Exhibit 12
THE MCCLATCHY COMPANY
COMPUTATION OF EARNINGS TO FIXED CHARGES RATIO
(in thousands of dollars, except ratio data)
Year Ended | ||||||||||||||||||||
Dec 26, 2010 | Dec 27, 2009 | Dec 28, 2008 | Dec 30, 2007 | Dec 31, 2006 | ||||||||||||||||
Fixed Charge Computation | ||||||||||||||||||||
Interest Expenses: | ||||||||||||||||||||
Net interest expense | $ | 177,641 | $ | 127,276 | $ | 157,385 | $ | 197,997 | $ | 93,664 | ||||||||||
Plus Capitalized interest | 101 | 200 | 192 | 468 | 2,148 | |||||||||||||||
Gross interest | 177,742 | 127,476 | 157,577 | 198,465 | 95,812 | |||||||||||||||
Interest on Unrecognized Tax Benefits (1) | (1,632 | ) | (920 | ) | (9,478 | ) | (7,270 | ) | — | |||||||||||
Amortization of Debt Discount | (11,327 | ) | (7,442 | ) | (4,911 | ) | (2,352 | ) | (1,174 | ) | ||||||||||
Interest Component of Rent Expense | 5,021 | 5,501 | 6,098 | 5,679 | 5,287 | |||||||||||||||
Total Fixed Charges | $ | 169,804 | $ | 124,615 | $ | 149,286 | $ | 194,522 | $ | 99,925 | ||||||||||
Earnings Computation | ||||||||||||||||||||
Income from Continuing Operations | ||||||||||||||||||||
Before Income Taxes | $ | 38,851 | $ | 89,411 | $ | 22,085 | $ | (2,883,191 | ) | $ | 270,885 | |||||||||
(Earnings) Losses of Equity Investments | (11,752 | ) | (2,130 | ) | 14,021 | 36,899 | (4,951 | ) | ||||||||||||
Impairment Related Charge Recorded by Equity Investee (2) | 2,947 | 2,022 | 16,947 | — | — | |||||||||||||||
Interest on Unrecognized Tax Benefits | 1,632 | 920 | 9,478 | 7,270 | — | |||||||||||||||
Distributed Income of Equity Investees | 24,274 | 1,135 | 1,740 | 7,424 | 4,345 | |||||||||||||||
Add: Fixed Charges | 169,804 | 124,615 | 149,286 | 194,522 | 99,925 | |||||||||||||||
Less: Capitalized Interest | (101 | ) | (200 | ) | (192 | ) | (468 | ) | (2,148 | ) | ||||||||||
Total Earnings as Adjusted | $ | 225,655 | $ | 215,773 | $ | 213,365 | $ | (2,637,544 | ) | $ | 368,056 | |||||||||
Ratio Of Earnings to Fixed Charges (3) | 1.33 | 1.73 | 1.43 | — | 3.68 |
(1) | The Company began recording the interest on unrecognized tax benefits in interest expense in fiscal 2007 when it adopted FIN 48. |
(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. |
(3) | Earnings were inadequate to cover fixed charges by $2.8 billion for the year ended December 30, 2007, as a result of non-cash charges of $3.0 billion. |