Exhibit 12.1
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
The following table shows our ratio of earnings to fixed charges for each of the five most recent fiscal years and the three months ended March 31, 2017.
|
| Year ended December 31, |
| Three |
| ||||||||
|
| 2012 |
| 2013 |
| 2014 |
| 2015 |
| 2016 |
| 2017(1) |
|
|
| (EUR in millions, except for ratio) |
| ||||||||||
Pre-tax income from continuing operations before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees |
| (876 | ) | 395 |
| 1,011 |
| 1,511 |
| (1,387 | ) | (273 | ) |
Fixed charges: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense(2) |
| 271 |
| 334 |
| 212 |
| 148 |
| 276 |
| 57 |
|
Interest portion of rental expense(3) |
| 119 |
| 80 |
| 51 |
| 54 |
| 114 |
| 27 |
|
Total fixed charges |
| 391 |
| 413 |
| 262 |
| 202 |
| 390 |
| 84 |
|
Pre-tax income from continuing operations before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees plus fixed charges |
| (485 | ) | 808 |
| 1,273 |
| 1,713 |
| (997 | ) | (189 | ) |
Ratio of earnings to fixed charges |
| (1.24 | ) | 1.96 |
| 4.85 |
| 8.49 |
| (2.56 | ) | (2.24 | ) |
Fixed charge deficiency (millions of EUR) |
| 876 |
| — |
| — |
| — |
| 1,387 |
| 273 |
|
(1) Based on unaudited numbers.
(2) Interest expense consists of interest expense on financial liabilities carried at amortized cost, net interest expense on derivatives not under hedge accounting, net interest on defined benefit pensions, and interest expense related to discontinued operations. Fixed charges exclude accrued interest cost on uncertain tax positions.
(3) The interest portion of rental expense is based on one-third of annual rent expense, which we deem to be a reasonable estimate of the portion of our rental expense that is attributable to interest.