EX-12.1 2 d196439dex121.htm EX-12.1

Exhibit 12.1

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

|  | Years Ended December 31, |  |  | Four Months Ended December 31, |  |  | Eight Months Ended August 31, |  |  | Years Ended December 31, |
(in millions) |  | 2015 |  |  | 2014 |  |  | 2013 |  |  | 2013 |  |  | 2012 |  |  | 2011 |
Earnings (loss) from continuing operations before income taxes |  | $ | 2 |  |  | $ | (49 | ) |  | $ | (55 | ) |  | $ | 2,406 |  |  | $ | (1,610 | ) |  | $ | (757 | )
Adjustments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense |  |  | 63 |  |  |  | 62 |  |  |  | 22 |  |  |  | 106 |  |  |  | 139 |  |  |  | 138 |
Interest component of rental expense (1) |  |  | 10 |  |  |  | 13 |  |  |  | 5 |  |  |  | 12 |  |  |  | 20 |  |  |  | 25 |
Amortization of capitalized interest |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2 |  |  |  | 2 |
Earnings available for fixed charges |  | $ | 75 |  |  | $ | 26 |  |  | $ | (28 | ) |  | $ | 2,524 |  |  | $ | (1,449 | ) |  | $ | (592 | )
Fixed charges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense |  |  | 63 |  |  |  | 62 |  |  |  | 22 |  |  |  | 106 |  |  |  | 139 |  |  |  | 138 |
Interest component of rental expense (1) |  |  | 10 |  |  |  | 13 |  |  |  | 5 |  |  |  | 12 |  |  |  | 20 |  |  |  | 25 |
Capitalized interest |  |  | 2 |  |  |  | 3 |  |  |  | — |  |  |  | — |  |  |  | 1 |  |  |  | 1 |
Total fixed charges |  | $ | 75 |  |  | $ | 78 |  |  | $ | 27 |  |  | $ | 118 |  |  | $ | 160 |  |  | $ | 164 |
Ratio of earnings to fixed charges |  |  | 1.0 |  |  |  | * |  |  |  | ** |  |  |  | 21.4 |  |  |  | * * * |  |  |  | * * * * |

(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, 2014 were inadequate to cover fixed charges. The coverage deficiency was $52 million.

** | Earnings for the four months ended December 31, 2013 were inadequate to cover fixed charges. The coverage deficiency was $55 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.