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)
| Year Ended December 31, | ||||||||||||||||||||
| 2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
| (recast) | (recast) | (recast) | ||||||||||||||||||
Earnings: | ||||||||||||||||||||
Net income from continuing operations | $ | 647 | $ | 570 | $ | 404 | $ | 86 | $ | 52 | ||||||||||
Add: | ||||||||||||||||||||
Provision for income taxes | 288 | 469 | 353 | 56 | 41 | |||||||||||||||
Loss (earnings) of equity investees | 57 | 24 | 65 | (142 | ) | (104 | ) | |||||||||||||
Distributions of income from equity investees | 15 | 4 | 4 | — | — | |||||||||||||||
Total interest expense | 207 | 249 | 258 | — | — | |||||||||||||||
Portion of rents representative of the interest factor | 28 | 27 | 46 | 11 | 10 | |||||||||||||||
Earnings (loss), as adjusted | $ | 1,242 | $ | 1,343 | $ | 1,130 | $ | 11 | $ | (1 | ) | |||||||||
Fixed charges: | ||||||||||||||||||||
Total interest expense | $ | 207 | $ | 249 | $ | 258 | $ | — | $ | — | ||||||||||
Portion of rents representative of the interest factor | 28 | 27 | 46 | 11 | 10 | |||||||||||||||
Total fixed charges | $ | 235 | $ | 276 | $ | 304 | $ | 11 | $ | 10 | ||||||||||
Preferred stock dividends | 1 | 15 | — | — | — | |||||||||||||||
Total combined fixed charges and preferred stock dividends | $ | 236 | $ | 291 | $ | 304 | $ | 11 | $ | 10 | ||||||||||
Ratio of earnings (loss) to fixed charges | 5.3x | 4.9x | 3.7x | 1.0x | — | |||||||||||||||
Ratio of earnings (loss) to combined fixed charges and preferred stock dividends | 5.3x | 4.6x | 3.7x | 1.0x | — | |||||||||||||||
Deficiency | $ | 11 | ||||||||||||||||||
| (1) | The results for years prior to 2008 reflect only the results of our predecessor, Discovery Holding Company. |
