EX-12 11 dex12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of ratio of earnings to fixed charges

Exhibit 12

CLEAR CHANNEL COMMUNICATIONS, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(unaudited)

 

     Predecessor            Successor  
     Year ended December 31,      Period  from
January 1
through
July  30,
2008		            Period from
July 31
through
December  31,
2008		     Year ended December 31,     Three Months ended
March 31,		  
(dollars in millions)    2006      2007             2009     2010     2010     2011  
 

Computation of earnings:

                        
 

Income (loss) before income taxes and adjustment for (income) loss from equity investees

    $ 1,103,364       $ 1,245,677       $ 491,809           $ (5,743,061 )    $ (4,521,667 )    $ (628,535 )    $ (252,683 )    $ (226,999 ) 
 

Distributed income (loss) from equity investees

      15,179         6,793         29,935             13,143        20,901        11,084        6,500        5,366   
 

Fixed charges

      858,938         870,457         477,597             900,069        1,896,482        1,919,554        483,646        468,094   
                                                                       

Total earnings

    $ 1,977,481       $ 2,122,927       $ 999,341           $ (4,829,849 )    $ (2,604,284 )    $ 1,302,103      $ 237,463      $ 246,461   
                                                                       

Computation of fixed charges:

                        
 

Interest expense

    $ 484,063       $ 451,870       $ 213,210           $ 715,768      $ 1,500,866      $ 1,533,341      $ 385,795      $ 369,666   
 

Portion of rent expense representative of interest

      374,875         418,587         264,387             184,301        395,616        386,213        97,851        98,428   
                                                                       

Total fixed charges

    $ 858,938       $ 870,457       $ 477,597           $ 900,069      $ 1,896,482      $ 1,919,554      $ 483,646      $ 468,094   
                                                                       

Ratio of earnings to fixed charges

      2.30         2.44         2.09             N/A        N/A        N/A        N/A        N/A   
                                                                       

 

  (1) 

Imputed interest on operating leases is estimated to be approximately one-third of rent expense.

 

  (2) 

For the years ended December 31, 2010, 2009 and 2008, and the three months ended March 31, 2011 and 2010, earnings available for fixed charges were inadequate to cover fixed charges by $617.5 million, $4.5 billion, $5.2 billion, $221.6 million and $246.2 million, respectively.