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 27, |
| December 28, |
| December 29, |
| December 30, |
| December 25, |
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| 2015 |
| 2014 |
| 2013 |
| 2012 |
| 2011 |
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Fixed Charge Computation |
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Interest expenses: |
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Net interest expense | $ | 85,973 |
| $ | 127,503 |
| $ | 135,381 |
| $ | 151,334 |
| $ | 165,434 |
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Plus: capitalized interest |
| 100 |
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| 434 |
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| 798 |
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| 748 |
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| 193 |
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Gross interest |
| 86,073 |
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| 127,937 |
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| 136,179 |
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| 152,082 |
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| 165,627 |
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Interest on unrecognized tax benefits |
| 293 |
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| (131) |
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| 735 |
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| 11,689 |
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| 5,960 |
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Amortization of debt discount |
| (3,550) |
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| (6,063) |
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| (6,673) |
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| (9,821) |
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| (11,092) |
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Interest component of rent expense |
| 4,319 |
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| 4,859 |
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| 4,585 |
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| 5,666 |
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| 4,509 |
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Total fixed charges |
| 87,135 |
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| 126,602 |
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| 134,826 |
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| 159,616 |
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| 165,004 |
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Earnings Computation |
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Income (loss) from continuing operations |
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before income taxes (1) |
| (311,959) |
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| 607,207 |
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| 28,103 |
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| (27,691) |
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| 56,463 |
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Earnings of equity investments |
| (10,086) |
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| (19,084) |
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| (42,651) |
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| (31,935) |
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| (27,762) |
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Impairment related charge recorded by equity investee (2) |
| 7,500 |
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| — |
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| — |
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| — |
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| — |
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Interest on unrecognized tax benefits |
| (293) |
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| 131 |
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| (735) |
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| (735) |
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| (11,689) |
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Distributed income of equity investees (3) |
| 14,960 |
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| 162,329 |
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| 42,436 |
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| 38,600 |
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| 31,625 |
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Add: fixed charges |
| 87,135 |
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| 126,602 |
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| 134,826 |
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| 134,826 |
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| 159,616 |
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Less: capitalized interest |
| (100) |
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| (434) |
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| (798) |
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| (798) |
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| (748) |
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Total earnings (loss) as adjusted | $ | (212,843) |
| $ | 876,751 |
| $ | 161,181 |
| $ | 112,266 |
| $ | 207,505 |
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Ratio Of Earnings to Fixed Charges (4) |
| — |
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| 6.93 |
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| 1.20 |
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| 0.70 |
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| 1.26 |
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(1) | The income from continuing operations before taxes in 2015 includes non-cash impairment charges of $304.8 million for goodwill and intangibles, and 2014 includes a gain on sale of our equity investments of $561.0 million. |
(2) | Reflects the Company's portion of loss related to an impairment and it is recorded in "Equity income in unconsolidated companies, net" in the Consolidated Statements of Operations. |
(3) | The distributed income of equity investees in 2014 includes the Company's portion (approximately $147 million) of Classified Ventures LLP's sale of the Apartments.com business. |
(4) | Earnings were inadequate to cover fixed charges by $214 million for the year ended December 27, 2015, as a result of non-cash charges of $304.8 million. |