EX-12 4 g17686exv12.htm EX-12 COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES EX-12 COMPUTATION OF RATIO OF EARNINGS TO FIXED C
Exhibit 12
Time Warner Cable Inc.
Computation of Ratio of Earnings to Fixed Charges and Ratio of Earnings
to Combined Fixed Charges and Preferred Dividend Requirements
($ in millions)
                                         
    Year Ended December 31,  
    2008     2007     2006     2005     2004  
Earnings:
                                       
Net income (loss) before income taxes, discontinued operations and cumulative effect of accounting change
  $ (12,050 )   $ 1,863     $ 1,556     $ 1,302     $ 1,085  
Interest expense
    961       907       690       501       491  
Portion of rents representative of an interest factor
    63       61       50       32       33  
Amortization of capitalized interest
    3       3       2       2       2  
Preferred stock dividend requirements of majority-owned subsidiaries
                             
Adjustment for partially owned subsidiaries
and 50% owned companies
    (1,021 )     165       135       119       90  
Distributions received less earnings of less than
50% owned companies
    6       63       4       4       6  
 
                             
Total earnings
  $ (12,038 )   $ 3,062     $ 2,437     $ 1,960     $ 1,707  
 
                             
 
                                       
Fixed Charges:
                                       
Interest expense, net
  $ 961     $ 907     $ 690     $ 501     $ 491  
Portion of rents representative of an interest factor
    63       61       50       32       33  
Capitalized interest
    1       5       2       1       1  
Preferred stock dividend requirements of majority-owned subsidiaries
                             
Adjustment for partially owned subsidiaries and
50% owned companies
                43       60       39  
 
                             
Total fixed charges
  $ 1,025     $ 973     $ 785     $ 594     $ 564  
 
                             
 
                                       
Pretax income necessary to cover preferred
dividend requirements
                             
 
                             
Total combined
  $ 1,025     $ 973     $ 785     $ 594     $ 564  
 
                             
 
                                       
Ratio of earnings to fixed charges
(deficiency in the coverage of fixed charges by earnings before fixed charges)
  $ (13,063 )     3.1 x     3.1 x     3.3 x     3.0 x
 
                             
 
                                       
Ratio of earnings to combined fixed charges and preferred dividend requirements (deficiency in the coverage of combined fixed charges and preferred dividend requirements deficiency)
  $ (13,063 )     3.1 x     3.1 x     3.3 x     3.0 x