Exhibit 12.1
Time Warner Inc.
Computation of Ratio of Earnings to Fixed Charges and Ratio of Earnings to Combined Fixed Charges and Preferred Dividend Requirements
($s in millions)
Computation of Ratio of Earnings to Fixed Charges and Ratio of Earnings to Combined Fixed Charges and Preferred Dividend Requirements
($s in millions)
Nine Months | ||||||||||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||||||||||
September 30, | Year Ended December 31, | |||||||||||||||||||||||||||||||
2006 | 2005 | 2004 | 2003 | 2002 | 2001 | |||||||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||||||||||
Net Income (Loss) before income taxes, discontinued operations and cumulative effect of accounting change | $ | 4,947 | $ | 3,599 | $ | 4,290 | $ | 3,727 | $ | (42,281 | ) | $ | (7,557 | ) | ||||||||||||||||||
Interest expense | 1,354 | 1,622 | 1,754 | 1,926 | 1,872 | 1,505 | ||||||||||||||||||||||||||
Amortization of capitalized interest | 3 | 3 | 3 | 3 | 3 | 5 | ||||||||||||||||||||||||||
Portion of rents representative of an interest factor | 167 | 207 | 199 | 248 | 300 | 323 | ||||||||||||||||||||||||||
Preferred stock dividend requirements of majority-owned subsidiaries | — | — | — | — | — | — | ||||||||||||||||||||||||||
Adjustment for partially owned subsidiaries and 50% owned companies | 327 | 330 | 274 | 224 | 343 | 126 | ||||||||||||||||||||||||||
Undistributed losses (earnings) of less than 50% owned companies | (34 | ) | (15 | ) | 19 | 152 | 363 | 884 | ||||||||||||||||||||||||
Total earnings | $ | 6,764 | $ | 5,746 | $ | 6,539 | $ | 6,280 | $ | (39,400 | ) | $ | (4,714 | ) | ||||||||||||||||||
Fixed Charges: | ||||||||||||||||||||||||||||||||
Interest expense | $ | 1,354 | $ | 1,622 | $ | 1,754 | $ | 1,926 | $ | 1,872 | $ | 1,505 | ||||||||||||||||||||
Capitalized interest | 11 | 10 | 2 | 1 | 2 | 4 | ||||||||||||||||||||||||||
Portion of rents representative of an interest factor | 167 | 207 | 199 | 248 | 300 | 323 | ||||||||||||||||||||||||||
Preferred stock dividend requirements of majority-owned subsidiaries | — | — | — | — | — | — | ||||||||||||||||||||||||||
Adjustment for partially owned subsidiaries and 50% owned companies | 62 | 87 | 72 | 69 | 80 | 110 | ||||||||||||||||||||||||||
Total fixed charges | $ | 1,594 | $ | 1,926 | $ | 2,027 | $ | 2,244 | $ | 2,254 | $ | 1,942 | ||||||||||||||||||||
Pretax income necessary to cover preferred dividend requirements | ||||||||||||||||||||||||||||||||
Total combined | $ | 1,594 | �� | $ | 1,926 | $ | 2,027 | $ | 2,244 | $ | 2,254 | $ | 1,942 | |||||||||||||||||||
Ratio of earnings to fixed charges (deficiency in the coverage of fixed charges by earnings before fixed charges) | 4.2 | x | 3.0 | x | 3.2 | x | 2.8 | x | $ | (41,654 | ) | $ | (6,656 | ) | ||||||||||||||||||
Ratio of earnings to combined fixed charges and preferred dividend requirements (deficiency in the coverage of combined fixed charges and preferred dividend requirements deficiency) | 4.2 | x | 3.0 | x | 3.2 | x | 2.8 | x | $ | (41,654 | ) | $ | (6,656 | ) | ||||||||||||||||||