Exhibit 12.1
Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends
Four Months Ended December 31, 2013 | Eight Months Ended August 31, 2013 | Year Ended December 31, 2012 | ||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||
(in millions) | 2016 | 2015 | 2014 | |||||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | 78 | $ | 2 | $ | (49 | ) | $ | (55 | ) | $ | 2,406 | $ | (1,610 | ) | |||||||||
Series A Preferred Stock dividends | (3 | ) | — | — | — | — | — | |||||||||||||||||
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Income (loss) from continuing operations before income taxes attributable to common stockholders | 75 | 2 | (49 | ) | (55 | ) | 2,406 | (1,610 | ) | |||||||||||||||
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Adjustments: | ||||||||||||||||||||||||
Interest expense | 60 | 63 | 62 | 22 | 106 | 139 | ||||||||||||||||||
Interest component of rental expense (1) | 9 | 10 | 13 | 5 | 12 | 20 | ||||||||||||||||||
Amortization of capitalized interest | — | — | — | — | — | 2 | ||||||||||||||||||
Series A Preferred Stock dividends | 3 | — | — | — | — | — | ||||||||||||||||||
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Earnings available for fixed charges | $ | 147 | $ | 75 | $ | 26 | $ | (28 | ) | $ | 2,524 | $ | (1,449 | ) | ||||||||||
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Fixed charges: | ||||||||||||||||||||||||
Interest expense | 60 | 63 | 62 | 22 | 106 | 139 | ||||||||||||||||||
Interest component of rental expense (1) | 9 | 10 | 13 | 5 | 12 | 20 | ||||||||||||||||||
Capitalized interest | — | 2 | 3 | — | — | 1 | ||||||||||||||||||
Series A Preferred Stock dividends | 3 | — | — | — | — | — | ||||||||||||||||||
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Total fixed charges and preferred stock dividends | $ | 72 | $ | 75 | $ | 78 | $ | 27 | $ | 118 | $ | 160 | ||||||||||||
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Ratio of earnings to combined fixed charges and preferred stock dividends | 2.0 | 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. |