Exhibit 12.1
Time Warner Inc.
Computation of Ratio of Earnings to Fixed Charges
($s in millions)
Computation of Ratio of Earnings to Fixed Charges
($s in millions)
| Year Ended December 31, | ||||||||||||||||||||
| Earnings: | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||
| Net Income (Loss) from continuing operations before income taxes, discontinued operations and cumulative effect of accounting change | $ | 3,283 | $ | (4,397 | ) | $ | 2,746 | $ | 3,165 | $ | 389 | |||||||||
Interest expense(2)(3) | 1,511 | 2,463 | 2,509 | 1,969 | 1,620 | |||||||||||||||
| Amortization of capitalized interest | 2 | 3 | 2 | 1 | 1 | |||||||||||||||
Portion of rents representative of an interest factor(4) | 180 | 235 | 239 | 238 | 203 | |||||||||||||||
| Adjustment for equity earnings or losses of investee companies, net of cash distributions | 68 | 27 | 49 | 62 | 29 | |||||||||||||||
Total earnings (loss) | $ | 5,044 | $ | (1,669 | ) | $ | 5,545 | $ | 5,435 | $ | 2,242 | |||||||||
Fixed Charges: | ||||||||||||||||||||
Interest expense(2)(3) | $ | 1,511 | $ | 2,463 | $ | 2,509 | $ | 1,969 | $ | 1,620 | ||||||||||
Capitalized interest(5) | 1 | 1 | 15 | 17 | 10 | |||||||||||||||
Portion of rents representative of an interest factor(4) | 180 | 235 | 239 | 238 | 203 | |||||||||||||||
Total fixed charges | $ | 1,692 | $ | 2,699 | $ | 2,763 | $ | 2,224 | $ | 1,833 | ||||||||||
Ratio of earnings to fixed charges | 3.0x | — | (1) | 2.0x | 2.4x | 1.2x | ||||||||||||||
| (1) | Time Warner Inc.’s earnings were insufficient to cover its fixed charges by $4.368 billion for the year ended December 31, 2008. Net loss from continuing operations before income taxes and discontinued operations for 2008 includes $7.139 billion of noncash impairments related to goodwill and identifiable intangible assets at the Publishing segment. | |
| (2) | Earnings and fixed charges exclude accrued interest on uncertain tax positions which is included in income tax expense. | |
| (3) | For the years ended December 31, 2009, 2008, 2007, 2006 and 2005, amounts include $218 million, $970 million, $916 million, $593 million and $322 million, respectively, related to discontinued operations. | |
| (4) | For the years ended December 31, 2009, 2008, 2007, 2006 and 2005, amounts include $29 million, $78 million, $80 million, $67 million and $51 million, respectively, related to discontinued operations. | |
| (5) | For the years ended December 31, 2009, 2008, 2007, 2006 and 2005, amounts include $0 million, $1 million, $5 million, $2 million and $1 million, respectively, related to discontinued operations. |