed charges. The coverage deficiency was $1,609 million. |
* * * * | Earnings for the year ended December 31, 2011 were inadequate to cover fixed charges. The coverage deficiency was $756 million. |