1
Exhibit 12.1
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
( Dollars in millions, except ratios )
Year Ended December 31,
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1996 1997 1998 1999 2000
---- ---- ---- ---- ----
Pre-tax income from continuing operations before
adjustment for minority interests in consolidated
subsidiaries or income or loss from equity investees.......................... 432 563 67 243 166
Less: Capitalized interest..................................................... -5 -8 -11 -12 -11
Amortization of interest costs previously capitalized.......................... 6 4 4 4 6
---- ---- ---- ---- ----
Adjusted pre-tax income from continuing operations before
adjustment for minority interests in consolidated subsidiaries
or income or loss from equity investees....................................... $433 $559 $ 60 $235 $161
==== ==== ==== ==== ====
Fixed charges:
Interest expense, including capitalized interest, amortization of
debt issuance cost, preferred security distribution of subsidiary
trusts........................................................................ 40 47 114 248 271
One-third (deemed representative of the interest portion) of rent expense...... 10 10 12 18 19
---- ---- ---- ---- ----
Total fixed charges............................................................ $ 50 $ 57 $126 $266 $290
==== ==== ==== ==== ====
Adjusted pre-tax income from continuing operations before adjustment
for minority interests in consolidated subsidiaries or income or loss from
equity investees plus fixed charges........................................... $483 $616 $186 $501 $451
==== ==== ==== ==== ====
Ratio of earnings to fixed charges............................................. 9.7 10.8 1.5 1.9 1.6
2
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
( Dollars in millions, except ratios )
Three Months Ended
March 31,
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2000 2001
---- ----
Pre-tax income (loss) from continuing operations before
adjustment for minority interests in consolidated
subsidiaries or income or loss from equity investees............................. 56 (11)
Less: Capitalized interest........................................................ (2) (2)
Amortization of interest costs previously capitalized............................. 1 1
----- -----
Adjusted pre-tax income (loss) from continuing operations before
adjustment for minority interests in consolidated subsidiaries
or income or loss from equity investees.......................................... $ 55 $ (12)
----- -----
Fixed charges:
Interest expense, including capitalized interest, amortization of
debt issuance cost, preferred security distribution of subsidiary
trusts........................................................................... 57 72
One-third (deemed representative of the interest portion) of rent expense......... 5 5
----- -----
Total fixed charges............................................................... $ 62 $ 77
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Adjusted pre-tax income (loss) from continuing operations before adjustment for
minority interests in consolidated subsidiaries or income or loss from equity
investees plus fixed charges..................................................... $ 117 $ 65
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Ratio of earnings to fixed charges................................................ 1.9 (A)
Pro Forma
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Three Months Ended Year Ended
March 31, December 31,
2000 2000
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Pre-tax income from continuing operations before
adjustment for minority interests in consolidated
subsidiaries or income or loss from equity investees........................... 34 103
Less: Capitalized interest...................................................... -2 -11
Amortization of interest costs previously capitalized........................... 1 6
----- -----
Adjusted pre-tax income from continuing operations before
adjustment for minority interests in consolidated
subsidiaries or income or loss from equity investees........................... $ 33 $ 98
----- -----
Fixed charges:
Interest expense, including capitalized interest, amortization of
debt issuance cost, preferred security distribution of subsidiary
trusts......................................................................... 63 290
One-third (deemed representative of the interest portion) of rent expense....... 5 19
----- -----
Total fixed charges............................................................. $ 68 $ 309
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Adjusted pre-tax income from continuing operations before adjustment for
minority interests in consolidated subsidiaries or income or loss from equity
investees plus fixed charges.................................................. $ 101 $ 407
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Ratio of earnings to fixed charges.............................................. 1.5 1.3
(A) Due to the loss for the three months ended March 31, 2001, the ratio of
earnings to fixed charges was less than 1:1. The Company needed to generate an
additional $12 million in earnings to achieve a ratio of earnings to fixed
charges of 1:1.