Exhibit 12.1
STATEMENT REGARDING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERENCE DIVIDENDS
The following illustrates the computation of the historical ratio of earnings to fixed charges (amounts in thousands except ratios). While there are preference securities outstanding as of September 19, 2011, such preference securities do not accrue or otherwise pay any dividends. Additionally, while there were preference securities outstanding during a portion of the fiscal year ended 2010, such preference securities did not accrue or otherwise pay any dividends. Therefore, the ratio of earnings to combined fixed charges and preference dividends are identical to the ratios of earnings to fixed charges.
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| | | Historical | | | Historical | | | Pro Forma | |
| | | Year Ended December 31, | | | Six Months
Ended June 30, | | | Twelve
Months
Ended
December 31, | | | Six Months
Ended
June 30, | |
Fixed Charges | | 2006 | | | 2007 | | | 2008 | | | 2009 | | | 2010 | | | 2011 | | | 2010 | | | 2011 | |
Interest on debt | | $ | 95,322 | | | $ | 97,884 | | | $ | 85,026 | | | $ | 136,263 | | | $ | 114,082 | | | $ | 59,268 | | | $ | 145,100 | | | $ | 75,739 | |
Amortization of debt premium, discount and capitalized expenses | | | (6,233 | ) | | | (6,450 | ) | | | (4,320 | ) | | | 25,307 | | | | 45,110 | | | | 19,604 | | | | (8,213 | ) | | | (4,597 | ) |
Interest element of rentals* | | | 14,298 | | | | 13,102 | | | | 13,229 | | | | 12,148 | | | | 7,740 | | | | 3,906 | | | | 7,740 | | | | 3,906 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Fixed Charges | | $ | 103,397 | | | $ | 104,536 | | | $ | 93,935 | | | $ | 173,718 | | | $ | 166,932 | | | $ | 82,778 | | | $ | 144,627 | | | $ | 75,048 | |
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Earnings: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | 274,651 | | | $ | (640,362 | ) | | $ | (976,373 | ) | | $ | (622,019 | ) | | $ | (324,197 | ) | | $ | (144,852 | ) | | $ | (307,011 | ) | | $ | (139,624 | ) |
Add back: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) from discontinued operations | | | (11,060 | ) | | | (8,175 | ) | | | 150,709 | | | | (12,235 | ) | | | 23,084 | | | | — | | | | 23,084 | | | | — | |
Income tax provision (benefit) | | | 170,974 | | | | (19,565 | ) | | | (176,009 | ) | | | (262,682 | ) | | | (102,487 | ) | | | (7,127 | ) | | | (102,487 | ) | | | (7,127 | ) |
Loss (income) on equity method investment | | | 2,844 | | | | (1,633 | ) | | | (2,288 | ) | | | 33,861 | | | | 12,640 | | | | (1,199 | ) | | | 12,640 | | | | (1,199 | ) |
Fixed charges | | | 103,397 | | | | 104,536 | | | | 93,935 | | | | 173,718 | | | | 166,932 | | | | 82,778 | | | | 144,627 | | | | 75,048 | |
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Total Earnings | | $ | 540,806 | | | $ | (565,199 | ) | | $ | (910,026 | ) | | $ | (689,357 | ) | | $ | (224,028 | ) | | $ | (70,400 | ) | | $ | (229,147 | ) | | $ | (72,902 | ) |
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Ratio of Earnings to Fixed Charges | | | 5.2x | | | | (5.4x | ) | | | (9.7x | ) | | | (4.0x | ) | | | (1.3x | ) | | | (0.9x | ) | | | (1.6x | ) | | | (1.0x | ) |
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Additional earnings required to achieve a 1.0x ratio: | | | n/a | | | $ | 669,735 | | | $ | 1,003,961 | | | $ | 863,075 | | | $ | 390,960 | | | $ | 153,178 | | | $ | 373,774 | | | $ | 147,950 | |
| * | We determined the interest component of rent expense to be 10%. |
