EXHIBIT 12.1
NIELSEN MEDIA RESEARCH. INC.
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
(DOLLAR AMOUNTS IN MILLIONS)
THREE MONTHS ENDED MARCH 31,
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1999(A) 1999 1998
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(PRO FORMA)
Pre-tax income from continuing operations .......................... $21.569 $22.169 $24.502
Fixed charges: Interest expense and amortization of debt
discount and premium on all indebtedness .......................... 3.896 3.296 0.000
Rentals:
Buildings ......................................................... 0.886 0.886 0.791
Autos ............................................................. 0.242 0.242 0.187
Office and other equipment ........................................ 0.367 0.367 0.167
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Total fixed charges ................................................ 5.391 4.791 1.145
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Earnings before income taxes and fixed charges ..................... 26.960 $26.960 $25.647
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Ratio of earnings to fixed charges (B) ............................. 5.001 5.627 22.399
YEAR ENDED DECEMBER 31,
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1998(A) 1998 1997 1996 1995 1994
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(PRO FORMA)
Pre-tax income from continuing
operations ....................................... $84.031 $94.231 $90.261 $81.961 $69.568 $51.923
Fixed charges: Interest expense and
amortization of debt discount
and premium on all indebtedness .................. 18.356 8.156 0.000 0.000 0.000 0.000
Rentals:
Buildings ........................................ 3.272 3.272 2.952 2.944 2.976 2.930
Autos ............................................ 0.907 0.907 0.826 0.596 0.527 0.477
Office and other equipment ....................... 0.497 0.497 0.681 0.643 0.865 0.899
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Total fixed charges ............................... 23.032 12.832 4.459 4.183 4.368 4.306
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Earnings before income taxes
and fixed charges ................................ 107.063 107.063 $94.720 $86.144 $73.936 $56.229
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Ratio of earnings to fixed charges (B) ............ 4.648 8.343 21.242 20.594 16.927 13.058
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(A) Pro forma interest expense reflects (i) the impact of interest expense for
the six months ended June 30, related to $300 million of debt at an assumed
weighted average annual interest rate of 6.8% as if such borrowing was made
on the first day of such period, and (ii) actual interest expense incurred
for the six months ended December 31, 1998 on a weighted average balance of
$275 million and actual interest expense for the three months ended March
31, 1999 on a weighted average balance of $237.5 million, in each case of
clause (ii), as adjusted for the pro forma effect of the increase in
interest relating to the issuance of the Notes and the borrowings under the
Three-Year tranche of the Revolving Credit Facility as if such issuance and
borrowings had occurred on the first day of each such period.
(B) For the purpose of determining the ratio of earnings to fixed charges,
earnings include pre-tax income plus fixed charges. Fixed charges consist
of interest on all indebtedness plus that portion of operating lease
rentals representative of the interest factor (deemed to be one-third of
operating lease rentals). The Company's historical statements do not
reflect the $300 million of indebtedness incurred in connection with the
Distribution and, accordingly, the historical ratios of earnings to fixed
charges do not reflect any interest for this indebtedness. Actual interest
expense incurred (other than in the pro forma column) is reflected for the
six months ended December 31, 1998 and the three months ended March 31,
1999.