EXHIBIT 12.3
TURNER BROADCASTING SYSTEM, INC.
RATIO OF EARNINGS TO FIXED CHARGES
SIX MONTHS
ENDED THREE MONTHS
JUNE 30, YEAR ENDED ENDED
----------------------- DECEMBER 31, DECEMBER 31,
1998 1997 1997 1996
---------- ---------- ------------ ------------
(IN MILLIONS, EXCEPT RATIOS)
Earnings:
Net income (loss) before
income taxes and
extraordinary items..... $ 94 $ 61 $265 $ 42
Interest expense.......... 99 102 211 60
Amortization of
capitalized interest.... 4 10 16 5
Portion of rents
representative of an
interest factor......... 15 12 23 8
Undistributed losses of
less than 50% owned
companies............... 4 4 12 2
----- ----- ----- -----
Total earnings........ $216 $189 $527 $117
----- ----- ----- -----
----- ----- ----- -----
Fixed charges:
Interest expense.......... $ 99 $102 $211 $ 60
Capitalized interest...... -- 14 13 6
Portion of rents
representative of an
interest factor......... 15 12 23 8
----- ----- ----- -----
Total fixed charges... $114 $128 $247 $ 74
----- ----- ----- -----
----- ----- ----- -----
Ratio of earnings to fixed
charges
(deficiency in the coverage
of fixed charges by earnings
before fixed charges)(a).... 1.9x 1.5x 2.1x 1.6x
----- ----- ----- -----
----- ----- ----- -----
NINE
MONTHS
ENDED YEAR ENDED
SEPTEMBER DECEMBER 31,
30, ------------------
1996 1995 1994 1993
---- ---- ---- ----
Earnings:
Net income (loss) before
income taxes and
extraordinary items.....$(42) $173 $ 79 $121
Interest expense..........141 209 219 195
Amortization of
capitalized interest....13 11 7 --
Portion of rents
representative of an
interest factor.........23 31 30 26
Undistributed losses of
less than 50% owned
companies...............1 16 15 16
---- ---- ---- ----
Total earnings........$136 $440 $350 $358
---- ---- ---- ----
---- ---- ---- ----
Fixed charges:
Interest expense..........$141 $209 $219 $195
Capitalized interest......16 15 14 --
Portion of rents
representative of an
interest factor.........23 31 30 26
---- ---- ---- ----
Total fixed charges...$180 $255 $263 $221
---- ---- ---- ----
---- ---- ---- ----
Ratio of earnings to fixed
charges
(deficiency in the coverage
of fixed charges by earnings
before fixed charges)(a)....$(44) 1.7x 1.3x 1.6x
---- ---- ---- ----
---- ---- ---- ----
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(a) TBS became a wholly owned subsidiary of the Issuer on October 10, 1996
through a merger with a subsidiary of the Issuer in connection with the TBS
Transaction. The ratios of earnings to fixed charges of TBS for all
post-merger periods have been adjusted to reflect the Issuer's basis of
accounting. The ratios of earnings to fixed charges (or coverage
deficiencies) of TBS for all pre-merger periods are reflected at TBS's
historical cost basis of accounting. Certain reclassifications have been
made to TBS's ratios of earnings to fixed charges for pre-merger periods to
conform to the post-merger presentation.