EXHIBIT 12.1
TIME WARNER
RATIO OF EARNINGS TO FIXED CHARGES
HISTORICAL
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PRO FORMA
---------------------------- THREE MONTHS
THREE MONTHS YEAR ENDED YEARS ENDED DECEMBER 31,
ENDED ENDED MARCH 31, --------------------------------------
MARCH 31, DECEMBER 31, --------------- RESTATED
1995 1994 1995 1994 1994 1993 1992 1992
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(IN MILLIONS, EXCEPT RATIOS)
Earnings:
Net income (loss) before income
taxes and extraordinary
item......................... $(35) $ (152) $(15) $(19) $ 89 $ 81 $ 323 $ 320
Interest expense............... 275 983 210 182 769 698 287 729
Amortization of capitalized
interest..................... -- 2 -- -- 2 -- 1 19
Portion of rents representative
of an interest factor........ 13 52 13 13 52 54 52 85
Adjustment for partially owned
subsidiaries and 50% owned
companies.................... 158 603 180 159 665 663 590 97
Undistributed losses of less
than 50% owned companies..... 17 82 17 25 82 47 56 56
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Total earnings............. $428 $1,570 $405 $360 $1,659 $1,543 $1,309 $1,306
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Fixed Charges:
Interest expense............... $275 $ 983 $210 $182 $ 769 $ 698 $ 287 $ 729
Capitalized interest........... -- 2 -- -- 2 -- -- 15
Portion of rents representative
of an interest factor........ 13 52 13 13 52 54 52 85
Adjustment for partially owned
subsidiaries and 50% owned
companies.................... 158 606 180 159 668 664 571 81
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Total fixed charges........ $446 $1,643 $403 $354 $1,491 $1,416 $ 910 $ 910
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Ratio of earnings to fixed charges
(deficiency in the coverage of
fixed charges by earnings before
fixed charges)................... $(18) $ (73) 1.0x 1.0x 1.1x 1.1x 1.4x 1.4x
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1991 1990
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Earnings:
Net income (loss) before income
taxes and extraordinary
item......................... $ 52 $ (145)
Interest expense............... 912 1,096
Amortization of capitalized
interest..................... 23 22
Portion of rents representative
of an interest factor........ 78 74
Adjustment for partially owned
subsidiaries and 50% owned
companies.................... 73 57
Undistributed losses of less
than 50% owned companies..... 56 17
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Total earnings............. $1,194 $1,121
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Fixed Charges:
Interest expense............... $ 912 $1,096
Capitalized interest........... 17 19
Portion of rents representative
of an interest factor........ 78 74
Adjustment for partially owned
subsidiaries and 50% owned
companies.................... 45 33
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Total fixed charges........ $1,052 $1,222
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Ratio of earnings to fixed charges
(deficiency in the coverage of
fixed charges by earnings before
fixed charges)................... 1.1x $ (101)
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