Exhibit 12.1
News Corporation
Computation of Ratio of Earnings to Fixed Charges
(in Millions, Except Ratio Amounts)
(Unaudited)
For the nine months ended March 31, | For the fiscal years ended June 30, | |||||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Income (loss) before income tax expense | $ | 2,823 | $ | 3,323 | $ | (5,539 | ) | $ | 7,321 | $ | 5,306 | $ | 4,405 | |||||||||||
Add: | ||||||||||||||||||||||||
Equity (earnings) losses from affiliates | (272 | ) | (448 | ) | 309 | (327 | ) | (1,019 | ) | (888 | ) | |||||||||||||
Dividends received from affiliates | 178 | 317 | 298 | 342 | 252 | 178 | ||||||||||||||||||
Fixed charges, excluding capitalized interest | 870 | 1,214 | 1,152 | 1,081 | 1,016 | 910 | ||||||||||||||||||
Amortization of capitalized interest | 40 | 73 | 50 | 33 | 34 | 44 | ||||||||||||||||||
Total earnings (losses) available for fixed charges | $ | 3,639 | $ | 4,479 | $ | (3,730 | ) | $ | 8,450 | $ | 5,589 | $ | 4,649 | |||||||||||
Fixed charges: | ||||||||||||||||||||||||
Interest on debt and finance lease charges | $ | 706 | $ | 991 | $ | 927 | $ | 882 | $ | 843 | $ | 792 | ||||||||||||
Capitalized interest | 30 | 44 | 55 | 44 | 24 | 28 | ||||||||||||||||||
Interest element on rental expense | 164 | 223 | 225 | 199 | 173 | 118 | ||||||||||||||||||
Total fixed charges | $ | 900 | $ | 1,258 | $ | 1,207 | $ | 1,125 | $ | 1,040 | $ | 938 | ||||||||||||
Ratio of earnings to fixed charges | 4.0 | 3.6 | ** | 7.5 | 5.4 | 5.0 | ||||||||||||||||||
** | Earnings did not cover fixed charges by $4.9 billion during the fiscal year ended June 30, 2009 due to non-cash impairment charges of $8.9 billion ($7.2 billion, net of tax). (See Note 9 to the Consolidated Financial Statements of News Corporation contained in its Current Report on Form 8-K, filed November 3, 2010.) |