EXHIBIT 12.2
TIME WARNER
RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
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
------------ ------------ ---- ---- ------ ------ -------- ------
(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
----- ------ ---- ---- ------ ------ -------- ------
Total earnings............ $428 $1,570 $405 $360 $1,659 $1,543 $1,309 $1,306
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Combined Fixed Charges and
Preferred Stock Dividends:
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
Pretax income necessary to
cover preferred stock
dividend requirements....... 37 136 5 5 20 218 905 905
----- ------ ---- ---- ------ ------ -------- ------
Total combined fixed
charges and preferred
stock dividends......... $483 $1,779 $408 $359 $1,511 $1,634 $1,815 $1,815
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Ratio of earnings to combined
fixed charges and preferred
stock dividend requirements
(deficiency in the coverage of
combined fixed charges and
preferred stock dividends by
earnings before fixed charges
and preferred stock
dividends)...................... $(55) $ (209) $ (3) 1.0x 1.1x $ (91) $ (506) $ (509)
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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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Combined Fixed Charges and
Preferred Stock Dividends:
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
Pretax income necessary to
cover preferred stock
dividend requirements....... 1,382 1,234
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Total combined fixed
charges and preferred
stock dividends......... $ 2,434 $ 2,456
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Ratio of earnings to combined
fixed charges and preferred
stock dividend requirements
(deficiency in the coverage of
combined fixed charges and
preferred stock dividends by
earnings before fixed charges
and preferred stock
dividends)...................... $(1,240) $(1,335)
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