Exhibit 12
Time Warner Cable Inc.
Computation of Ratio of Earnings to Fixed Charges and Ratio of Earnings
to Combined Fixed Charges and Preferred Dividend Requirements
Computation of Ratio of Earnings to Fixed Charges and Ratio of Earnings
to Combined Fixed Charges and Preferred Dividend Requirements
($ in millions)
Year Ended December 31, | ||||||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||
Earnings: | ||||||||||||||||||||
Net income (loss) before income taxes, discontinued operations and cumulative effect of accounting change | $ | (12,050 | ) | $ | 1,863 | $ | 1,556 | $ | 1,302 | $ | 1,085 | |||||||||
Interest expense | 961 | 907 | 690 | 501 | 491 | |||||||||||||||
Portion of rents representative of an interest factor | 63 | 61 | 50 | 32 | 33 | |||||||||||||||
Amortization of capitalized interest | 3 | 3 | 2 | 2 | 2 | |||||||||||||||
Preferred stock dividend requirements of majority-owned subsidiaries | — | — | — | — | — | |||||||||||||||
Adjustment for partially owned subsidiaries and 50% owned companies | (1,021 | ) | 165 | 135 | 119 | 90 | ||||||||||||||
Distributions received less earnings of less than 50% owned companies | 6 | 63 | 4 | 4 | 6 | |||||||||||||||
Total earnings | $ | (12,038 | ) | $ | 3,062 | $ | 2,437 | $ | 1,960 | $ | 1,707 | |||||||||
Fixed Charges: | ||||||||||||||||||||
Interest expense, net | $ | 961 | $ | 907 | $ | 690 | $ | 501 | $ | 491 | ||||||||||
Portion of rents representative of an interest factor | 63 | 61 | 50 | 32 | 33 | |||||||||||||||
Capitalized interest | 1 | 5 | 2 | 1 | 1 | |||||||||||||||
Preferred stock dividend requirements of majority-owned subsidiaries | — | — | — | — | — | |||||||||||||||
Adjustment for partially owned subsidiaries and 50% owned companies | — | — | 43 | 60 | 39 | |||||||||||||||
Total fixed charges | $ | 1,025 | $ | 973 | $ | 785 | $ | 594 | $ | 564 | ||||||||||
Pretax income necessary to cover preferred dividend requirements | — | — | — | — | — | |||||||||||||||
Total combined | $ | 1,025 | $ | 973 | $ | 785 | $ | 594 | $ | 564 | ||||||||||
Ratio of earnings to fixed charges (deficiency in the coverage of fixed charges by earnings before fixed charges) | $ | (13,063 | ) | 3.1 | x | 3.1 | x | 3.3 | x | 3.0 | x | |||||||||
Ratio of earnings to combined fixed charges and preferred dividend requirements (deficiency in the coverage of combined fixed charges and preferred dividend requirements deficiency) | $ | (13,063 | ) | 3.1 | x | 3.1 | x | 3.3 | x | 3.0 | x | |||||||||