| Year ended December 31, | ||||||||||||||||||||
| 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||
| (Loss) income before taxes and equity investees | $ | (1,765,053 | ) | $ | (947,639 | ) | $ | (2,234,654 | ) | $ | 525,328 | $ | 656,493 | |||||||
| Distributions from equity investees | — | 22,204 | 51,512 | 150,549 | 144,161 | |||||||||||||||
| Net (loss) earnings | (1,765,053 | ) | (925,435 | ) | (2,183,142 | ) | 675,877 | 800,654 | ||||||||||||
| Fixed charges: | ||||||||||||||||||||
| Interest expense (2) | 65,485 | 65,659 | 41,130 | 38,473 | 39,905 | |||||||||||||||
| Amortization of debt expense | 23,781 | 15,415 | 856 | 875 | 1,186 | |||||||||||||||
| Rent expense (1/3) (reasonable approximation of the interest factor) | 3,531 | 4,074 | 3,888 | 3,624 | 3,694 | |||||||||||||||
| Total fixed charges | 92,797 | 85,148 | 45,874 | 42,972 | 44,785 | |||||||||||||||
| Net (loss) earnings and fixed charges | $ | (1,672,256 | ) | $ | (840,287 | ) | $ | (2,137,268 | ) | $ | 718,849 | $ | 845,439 | |||||||
| Ratio of net (loss) earnings and fixed charges to fixed charges | (1) | (1) | (1) | 16.7 | 18.9 | |||||||||||||||
| (1) | Total earnings were insufficient to cover fixed charges by $1.8 billion, $925.4 million and $2.2 billion in 2009, 2008 and 2007, respectively. Total losses for 2009 included an approximately $1.8 billion increase in net loss reserves. Total losses for 2008 included an approximately $1.9 billion increase in net loss reserves. Total losses for 2007 included an approximately $1.5 billion increase in net loss reserves and approximately $1.2 billion associated with establishing a premium deficiency reserve on our Wall Street bulk transactions. The loss before taxes and equity investees for 2007 excludes a $466 million impairment of our entire interests in C-BASS. | |
| (2) | Interest expense excludes interest on uncertain tax positions. |
