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CBS CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND
RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDEND REQUIREMENTS
(Tabular dollars in millions)
| Three Months Ended March 31, | Twelve Months Ended December 31, | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2008 | 2007 | 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||
Earnings (loss) before income taxes | $ | 402.9 | $ | 419.3 | $ | 2,133.0 | $ | 2,132.7 | $ | (7,564.4 | ) | $ | (15,850.2 | ) | $ | 1,788.2 | |||||||
Add: | |||||||||||||||||||||||
Distributions from investee companies | — | 3.8 | 7.7 | 8.9 | 9.5 | 12.6 | 1.7 | ||||||||||||||||
Interest expense, net of capitalized interest | 138.5 | 139.2 | 570.1 | 564.5 | 719.6 | 693.7 | 715.0 | ||||||||||||||||
1/3 of rental expense | 47.8 | 45.6 | 193.4 | 160.9 | 137.2 | 123.8 | 95.1 | ||||||||||||||||
Total Earnings (loss) | $ | 589.2 | $ | 607.9 | $ | 2,904.2 | $ | 2,867.0 | $ | (6,698.1 | ) | $ | (15,020.1 | ) | $ | 2,600.0 | |||||||
Fixed charges: | |||||||||||||||||||||||
Interest expense, net of capitalized interest | $ | 138.5 | $ | 139.2 | $ | 570.1 | $ | 564.5 | $ | 719.6 | $ | 693.7 | $ | 715.0 | |||||||||
1/3 of rental expense | 47.8 | 45.6 | 193.4 | 160.9 | 137.2 | 123.8 | 95.1 | ||||||||||||||||
Total fixed charges | $ | 186.3 | $ | 184.8 | $ | 763.5 | $ | 725.4 | $ | 856.8 | $ | 817.5 | $ | 810.1 | |||||||||
Ratio of earnings to fixed charges | 3.2 | x | 3.3 | x | 3.8 | x | 4.0 | x | Note a | Note a | 3.2 | x | |||||||||||
Note:
(a) Earnings are inadequate to cover fixed charges due to the 2005 and 2004 non-cash impairment charges of $9.48 billion and $18.0 billion, respectively. The dollar amounts of the cover deficiencies are $7.55 billion and $15.84 billion in 2005 and 2004, respectively.
CBS CORPORATION AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDEND REQUIREMENTS (Tabular dollars in millions)