Exhibit (12)
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES | ||||||||||||||||||||
Year Ended December 31 | ||||||||||||||||||||
(in millions) | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||
Loss from continuing operations | ||||||||||||||||||||
before provision for income taxes | $ | (256 | ) | $ | (583 | ) | $ | (1,208 | ) | $ | (625 | ) | $ | (436 | ) | |||||
Adjustments: | ||||||||||||||||||||
Minority interest in income of | ||||||||||||||||||||
subsidiaries with fixed charges | (1 | ) | — | (3 | ) | (3 | ) | 19 | ||||||||||||
Undistributed (earnings) loss of | ||||||||||||||||||||
equity method investees | (1 | ) | (7 | ) | (12 | ) | (30 | ) | 41 | |||||||||||
Interest expense | 113 | 172 | 139 | 111 | 97 | |||||||||||||||
Interest component of rental | ||||||||||||||||||||
expense (1) | 43 | 53 | 50 | 54 | 53 | |||||||||||||||
Amortization of capitalized interest | 9 | 43 | 22 | 25 | 27 | |||||||||||||||
Earnings as adjusted | $ | (93 | ) | $ | (322 | ) | $ | (1,012 | ) | $ | (468 | ) | $ | (199 | ) | |||||
Fixed charges: | ||||||||||||||||||||
Interest expense | 113 | 172 | 139 | 111 | 97 | |||||||||||||||
Interest component of rental | ||||||||||||||||||||
expense (1) | 43 | 53 | 50 | 54 | 53 | |||||||||||||||
Capitalized interest | 2 | 3 | 3 | 2 | 2 | |||||||||||||||
Total fixed charges | $ | 158 | $ | 228 | $ | 192 | $ | 167 | $ | 152 | ||||||||||
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, 2007 were inadequate to cover fixed charges. The coverage deficiency was $251 million. | |
** | Earnings for the year ended December 31, 2006 were inadequate to cover fixed charges. The coverage deficiency was $550 million. | |
*** | Earnings for the year ended December 31, 2005 were in adequate 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. | |
***** | Earnings for the year ended December 31, 2003 were inadequate to cover fixed charges. The coverage deficiency was $351 million. |