Exhibit 12
iHeart Communications, Inc.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(unaudited)
Year Ended December 31, | ||||||||||||||||||||
(dollars in thousands) | 2010 | 2011 | 2012 | 2013 | 2014 | |||||||||||||||
Computation of earnings: | ||||||||||||||||||||
Income (loss) before income taxes and adjustment for (income) loss from equity investees | $ | (628,535 | ) | $ | (420,965 | ) | $ | (738,026 | ) | $ | (627,638 | ) | $ | (694,253 | ) | |||||
Distributed income (loss) from equity investees | 11,084 | 18,527 | 20,122 | 19,994 | 1,228 | |||||||||||||||
Fixed charges | 1,919,554 | 1,872,749 | 1,948,406 | 2,053,888 | 2,151,381 | |||||||||||||||
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Total earnings | $ | 1,302,103 | $ | 1,470,311 | $ | 1,230,502 | $ | 1,446,244 | $ | 1,446,244 | ||||||||||
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Computation of fixed charges: | ||||||||||||||||||||
Interest expense | 1,533,341 | 1,466,246 | 1,549,023 | 1,649,451 | 1,741,596 | |||||||||||||||
Portion of rent expense representative of interest(1) | 386,213 | 406,503 | 399,383 | 404,437 | 409,785 | |||||||||||||||
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Total fixed charges | $ | 1,919,554 | $ | 1,872,749 | $ | 1,948,406 | $ | 2,053,888 | $ | 2,151,381 | ||||||||||
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Ratio of earnings to fixed charges(2) | 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, 2014, 2013, 2012, 2011 and 2010, earnings available for fixed charges were inadequate to cover fixed charges by $693.0 million, $607.6 million, $717.9 million, $402.4 million, $617.5 million and $4,500.8 million, respectively. |