EX-12 4 d495783dex12.htm EX-12

Exhibit (12)

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

|  | Year Ended December 31 |
(in millions) |  | 2012 |  |  | 2011 |  |  | 2010 |  |  | 2009 |  |  | 2008 |
Loss from continuing operations before provision for income taxes |  | $ | (1,560 | ) |  | $ | (699 | ) |  | $ | (425 | ) |  | $ | (5 | ) |  | $ | (738 | )
Adjustments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Undistributed (earnings) loss of equity method investees |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Interest expense |  |  | 158 |  |  |  | 155 |  |  |  | 148 |  |  |  | 118 |  |  |  | 107 |
Interest component of rental expense (1) |  |  | 23 |  |  |  | 29 |  |  |  | 32 |  |  |  | 36 |  |  |  | 39 |
Amortization of capitalized interest |  |  | 2 |  |  |  | 2 |  |  |  | 2 |  |  |  | 2 |  |  |  | 2 |
Earnings as adjusted |  | $ | (1,377 | ) |  | $ | (513 | ) |  | $ | (243 | ) |  | $ | 151 |  |  | $ | (590 | )
Fixed charges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense |  |  | 158 |  |  |  | 155 |  |  |  | 148 |  |  |  | 118 |  |  |  | 107 |
Interest component of rental expense (1) |  |  | 23 |  |  |  | 29 |  |  |  | 32 |  |  |  | 36 |  |  |  | 39 |
Capitalized interest |  |  | 1 |  |  |  | 1 |  |  |  | 1 |  |  |  | 2 |  |  |  | 3 |
Total fixed charges |  | $ | 182 |  |  | $ | 185 |  |  | $ | 181 |  |  | $ | 156 |  |  | $ | 149 |
Ratio of earnings to fixed charges |  |  |  | * |  |  |  | ** |  |  |  | *** |  |  |  | **** |  |  |  | *****

(1) | Interest component of rental expense is estimated to equal 1/3 of such expense, which is considered a reasonable approximation of the interest factor.

* | Earnings for the year ended December 31, 2012 were inadequate to cover fixed charges. The coverage deficiency was $1559 million.

** | Earnings for the year ended December 31, 2011 were inadequate to cover fixed charges. The coverage deficiency was $698 million.

*** | Earnings for the year ended December 31, 2010 were inadequate to cover fixed charges. The coverage deficiency was $424 million.

**** | Earnings for the year ended December 31, 2009 were inadequate to cover fixed charges. The coverage deficiency was $5 million.

***** | Earnings for the year ended December 31, 2008 were inadequate to cover fixed charges. The coverage deficiency was $739 million.