EX-12 2 d226052dex12.htm COMPUTATION OF EARNINGS TO FIXED CHARGES Computation of Earnings to Fixed Charges

Exhibit 12

The McClatchy Company

COMPUTATION OF EARNINGS TO FIXED CHARGES RATIO

(in thousands of dollars, except ratio data)

 

     Year Ended  
     Dec 25,
2011		     Dec 26,
2010		     Dec 27,
2009		     Dec 28,
2008		     Dec 30,
2007		  

Fixed Charge Computation

           

Interest Expenses:

           

Net interest expense

    $ 165,434      $ 177,641      $ 127,276      $ 157,385      $ 197,997   

Plus Capitalized interest

      193        101        200        192        468   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Gross interest

      165,627        177,742        127,476        157,577        198,465   

Interest on Unrecognized Tax Benefits (1)

      5,960        (1,632 )      (920 )      (9,478 )      (7,270 ) 

Amortization of debt discount

      (11,092 )      (11,327 )      (7,442 )      (4,911 )      (2,352 ) 

Interest Component of Rent Expense

      4,509        5,021        5,501        6,098        5,679   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Fixed Charges

    $ 165,004      $ 169,804      $ 124,615      $ 149,286      $ 194,522   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings Computation

           

Income from Continuing Operations Before Income Taxes (2)

    $ 62,785      $ 38,701      $ 83,561      $ 22,085      $ (2,883,191 ) 

(Earnings) Losses of Equity Investments

      (27,762 )      (11,752 )      (2,130 )      14,021        36,899   

Impairment Related Charge Recorded by Equity Investee (3)

      —          2,947        2,022        16,947        —     

Interest on Unrecognized Tax Benefits

      (5,960 )      1,632        920        9,478        7,270   

Distributed Income of Equity Investees

      31,625        24,274        1,135        1,740        7,424   

Add: Fixed Charges

      165,004        169,804        124,615        149,286        194,522   

Less: Capitalized Interest

      (193 )      (101 )      (200 )      (192 )      (468 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Earnings as Adjusted

    $ 225,499      $ 225,505      $ 209,923      $ 213,365      $ (2,637,544 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio Of Earnings to Fixed Charges (4)

      1.37        1.33        1.68        1.43        —     

 

(1) The Company began recording the interest on unrecognized tax benefits in interest expense in fiscal 2007 when it adopted FIN 48.
(2) Income from continuing operations before income taxes in 2009 and 2010 have been restated as discussed in Note 12 to the Consolidated Financial Statements filed in the Company’s Form 10-K for the year ended December 25, 2011.
(3) 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.
(4) Earnings were inadequate to cover fixed charges by $2.8 billion for the year ended December 30, 2007, as a result of non-cash impairment charges of $3.0 billion.