Exhibit 12
The McClatchy Company
COMPUTATION OF EARNINGS TO FIXED CHARGES RATIO
(in thousands of dollars, except ratio data)
Year Ended | ||||||||||||||||||||
Dec 25, 2011 | Dec 26, 2010 | Dec 27, 2009 | Dec 28, 2008 | Dec 30, 2007 | ||||||||||||||||
Fixed Charge Computation | ||||||||||||||||||||
Interest Expenses: | ||||||||||||||||||||
Net interest expense | $ | 165,434 | $ | 177,641 | $ | 127,276 | $ | 157,385 | $ | 197,997 | ||||||||||
Plus Capitalized interest | 193 | 101 | 200 | 192 | 468 | |||||||||||||||
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Gross interest | 165,627 | 177,742 | 127,476 | 157,577 | 198,465 | |||||||||||||||
Interest on Unrecognized Tax Benefits (1) | 5,960 | (1,632 | ) | (920 | ) | (9,478 | ) | (7,270 | ) | |||||||||||
Amortization of debt discount | (11,092 | ) | (11,327 | ) | (7,442 | ) | (4,911 | ) | (2,352 | ) | ||||||||||
Interest Component of Rent Expense | 4,509 | 5,021 | 5,501 | 6,098 | 5,679 | |||||||||||||||
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Total Fixed Charges | $ | 165,004 | $ | 169,804 | $ | 124,615 | $ | 149,286 | $ | 194,522 | ||||||||||
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Earnings Computation | ||||||||||||||||||||
Income from Continuing Operations Before Income Taxes (2) | $ | 62,785 | $ | 38,701 | $ | 83,561 | $ | 22,085 | $ | (2,883,191 | ) | |||||||||
(Earnings) Losses of Equity Investments | (27,762 | ) | (11,752 | ) | (2,130 | ) | 14,021 | 36,899 | ||||||||||||
Impairment Related Charge Recorded by Equity Investee (3) | — | 2,947 | 2,022 | 16,947 | — | |||||||||||||||
Interest on Unrecognized Tax Benefits | (5,960 | ) | 1,632 | 920 | 9,478 | 7,270 | ||||||||||||||
Distributed Income of Equity Investees | 31,625 | 24,274 | 1,135 | 1,740 | 7,424 | |||||||||||||||
Add: Fixed Charges | 165,004 | 169,804 | 124,615 | 149,286 | 194,522 | |||||||||||||||
Less: Capitalized Interest | (193 | ) | (101 | ) | (200 | ) | (192 | ) | (468 | ) | ||||||||||
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Total Earnings as Adjusted | $ | 225,499 | $ | 225,505 | $ | 209,923 | $ | 213,365 | $ | (2,637,544 | ) | |||||||||
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Ratio Of Earnings to Fixed Charges (4) | 1.37 | 1.33 | 1.68 | 1.43 | — |
(1) | The Company began recording the interest on unrecognized tax benefits in interest expense in fiscal 2007 when it adopted FIN 48. |
(2) | Income from continuing operations before income taxes in 2009 and 2010 have been restated as discussed in Note 12 to the Consolidated Financial Statements filed in the Company’s Form 10-K for the year ended December 25, 2011. |
(3) | 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. |
(4) | Earnings were inadequate to cover fixed charges by $2.8 billion for the year ended December 30, 2007, as a result of non-cash impairment charges of $3.0 billion. |