EXHIBIT 12.1
TIME WARNER INC.
RATIO OF EARNINGS TO FIXED CHARGES
SIX MONTHS ENDED
JUNE 30,
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1998 1997
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(IN MILLIONS,
EXCEPT RATIOS)
Earnings:
Net income (loss) before
income taxes and
extraordinary items..... $ 223 $ 327
Interest expense.......... 455 534
Amortization of
capitalized interest.... 5 11
Portion of rents
representative of an
interest factor......... 46 42
Preferred stock dividend
requirements of
majority-owned
subsidiaries............ 26 36
Adjustment for partially
owned subsidiaries and
50% owned companies..... 486 462
Undistributed losses of
less than 50% owned
companies............... (4 ) 7
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Total earnings........ $1,237 $1,419
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Fixed charges:
Interest expense.......... $ 455 $ 534
Capitalized interest...... -- 15
Portion of rents
representative of an
interest factor......... 46 42
Preferred stock dividend
requirements of
majority-owned
subsidiaries............ 26 36
Adjustment for partially
owned subsidiaries and
50% owned companies..... 337 301
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Total fixed charges... $ 864 $ 928
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Ratio of earnings to fixed
charges..................... 1.4 x 1.5x
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YEAR ENDED DECEMBER 31,
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HISTORICAL
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1997 1996 1995 1994 1993
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Earnings:
Net income (loss) before
income taxes and
extraordinary items.....$ 832 $ 4 $ 2 $ 89 $ 81
Interest expense.......... 1,049 968 877 769 698
Amortization of
capitalized interest.... 18 6 2 2 --
Portion of rents
representative of an
interest factor......... 78 63 57 52 54
Preferred stock dividend
requirements of
majority-owned
subsidiaries............ 72 72 11 -- --
Adjustment for partially
owned subsidiaries and
50% owned companies..... 938 801 691 665 663
Undistributed losses of
less than 50% owned
companies............... 4 52 117 82 47
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Total earnings........$ 2,991 $1,966 $1,757 $1,659 $1,543
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Fixed charges:
Interest expense..........$ 1,049 $ 968 $ 877 $ 769 $ 698
Capitalized interest...... 15 7 4 2 --
Portion of rents
representative of an
interest factor......... 78 63 57 52 54
Preferred stock dividend
requirements of
majority-owned
subsidiaries............ 72 72 11 -- --
Adjustment for partially
owned subsidiaries and
50% owned companies..... 622 607 697 668 664
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Total fixed charges...$ 1,836 $1,717 $1,646 $1,491 $1,416
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Ratio of earnings to fixed
charges..................... 1.6x 1.1x 1.1x 1.1x 1.1x
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