EX-12 2 mni-20161225ex1269b944b.htm EX-12 mini_Ex_12

Exhibit 12

The McClatchy Company

COMPUTATION OF EARNINGS TO FIXED CHARGES RATIO

(in thousands of dollars, except ratio data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended

 

 

December 25,

 

December 27,

 

December 28,

 

December 29,

 

December 30,

 

 

2016

 

2015

 

2014

 

2013

 

2012

 

Fixed Charge Computation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Net interest expense

$
83,168

 

$
85,973

 

$
127,503

 

$
135,381

 

$
151,334

 

 Plus: capitalized interest

 
323

 

 
100

 

 
434

 

 
798

 

 
748

 

 Gross interest

 
83,491

 

 
86,073

 

 
127,937

 

 
136,179

 

 
152,082

 

Interest on unrecognized tax benefits

 
(470)

 

 
293

 

 
(131)

 

 
735

 

 
11,689

 

Amortization of debt discount

 
(3,024)

 

 
(3,550)

 

 
(6,063)

 

 
(6,673)

 

 
(9,821)

 

Interest component of rent expense

 
5,528

 

 
4,319

 

 
4,859

 

 
4,585

 

 
5,666

 

Total fixed charges

 
85,525

 

 
87,135

 

 
126,602

 

 
134,826

 

 
159,616

 

Earnings Computation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 before income taxes (1)

 
(47,258)

 

 
(311,959)

 

 
607,207

 

 
28,103

 

 
(27,691)

 

Earnings of equity investments 

 
(12,492)

 

 
(10,086)

 

 
(19,084)

 

 
(42,651)

 

 
(31,935)

 

Impairment related charge recorded by equity investee (2)

 

 —

 

 
7,500

 

 

 —

 

 

 —

 

 

 —

 

Interest on unrecognized tax benefits

 
470

 

 
(293)

 

 
131

 

 
(735)

 

 
(11,689)

 

Distributed income of equity investees (3)

 
6,000

 

 
14,960

 

 
162,329

 

 
42,436

 

 
38,600

 

Add: fixed charges

 
85,525

 

 
87,135

 

 
126,602

 

 
134,826

 

 
159,616

 

Less: capitalized interest

 
(323)

 

 
(100)

 

 
(434)

 

 
(798)

 

 
(748)

 

Total earnings (loss) as adjusted

$
31,922

 

$
(212,843)

 

$
876,751

 

$
161,181

 

$
126,153

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio Of Earnings to Fixed Charges (4)

 
0.37

 

 

 —

 

 
6.93

 

 
1.20

 

 
0.79

 

(1)

The income from continuing operations before taxes in 2015 includes non-cash impairment charges of $304.8 million for goodwill and intangibles, and 2014 includes a gain on sale of our equity investments of $561.0 million.

(2)

Reflects the Company's portion of loss related to an impairment and it is recorded in "Equity income in unconsolidated companies, net" in the Consolidated Statements of Operations.

(3)

The distributed income of equity investees in 2014 includes the Company's portion (approximately $147 million) of Classified Ventures LLP's sale of the Apartments.com business.

(4)

Earnings were inadequate to cover fixed charges by $214 million for the year ended December 27, 2015, as a result of non-cash charges of $304.8 million.