EX-12.1 5 d464524dex121.htm EX-12.1 EX-12.1

EXHIBIT 12.1

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Dollars in millions)

 

     Year Ended December 31,  
     2012     2011     2010     2009     2008  

Earnings:

           

Net Income (Loss) from continuing operations before income taxes, discontinued operations and cumulative effect of accounting change

    $ 4,542      $ 4,366      $ 3,919      $ 3,237      $ (4,397 ) 

Interest expense(1)(2)

      1,363        1,321        1,277        1,521        2,499   

Amortization of capitalized interest

      1        1        1        2        3   

Portion of rents representative of an interest factor(3)

      164        147        138        176        234   

Adjustment for equity earnings or losses of investee companies, net of cash distributions

      88        95        38        74        21   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total earnings (loss)

    $ 6,158      $ 5,930      $ 5,373      $ 5,010      $ (1,640 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed Charges:

           

Interest expense(1)(2)

    $ 1,363      $ 1,321      $ 1,277      $ 1,521      $ 2,499   

Capitalized interest(4)

      5        4        2        1        1   

Portion of rents representative of an interest factor(3)

      164        147        138        176        234   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed charges

    $ 1,532      $ 1,472      $ 1,417      $ 1,698      $ 2,734   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings to fixed charges

      4.0 x      4.0 x      3.8 x      3.0 x      —   (5) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) 

Earnings and fixed charges exclude accrued interest on uncertain tax positions that is included in income tax expense.

(2) 

For the years ended December 31, 2012, 2011, 2010, 2009, and 2008, amounts include $0 million, $0 million, $0 million, $218 million, and $970 million, respectively, related to discontinued operations.

(3) 

For the years ended December 31, 2012, 2011, 2010, 2009, and 2008, amounts include $0 million, $0 million, $0 million, $29 million, and $78 million, respectively, related to discontinued operations.

(4) 

For the years ended December 31, 2012, 2011, 2010, 2009, and 2008, amounts include $0 million $0 million, $0 million, $0 million, and $1 million, respectively, related to discontinued operations.

(5) 

Time Warner’s earnings were insufficient to cover its fixed charges by $4.374 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 Time Warner’s Publishing segment.