EX-12.1 3 dex121.htm RATIO OF EARNINGS TO FIXED CHARGES OF NEWS CORPORATION Ratio of Earnings to Fixed Charges of News Corporation

Exhibit 12.1

News Corporation

Computation of Ratio of Earnings to Fixed Charges

(in Millions, Except Ratio Amounts)

(Unaudited)

 

     For the nine
months ended
March 31,
2009		     Fiscal years ended June 30,  
       2008     2007     2006      2005      2004  

Earnings:

               

(Loss) income from continuing operations before income tax expense and minority interest in subsidiaries

    $ (5,563 )   $ 7,321     $ 5,306     $ 4,405      $ 3,561      $ 2,755  

Add:

               

Equity losses (earnings) from affiliates

      369       (327 )     (1,019 )     (888 )      (355 )      (170 )

Dividends received from affiliates

      157       342       252       178        138        81  

Fixed Charges, excluding capitalized interest

      892       1,081       1,016       910        845        797  

Amortization of capitalized interest

      35       33       34       44        48        40  
                                                  

Total (losses) earnings available for fixed charges

    $ (4,110 )   $ 8,450     $ 5,589     $ 4,649      $ 4,237      $ 3,503  
                                                  

Fixed charges:

               

Interest on debt and finance lease charges

    $ 690     $ 882     $ 843     $ 792      $ 737      $ 684  

Capitalized interest

      45       44       24       28        31        42  

Perpetual preference dividends paid

      —         —         —         —          10        27  

Interest element on rental expense

      202       199       173       118        108        113  
                                                  

Total fixed charges

    $ 937     $ 1,125     $ 1,040     $ 938      $ 886      $ 866  
                                                  

Ratio of earnings to fixed charges

        **     7.5       5.4       5.0        4.8        4.0  
                                                  

 

** Earnings do not cover fixed charges by $5.0 billion during the nine months ended March 31, 2009 due to a non-cash impairment charge of $8.4 billion ($6.7 billion net of tax). (See Note 7 to the Unaudited Consolidated Financial Statements of News Corporation contained in its Quarterly Report on Form 10-Q, for the period ended March 31, 2009, filed May 7, 2009.)