Exhibit 12
The McClatchy Company
COMPUTATION OF EARNINGS TO FIXED CHARGES RATIO
(in thousands of dollars, except ratio data)
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| Year Ended |
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| December 29, |
| December 30, |
| December 25, |
| December 26, |
| December 27, |
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| 2013 |
| 2012 |
| 2011 |
| 2010 |
| 2009 |
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Fixed Charge Computation |
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Interest expenses: |
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Net interest expense |
| $ | 135,381 |
| $ | 151,334 |
| $ | 165,434 |
| $ | 177,641 |
| $ | 127,276 |
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Plus: capitalized interest |
| 798 |
| 748 |
| 193 |
| 101 |
| 200 |
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Gross interest |
| 136,179 |
| 152,082 |
| 165,627 |
| 177,742 |
| 127,476 |
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Interest on unrecognized tax benefits |
| 735 |
| 11,689 |
| 5,960 |
| (1,632 | ) | (920 | ) | |||||
Amortization of debt discount |
| (6,673 | ) | (9,821 | ) | (11,092 | ) | (11,327 | ) | (7,442 | ) | |||||
Interest component of rent expense |
| 4,585 |
| 5,666 |
| 4,509 |
| 5,021 |
| 5,501 |
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Total fixed charges |
| $ | 134,826 |
| $ | 159,616 |
| $ | 165,004 |
| $ | 169,804 |
| $ | 124,615 |
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Earnings Computation |
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Income from continuing operations before income taxes |
| $ | 32,059 |
| $ | (21,526 | ) | $ | 62,785 |
| $ | 38,701 |
| $ | 83,561 |
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Earnings of equity investments (1) |
| (42,651 | ) | (31,935 | ) | (27,762 | ) | (11,752 | ) | (2,130 | ) | |||||
Impairment related charge recorded by equity investee (2) |
| — |
| — |
| — |
| 2,947 |
| 2,022 |
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Interest on unrecognized tax benefits |
| (735 | ) | (11,689 | ) | (5,960 | ) | 1,632 |
| 920 |
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Distributed income of equity investees |
| 42,436 |
| 38,600 |
| 31,625 |
| 24,274 |
| 1,135 |
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Add: fixed charges |
| 134,826 |
| 159,616 |
| 165,004 |
| 169,804 |
| 124,615 |
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Less: capitalized interest |
| (798 | ) | (748 | ) | (193 | ) | (101 | ) | (200 | ) | |||||
Total earnings as adjusted |
| $ | 165,137 |
| $ | 132,318 |
| $ | 225,498 |
| $ | 225,505 |
| $ | 209,923 |
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Ratio Of Earnings to Fixed Charges |
| 1.22 |
| 0.83 |
| 1.37 |
| 1.33 |
| 1.68 |
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(1) The earnings from equity investments in 2012 includes the Company’s portion (approximately $7 million) of an impairment related charge that was recorded by an equity investee.
(2) Reflects the Company’s portion of loss related to an impairment and recorded in “Write-down of investments and land held for sale” in the Consolidated Statement of Income.