Exhibit 12.1
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
| Time Warner Inc. | ||||||||||||||||||||
Ratio of Earnings to Fixed Charges ($ in millions) | ||||||||||||||||||||
2008 (1) | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||
| Earnings | ||||||||||||||||||||
| Net income (loss) before income taxes, discontinued operations and cumulative effect of accounting change | $ | (16,649) | $ | 6,387 | $ | 6,381 | $ | 3,529 | $ | 4,220 | ||||||||||
| Interest expense | 2,463 | 2,509 | 1,969 | 1,620 | 1,753 | |||||||||||||||
| Amortization of capitalized interest | 5 | 5 | 3 | 3 | 3 | |||||||||||||||
| Portion of rents representative of an interest factor | 235 | 239 | 238 | 203 | 196 | |||||||||||||||
| Adjustment for partially owned subsidiaries and 50% owned companies | (1,959) | 424 | 438 | 330 | 274 | |||||||||||||||
| Undistributed losses (earnings) of less than 50% owned companies | 31 | 63 | (64) | (15) | 16 | |||||||||||||||
| Total earnings | $ | (15,874) | $ | 9,627 | $ | 8,965 | $ | 5,670 | $ | 6,462 | ||||||||||
Fixed Charges: | ||||||||||||||||||||
| Interest expense | $ | 2,463 | $ | 2,509 | $ | 1,969 | $ | 1,620 | $ | 1,753 | ||||||||||
| Capitalized interest | 1 | 15 | 17 | 10 | 2 | |||||||||||||||
| Portion of rents representative of an interest factor | 235 | 239 | 238 | 203 | 196 | |||||||||||||||
| Adjustment for partially owned subsidiaries and 50% owned companies | 15 | 16 | 63 | 87 | 72 | |||||||||||||||
| Total fixed charges | $ | 2,714 | $ | 2,779 | $ | 2,287 | $ | 1,920 | $ | 2,023 | ||||||||||
| Ratio of earnings to fixed charges | — | 3.5x | 3.9x | 3.0x | 3.2x | |||||||||||||||
| (1) For the ratio of earnings to fixed charges to equal 1.00, earnings, as adjusted, must increase by $18.588 billion. | ||||||||||||||||||||