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EXHIBIT 12
TIME WARNER COMPANIES, INC.
RATIO OF EARNINGS TO FIXED CHARGES
(IN MILLIONS, EXCEPT RATIOS)
HISTORICAL
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SIX MONTHS YEARS ENDED DECEMBER 31,
ENDED ---------------------------------------------------
JUNE 30, PRO
------------- FORMA
1997 1996 1996(A) 1996 1995 1994 1993 1992
------ ---- ------ ------ ------ ------ ------ ------
Earnings:
Net income (loss) before income
taxes and extraordinary
items....................... $ 293 $(80) $ 23 $ (15) $ 2 $ 89 $ 81 $ 320
Interest expense............... 465 471 870 908 877 769 698 729
Amortization of capitalized
interest.................... 1 1 2 2 2 2 -- 19
Portion of rents representative
of an interest factor ...... 27 29 55 55 57 52 54 85
Preferred stock dividend
requirements of
majority-owned
subsidiaries................ 36 36 72 72 11 -- -- --
Adjustment for partially owned
subsidiaries and 50% owned
companies................... 462 395 801 801 691 665 663 97
Undistributed losses of less
than 50% owned companies.... 3 30 50 50 117 82 47 56
------ ---- ------ ------ ------ ------ ------ ------
Total earnings......... $1,287 $882 $1,873 $1,873 $1,757 $1,659 $1,543 $1,306
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Fixed Charges:
Interest expense............... $ 465 $471 $ 870 $ 908 $ 877 $ 769 $ 698 $ 729
Capitalized interest........... -- 2 1 1 4 2 -- 15
Portion of rents representative
of an interest factor....... 27 29 55 55 57 52 54 85
Preferred stock dividend
requirements of
majority-owned
subsidiaries................ 36 36 72 72 11 -- -- --
Adjustment for partially owned
subsidiaries and 50% owned
companies................... 301 304 607 607 697 668 664 81
------ ---- ------ ------ ------ ------ ------ ------
Total fixed charges.... $ 829 $842 $1,605 $1,643 $1,646 $1,491 $1,416 $ 910
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Ratio of earnings to fixed
charges........................ 1.6x 1.0x 1.2x 1.1x 1.1x 1.1x 1.1x 1.4x
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(a) The pro forma ratio of earnings to fixed charges for TWC for the year ended
December 31, 1996 gives effect to the Preferred Stock Refinancing, as
defined elsewhere herein, and certain other debt refinancings as if such
transactions had occurred at the beginning of 1996.