EXHIBIT 12.1
TIME WARNER
RATIO OF EARNINGS TO FIXED CHARGES
(IN MILLIONS, EXCEPT RATIOS)
PRO FORMA
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SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1996 DECEMBER 31, 1995
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(1) (2) (1) (2)
COMPANY COMPANY COMPANY COMPANY
PRE-TBS(a) POST-TBS(a) PRE-TBS(a) POST-TBS(a)
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EARNINGS:
Net income (loss) before income
taxes and extraordinary item...... $ (42) $(126) $ (58) $ (98)
Interest expense.................... 433 533 871 1,089
Amortization of capitalized
interest.......................... 1 10 4 15
Portion of rents representative of
an interest factor................ 29 44 60 91
Preferred stock dividend
requirements of majority-owned
subsidiaries...................... 36 36 67 67
Adjustment for partially-owned
subsidiaries and 50%-owned
companies......................... 396 396 649 649
Undistributed losses of less than
50%-owned companies............... 30 17 117 104
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Total earnings.................. $ 883 $ 910 $1,710 $ 1,917
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FIXED CHARGES:
Interest expense.................... $ 433 $ 533 $ 871 $ 1,089
Capitalized interest................ 2 11 6 21
Portion of rents representative of
an interest factor................ 29 44 60 91
Preferred stock dividend
requirements of majority-owned
subsidiaries...................... 36 36 67 67
Adjustment for partially-owned
subsidiaries and 50%-owned
companies......................... 305 305 655 655
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Total fixed charges............. $ 805 $ 929 $1,659 $ 1,923
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Ratio of earnings to fixed charges
(deficiency in the coverage of
fixed charges by earnings before
fixed charges).................... 1.1x $ (19) 1.0x $ (6)
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HISTORICAL
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SIX MONTHS
ENDED
JUNE 30, YEARS ENDED DECEMBER 31,
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1996 1995 1995 1994 1993 1992 1991
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EARNINGS:
Net income (loss) before income
taxes and extraordinary item...... $ (80) $ 33 $ 2 $ 89 $ 81 $ 320 $ 52
Interest expense.................... 471 429 877 769 698 729 912
Amortization of capitalized
interest.......................... 1 2 2 2 -- 19 23
Portion of rents representative of
an interest factor................ 29 26 57 52 54 85 78
Preferred stock dividend
requirements of majority-owned
subsidiaries...................... 36 -- 11 -- -- -- --
Adjustment for partially-owned
subsidiaries and 50%-owned
companies......................... 396 356 691 665 663 97 73
Undistributed losses of less than
50%-owned companies............... 30 34 117 82 47 56 56
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Total earnings.................. $ 883 $880 $1,757 $1,659 $1,543 $1,306 $1,194
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FIXED CHARGES:
Interest expense.................... $ 471 $429 $ 877 $ 769 $ 698 $ 729 $ 912
Capitalized interest................ 2 2 4 2 -- 15 17
Portion of rents representative of
an interest factor................ 29 26 57 52 54 85 78
Preferred stock dividend
requirements of majority-owned
subsidiaries...................... 36 -- 11 -- -- -- --
Adjustment for partially-owned
subsidiaries and 50%-owned
companies......................... 305 359 697 668 664 81 45
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Total fixed charges............. $ 843 $816 $1,646 $1,491 $1,416 $ 910 $1,052
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Ratio of earnings to fixed charges
(deficiency in the coverage of
fixed charges by earnings before
fixed charges).................... 1.0x 1.1x 1.1x 1.1x 1.1x 1.4x 1.1x
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(a) The pro forma ratio of earnings to fixed charges of the Company for the six
months ended June 30, 1996 gives effect in column (1) to the Series K
Refinancing and the 1996 Covertible Debt Refinancing and in column (2) to
such transactions and the TBS Transaction, in each case as if the
transactions occurred at the beginning of 1995. The pro forma ratio of
earnings to fixed charges of the Company for the year ended December 31,
1995 gives effect in column (1) to the ITOCHU/Toshiba Transaction, the
Cable Transactions, the Debt Refinancings and the Asset Sale Transactions
and in column (2) to each of such transactions and the TBS Transaction, in
each case as if the transactions occurred at the beginning of such period.