| For the | ||||||||||||||||||||||||
| Three | ||||||||||||||||||||||||
| Months | ||||||||||||||||||||||||
| Ended | ||||||||||||||||||||||||
| March | ||||||||||||||||||||||||
| 31, | For the Year Ended December 31, | |||||||||||||||||||||||
| 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | |||||||||||||||||||
| (recast)(2) | ||||||||||||||||||||||||
| Earnings: | ||||||||||||||||||||||||
| Net income from continuing operations | $ | 123 | $ | 402 | $ | 86 | $ | 52 | $ | 25 | $ | 51 | ||||||||||||
| Add: | ||||||||||||||||||||||||
| Provision for income taxes | 70 | 352 | 56 | 41 | 47 | 33 | ||||||||||||||||||
| (Earnings) loss of equity investees | (1 | ) | 61 | (142 | ) | (104 | ) | (80 | ) | (84 | ) | |||||||||||||
| Distributions of income from equity investees | 1 | 4 | — | — | — | — | ||||||||||||||||||
| Total interest expense | 57 | 258 | — | — | — | — | ||||||||||||||||||
| Portion of rents representative of the interest factor | 10 | 47 | 11 | 10 | 11 | 9 | ||||||||||||||||||
| Earnings (Loss) as adjusted | $ | 260 | $ | 1,124 | $ | 11 | $ | (1 | ) | $ | 3 | $ | 9 | |||||||||||
| Fixed charges: | ||||||||||||||||||||||||
| Total interest expense | $ | 57 | $ | 258 | $ | — | $ | — | $ | — | $ | — | ||||||||||||
| Portion of rents representative of the interest factor | 10 | 47 | 11 | 10 | 11 | 9 | ||||||||||||||||||
| Total fixed charges | $ | 67 | $ | 305 | $ | 11 | $ | 10 | $ | 11 | $ | 9 | ||||||||||||
| Preferred stock dividends | — | — | — | — | — | — | ||||||||||||||||||
| Total combined fixed charges and preferred stock dividends | $ | 67 | $ | 305 | $ | 11 | $ | 10 | $ | 11 | $ | 9 | ||||||||||||
| Ratio of earnings (loss) to fixed charges | 3.9 | x | 3.7 | x | 1.0 | x | — | — | 1.0 | x | ||||||||||||||
| Ratio of earnings (loss) to combined fixed charges and preferred stock dividends | 3.9 | x | 3.7 | x | 1.0 | x | — | — | 1.0 | x | ||||||||||||||
| Deficiency | $ | 11 | $ | 8 | ||||||||||||||||||||
| (1) | The results for the years prior to 2008 reflect only the results of our predecessor, Discovery Holding Company. | |
| (2) | The 2008 results have been recast to reflect the adoption of Financial Accounting Standards Board Statement No. 160, Non-controlling Interests in Consolidated Financial Statements, an Amendment of ARB No. 51 (“FAS 160”). The adoption of FAS 160 did not impact the financial information prior to 2008 as there were no non-controlling interests in DHC prior to the Newhouse Transaction. For more information, please see our Current Report on Form 8-K filed on June 16, 2009. |
