EXHIBIT 12
DISCOVERY COMMUNICATIONS, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND
RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS(1)
(unaudited; in millions, except ratio amounts)
| Years Ended December 31, | |||||||||||||||||||
| 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||
Earnings: | |||||||||||||||||||
Net income from continuing operations | $ | 559 | $ | 402 | $ | 86 | $ | 52 | $ | 25 | |||||||||
Add: | |||||||||||||||||||
Provision for income taxes | 472 | 352 | 56 | 41 | 47 | ||||||||||||||
(Earnings) loss of equity investees | (8 | ) | 61 | (142 | ) | (104 | ) | (80 | ) | ||||||||||
Distributions of income from equity investees | 4 | 4 | — | — | — | ||||||||||||||
Total interest expense | 250 | 258 | — | — | — | ||||||||||||||
Portion of rents representative of the interest factor | 28 | 47 | 11 | 10 | 11 | ||||||||||||||
Earnings (loss), as adjusted | $ | 1,305 | $ | 1,124 | $ | 11 | $ | (1 | ) | $ | 3 | ||||||||
Fixed charges: | |||||||||||||||||||
Total interest expense | $ | 250 | $ | 258 | $ | — | $ | — | $ | — | |||||||||
Portion of rents representative of the interest factor | 28 | 47 | 11 | 10 | 11 | ||||||||||||||
Total fixed charges | $ | 278 | $ | 305 | $ | 11 | $ | 10 | $ | 11 | |||||||||
Preferred stock dividends | 15 | — | — | — | — | ||||||||||||||
Total combined fixed charges and preferred stock dividends | $ | 293 | $ | 305 | $ | 11 | $ | 10 | $ | 11 | |||||||||
Ratio of earnings (loss) to fixed charges | 4.7x | 3.7x | 1.0x | — | — | ||||||||||||||
Ratio of earnings (loss) to combined fixed charges and preferred stock dividends | 4.5x | 3.7x | 1.0x | — | — | ||||||||||||||
Deficiency | $ | 11 | $ | 8 | |||||||||||||||
| (1) | The results for the years prior to 2008 reflect only the results of our predecessor, Discovery Holding Company. |
