EXHIBIT 12.1 TIME WARNER INC. RATIO OF EARNINGS TO FIXED CHARGES (in millions, except ratios) Years Ended December 31, --------------------------------------------- 1999(a) 1998 1997 1996 1995 ---- ---- ---- ---- ---- Earnings: Income before income taxes and extraordinary items ....... $3,500 $ 586 $ 832 $ 4 $ 2 Interest expense ......................................... 1,519 891 1,049 968 877 Amortization of capitalized interest ..................... 9 10 18 6 2 Portion of rents representative of an interest factor .... 172 94 78 63 57 Preferred stock dividend requirements of majority-owned subsidiaries .......................................... 57 52 72 72 11 Adjustment for partially owned subsidiaries and 50% owned companies ............................................. 440 960 938 801 691 Undistributed losses of less than 50% owned companies.............................................. 46 42 4 52 117 ------ ------ ------ ------ ------ Total earnings ..................................... $5,743 $2,635 $2,991 $1,966 $1,757 ====== ====== ====== ====== ====== Fixed charges: Interest expense ......................................... $1,519 $ 891 $1,049 $ 968 $ 877 Capitalized interest ..................................... 6 1 15 7 4 Portion of rents representative of an interest factor .... 172 94 78 63 57 Preferred stock dividend requirements of majority-owned subsidiaries .......................................... 57 52 72 72 11 Adjustment for partially owned subsidiaries and 50% owned companies ............................................. 86 721 622 607 697 ------ ------ ------ ------ ------ Total fixed charges ................................ $1,840 $1,759 $1,836 $1,717 $1,646 ====== ====== ====== ====== ====== Ratio of earnings to fixed charges .......................... 3.1x 1.5x 1.6x 1.1x 1.1x === === === === === - ------------------------ (a) The 1999 ratio of earnings to fixed charges reflects the consolidation of the Entertainment Group, which substantially consists of TWE, retroactive to the beginning of 1999. Because Time Warner's ratios of earnings to fixed charges for all periods presented include 100% of TWE's earnings and fixed charges, the ratios for periods prior to 1999 would not have changed as a result of such consolidation. However, the individual components as presented above are no longer comparable.