Paramount Global (PARA) 10-Q 2003 Q3 Quarterly report

Exhibit 12

VIACOM INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND
RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED STOCK DIVIDEND REQUIREMENTS
(In millions except ratios)

		Nine Months Ended September 30,				Year Ended December 31,
		2003		2002		2002		2001		2000		1999			1998
Earnings (loss) before income taxes		$	3,118.5	$	2,680.4	$	3,734.2	$	776.3	$	560.6	$	780.0		$	10.7
Add:
	Share in income of fifty-percent-owned affiliates and distributed income of affiliated companies		18.1		11.3		13.9		9.6		32.5		(49.0	)		(51.5	)
	Interest expense, net of capitalized interest		602.4		652.6		860.4		976.3		842.5		461.0			631.2
	Capitalized interest amortized		—		—		—		—		2.2		5.7			11.5
	1/3 of rental expense		313.5		282.7		335.5		348.8		298.2		213.8			186.8
Total Earnings		$	4,052.5	$	3,627.0	$	4,944.0	$	2,111.0	$	1,736.0	$	1,411.5		$	788.7
Fixed charges:
	Interest expense, net of capitalized interest	$	602.4	$	652.6	$	860.4	$	976.3	$	842.5	$	461.0		$	631.2
	1/3 of rental expense		313.5		282.7		335.5		348.8		298.2		213.8			186.8
Total fixed charges		$	915.9	$	935.3	$	1,195.9	$	1,325.1	$	1,140.7	$	674.8		$	818.0
Preferred Stock dividend requirements			—		—		—		—		—		0.8			118.2
Total fixed charges and Preferred Stock dividend requirements		$	915.9	$	935.3	$	1,195.9	$	1,325.1	$	1,140.7	$	675.6		$	936.2
Ratio of earnings to fixed charges			4.4x		3.9x		4.1x		1.6x		1.5x		2.1x			Note a
Ratio of earnings to combined fixed charges and Preferred Stock dividend requirements			4.4x		3.9x		4.1x		1.6x		1.5x		2.1x			Note b

Note:

(a)

Earnings are inadequate to cover fixed charges. The dollar amount of the cover deficiency was $29.3.

(b)

Earnings are inadequate to cover fixed charges and preferred stock dividend requirements. The dollar amount of the cover deficiency was $147.5.