EX-12 2 a2218473zex-12.htm EX-12

Exhibit 12

 

The McClatchy Company

COMPUTATION OF EARNINGS TO FIXED CHARGES RATIO

(in thousands of dollars, except ratio data)

 

 

 

Year Ended

 

 

 

December 29,

 

December 30,

 

December 25,

 

December 26,

 

December 27,

 

 

 

2013

 

2012

 

2011

 

2010

 

2009

 

Fixed Charge Computation

 

 

 

 

 

 

 

 

 

 

 

Interest expenses:

 

 

 

 

 

 

 

 

 

 

 

Net interest expense

 

$

135,381

 

$

151,334

 

$

165,434

 

$

177,641

 

$

127,276

 

Plus: capitalized interest

 

798

 

748

 

193

 

101

 

200

 

Gross interest

 

136,179

 

152,082

 

165,627

 

177,742

 

127,476

 

Interest on unrecognized tax benefits

 

735

 

11,689

 

5,960

 

(1,632

)

(920

)

Amortization of debt discount

 

(6,673

)

(9,821

)

(11,092

)

(11,327

)

(7,442

)

Interest component of rent expense

 

4,585

 

5,666

 

4,509

 

5,021

 

5,501

 

Total fixed charges

 

$

134,826

 

$

159,616

 

$

165,004

 

$

169,804

 

$

124,615

 

Earnings Computation

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income taxes

 

$

32,059

 

$

(21,526

)

$

62,785

 

$

38,701

 

$

83,561

 

Earnings of equity investments (1)

 

(42,651

)

(31,935

)

(27,762

)

(11,752

)

(2,130

)

Impairment related charge recorded by equity investee (2)

 

 

 

 

2,947

 

2,022

 

Interest on unrecognized tax benefits

 

(735

)

(11,689

)

(5,960

)

1,632

 

920

 

Distributed income of equity investees

 

42,436

 

38,600

 

31,625

 

24,274

 

1,135

 

Add: fixed charges

 

134,826

 

159,616

 

165,004

 

169,804

 

124,615

 

Less: capitalized interest

 

(798

)

(748

)

(193

)

(101

)

(200

)

Total earnings as adjusted

 

$

165,137

 

$

132,318

 

$

225,498

 

$

225,505

 

$

209,923

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio Of Earnings to Fixed Charges

 

1.22

 

0.83

 

1.37

 

1.33

 

1.68

 

 


(1) The earnings from equity investments in 2012 includes the Company’s portion (approximately $7 million) of an impairment related charge that was recorded by an equity investee.

 

(2) Reflects the Company’s portion of loss related to an impairment and recorded in “Write-down of investments and land held for sale” in the Consolidated Statement of Income.