Exhibit (12)
Eastman Kodak Company
Computation of Ratio of Earnings to Fixed Charges
(in millions, except for ratios)
Year Ended December 31
2006 | 2005 | 2004 | 2003 | 2002 | |||||||||||||||
(Loss) earnings from continuingoperations beforeprovision for income taxes | $ | (346 | ) | $ | (799 | ) | $ | (113 | ) | $ | 62 | $ | 890 | ||||||
Adjustments: | |||||||||||||||||||
Minority interest in income of | |||||||||||||||||||
subsidiaries with fixed charges | 7 | 4 | 2 | 24 | 17 | ||||||||||||||
Undistributed (earnings)/loss of | |||||||||||||||||||
equity method investees | (7 | ) | (12 | ) | (30 | ) | 41 | 107 | |||||||||||
Interest expense | 262 | 211 | 168 | 147 | 173 | ||||||||||||||
Interest component of | |||||||||||||||||||
rental expense (1) | 57 | 50 | 54 | 53 | 53 | ||||||||||||||
Amortization of | |||||||||||||||||||
capitalized interest | 43 | 22 | 25 | 27 | 28 | ||||||||||||||
Earnings as adjusted | $ | 16 | $ | (524 | ) | $ | 106 | $ | 354 | $ | 1,268 | ||||||||
Fixed charges: | |||||||||||||||||||
Interest expense | $ | 262 | $ | 211 | $ | 168 | $ | 147 | $ | 173 | |||||||||
Interest component of | |||||||||||||||||||
rental expense (1) | 57 | 50 | 54 | 53 | 53 | ||||||||||||||
Capitalized interest | 3 | 3 | 2 | 2 | 3 | ||||||||||||||
Total fixed charges | $ | 322 | $ | 264 | $ | 224 | $ | 202 | $ | 229 | |||||||||
Ratio of earnings to | |||||||||||||||||||
fixed charges | * | ** | *** | 1.8 | x | 5.5 | x |
(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, 2006 were inadequate to cover fixed charges. The coverage deficiency was $306 million. | |
** | Earnings for the year ended December 31, 2005 were inadequate to cover fixed charges. The coverage deficiency was $788 million. | |
*** | Earnings for the year ended December 31, 2004 were inadequate to cover fixed charges. The coverage deficiency was $118 million. |