Exhibit (12)
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(in millions) | Year Ended December 31, 2015 | Year Ended December 31, 2014 | Four Months Ended December 31, 2013 | Eight Months Ended August 31, 2013 |
Years Ended December 31, | |||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||||
Loss from continuing operations before provision for income taxes | $ | (40 | ) | $ | (112 | ) | $ | (74 | ) | $ | 2,356 | $ | (1,610 | ) | $ | (757 | ) | |||||||
Adjustments: | ||||||||||||||||||||||||
Undistributed (earnings) loss of equity method investees | — | — | — | — | — | — | ||||||||||||||||||
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 | ||||||||||||||||||
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Earnings available for fixed charges | $ | 33 | $ | (37 | ) | $ | (47 | ) | $ | 2,474 | $ | (1,449 | ) | $ | (592 | ) | ||||||||
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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 | ||||||||||||||||||
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Total fixed charges | $ | 75 | $ | 78 | $ | 27 | $ | 118 | $ | 160 | $ | 164 | ||||||||||||
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Ratio of earnings to fixed charges | * | * * | * * * | 21.00 | * * * * | * * * * * |
(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, 2015 were inadequate to cover fixed charges. The coverage deficiency was $42 million. |
* * | Earnings for the year ended December 31, 2014 were inadequate to cover fixed charges. The coverage deficiency was $115 million. |
* * * | Earnings for the four months ended December 31, 2013 were inadequate to cover fixed charges. The coverage deficiency was $74 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. |