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 | ||||||||||||||||||
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Earnings as adjusted | $ | (51 | ) | $ | 2,474 | $ | (1,449 | ) | $ | (592 | ) | $ | (243 | ) | $ | 151 | ||||||||
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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 | ||||||||||||||||||
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Total fixed charges | $ | 27 | $ | 118 | $ | 160 | $ | 164 | $ | 181 | $ | 156 | ||||||||||||
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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. |