Exhibit 12
CLEAR CHANNEL COMMUNICATIONS, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(unaudited)
Predecessor | Successor | |||||||||||||||||||||||||||||||
Period from January 1 through | Period from July 31 | Year ended December 31, | Nine Months ended September 30, | |||||||||||||||||||||||||||||
(dollars in millions)
| July 30, 2008 | December 31, 2008 | 2009 | 2010 | 2011 | 2012 | 2012 | 2013 | ||||||||||||||||||||||||
Computation of earnings: | ||||||||||||||||||||||||||||||||
Income (loss) before income taxes and adjustment for (income) loss from equity investees | $ | 491,809 | $ | (5,743,061) | $ | (4,521,667) | $ | (628,535) | $ | (420,965) | $ | (738,026) | $ | (405,615) | $ | (453,529) | ||||||||||||||||
Distributed income (loss) from equity investees | 29,935 | 13,143 | 20,901 | 11,084 | 18,527 | 20,122 | 17,171 | 17,442 | ||||||||||||||||||||||||
Fixed charges | 477,597 | 900,069 | 1,896,482 | 1,919,554 | 1,872,749 | 1,948,406 | 1,445,078 | 1,531,249 | ||||||||||||||||||||||||
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Total earnings | $ | 999,341 | $ | (4,829,849) | $ | (2,604,284) | $ | 1,302,103 | $ | 1,470,311 | $ | 1,302,502 | $ | 1,056,634 | $ | 1,095,162 | ||||||||||||||||
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Computation of fixed charges: | ||||||||||||||||||||||||||||||||
Interest expense | $ | 213,210 | $ | 715,768 | $ | 1,500,866 | $ | 1,533,341 | $ | 1,466,246 | $ | 1,549,023 | $ | 1,148,093 | $ | 1,231,437 | ||||||||||||||||
Portion of rent expense representative of interest (1) | 264,387 | 184,301 | 395,616 | 386,213 | 406,503 | 399,383 | 296,985 | 299,812 | ||||||||||||||||||||||||
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Total fixed charges | $ | 477,597 | $ | 900,069 | $ | 1,896,482 | $ | 1,919,554 | $ | 1,872,749 | $ | 1,948,406 | $ | 1,445,078 | $ | 1,531,249 | ||||||||||||||||
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Ratio of earnings to fixed charges(2) | 2.09 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
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(1) | Imputed interest on operating leases is estimated to be approximately one-third of rent expense. | |
(2) | For the years ended December 31, 2012, 2011, 2010, 2009 and 2008, and the nine months ended September 30, 2013 and 2012, earnings available for fixed charges were inadequate to cover fixed charges by $717.9 million, $402.4 million, $617.5 million, $4.5 billion, $5.2 billion, $436.1 million and $388.4 million, respectively. | |