EX-12 5 d693724dex12.htm EX-12

Exhibit (12)

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

|  | Four Months Ended December 31 |  |  | Eight Months Ended August 31 |  |  | Year Ended December 31 |
(in millions) |  | 2013 |  |  | 2013 |  |  | 2012 |  |  | 2011 |  |  | 2010 |  |  | 2009 |
Loss from continuing operations before provision for income taxes |  | $ | (78 | ) |  | $ | 2,356 |  |  | $ | (1,610 | ) |  | $ | (757 | ) |  | $ | (425 | ) |  | $ | (5 | )
Adjustments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Undistributed (earnings) loss of equity method investees |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Interest expense |  |  | 22 |  |  |  | 106 |  |  |  | 139 |  |  |  | 138 |  |  |  | 148 |  |  |  | 118 |
Interest component of rental expense (1) |  |  | 5 |  |  |  | 12 |  |  |  | 20 |  |  |  | 25 |  |  |  | 32 |  |  |  | 36 |
Amortization of capitalized interest |  |  | — |  |  |  | — |  |  |  | 2 |  |  |  | 2 |  |  |  | 2 |  |  |  | 2 |
Earnings as adjusted |  | $ | (51 | ) |  | $ | 2,474 |  |  | $ | (1,449 | ) |  | $ | (592 | ) |  | $ | (243 | ) |  | $ | 151 |
Fixed charges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense |  |  | 22 |  |  |  | 106 |  |  |  | 139 |  |  |  | 138 |  |  |  | 148 |  |  |  | 118 |
Interest component of rental expense (1) |  |  | 5 |  |  |  | 12 |  |  |  | 20 |  |  |  | 25 |  |  |  | 32 |  |  |  | 36 |
Capitalized interest |  |  | — |  |  |  | — |  |  |  | 1 |  |  |  | 1 |  |  |  | 1 |  |  |  | 2 |
Total fixed charges |  | $ | 27 |  |  | $ | 118 |  |  | $ | 160 |  |  | $ | 164 |  |  | $ | 181 |  |  | $ | 156 |
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 four months ended December 31, 2013 were inadequate to cover fixed charges. The coverage deficiency was $66 million.

** | Earnings for the eight months ended August 31, 2013 were adequate to cover fixed charges. The coverage amount was $2,356 million.

*** | Earnings for the year ended December 31, 2012 were inadequate to cover fixed charges. The coverage deficiency was $1,609 million.

**** | Earnings for the year ended December 31, 2011 were inadequate to cover fixed charges. The coverage deficiency was $756 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.