EX-12.1 5 g22316exv12w1.htm EX-12.1 exv12w1
Exhibit 12.1
Time Warner Inc.
Computation of Ratio of Earnings to Fixed Charges
($s in millions)
                                         
    Year Ended December 31,  
Earnings:   2009     2008     2007     2006     2005  
Net Income (Loss) from continuing operations before income taxes, discontinued operations and cumulative effect of accounting change
   $ 3,283     $ (4,397 )   $ 2,746     $ 3,165     $ 389  
Interest expense(2)(3)
     1,511       2,463       2,509       1,969       1,620  
Amortization of capitalized interest
     2       3       2       1       1  
Portion of rents representative of an interest factor(4)
     180       235       239       238       203  
Adjustment for equity earnings or losses of investee companies, net of cash distributions
     68       27       49       62       29  
 
                              
Total earnings (loss)
  $ 5,044     $ (1,669 )   $ 5,545     $ 5,435     $ 2,242  
 
                              
 
                                        
Fixed Charges:
                                        
Interest expense(2)(3)
   $ 1,511     $ 2,463     $ 2,509     $ 1,969     $ 1,620  
Capitalized interest(5)
     1       1       15       17       10  
Portion of rents representative of an interest factor(4)
     180       235       239       238       203  
 
                              
Total fixed charges
   $ 1,692     $ 2,699     $ 2,763     $ 2,224     $ 1,833  
 
                              
 
                                        
Ratio of earnings to fixed charges
     3.0x       — (1)     2.0x       2.4x       1.2x  
 
                              
 
(1)   Time Warner Inc.’s earnings were insufficient to cover its fixed charges by $4.368 billion for the year ended December 31, 2008. Net loss from continuing operations before income taxes and discontinued operations for 2008 includes $7.139 billion of noncash impairments related to goodwill and identifiable intangible assets at the Publishing segment.
 
(2)   Earnings and fixed charges exclude accrued interest on uncertain tax positions which is included in income tax expense.
 
(3)   For the years ended December 31, 2009, 2008, 2007, 2006 and 2005, amounts include $218 million, $970 million, $916 million, $593 million and $322 million, respectively, related to discontinued operations.
 
(4)   For the years ended December 31, 2009, 2008, 2007, 2006 and 2005, amounts include $29 million, $78 million, $80 million, $67 million and $51 million, respectively, related to discontinued operations.
 
(5)   For the years ended December 31, 2009, 2008, 2007, 2006 and 2005, amounts include $0 million, $1 million, $5 million, $2 million and $1 million, respectively, related to discontinued operations.