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EXHIBIT (12)(b) COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
(in millions) (unaudited)
Three Months Ended Year Ended
March 31 December 31
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1997 1996 1996
---- ---- ----
Loss before income taxes and
minority interest $ (210) $ (998) $(1,190)
Less: Equity in income of 50 percent
or less owned affiliates 1 - 9
Add: Combined fixed charges and
preferred dividends 140 170 557
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Earnings as adjusted $ (71) $ (828) $ (642)
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Combined fixed charges and preferred
dividends:
Interest expense $ 114 $ 146 $ 456
Rental expense 10 6 28
Pre-tax earnings required to cover
preferred dividend requirements (b) 16 18 73
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Total combined fixed charges and
preferred dividends $ 140 $ 170 $ 557
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Ratio of earnings to combined fixed
charges and preferred dividends (a) (a) (a)
======= ======= =======
(a) Additional income before income taxes and minority interest necessary to
attain a ratio of 1.00x for the three months ended March 31, 1997, March
31, 1996, and the year ended December 31, 1996 would be $211 million,
$998 million, and $1,199 million, respectively.
(b) Dividend requirement divided by 100% minus the effective income tax rate
or the statutory rate, whichever is more appropriate.
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