Exhibit 12.1
AOL TIME WARNER INC.
RATIO OF EARNINGS TO FIXED CHARGES
Pro Forma (a)
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Three Months Nine Months
Ended Year Ended Ended Year Ended
September 30, 2000 June 30, 2000 September 30, 2000 December 31, 1999
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Earnings:
Net income (loss) before income taxes and
cumulative effect of account change $ (735) $ (1,637) $ (2,318) $ (812)
Interest expense 458 1,638 1,307 1,535
Amortization of capitalized interest 1 8 5 9
Portion of rents representative of an interest
factor 102 355 287 339
Preferred stock dividend requirements of
majority-owned subsidiaries 13 52 39 57
Adjustment for partially owned subsidiaries and
50% owned companies 67 230 174 440
Undistributed losses (earnings) of less than 50%
owned companies -- 10 1 46
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Total earnings $ (94) $ 656 $ (505) $ 1,614
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Fixed Charges:
Interest expense $ 458 $ 1,638 $ 1,307 $ 1,535
Capitalized interest 3 10 8 8
Portion of rents representative of an interest factor 102 355 287 339
Preferred stock dividend requirements of majority-
owned subsidiaries 13 52 39 57
Adjustment for partially owned subsidiaries
and 50% owned companies 29 95 80 86
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Total fixed charges $ 605 $ 2,150 $ 1,721 $ 2,025
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Pretax income necessary to cover preferred
dividend requirements 5 41 19 88
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Total combined $ 610 $ 2,191 $ 1,740 $ 2,113
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Ratio of earnings to fixed charges
(deficiency in the coverage of fixed
charges by earnings before fixed
charges) $ (699) $ (1,494) $ (2,226) $ (411)
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Ratio of earnings to combined fixed
charges and preferred dividend
requirements (deficiency in the
coverage of combined fixed charges
and preferred dividend requirements
deficiency) $ (704) $ (1,535) $ (2,245) $ (499)
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(a) AOL Time Warner's pro forma ratios are presented to give effect to the merger of America Online and Time Warner as if it
occurred at the beginning of each period. Because America Online and Time Warner have different fiscal years, and the combined
company has adopted the calendar year-end of Time Warner, pro forma ratios for AOL Time Warner are presented on two different
bases as follows: (1) a June 30 fiscal year basis, which is consistent with America Online's historical fiscal year-end, and
(2) a December 31 calendar year basis, which is consistent with Time Warner's historical fiscal year-end and that of AOL
Time Warner going forward. In addition, because America Online is the predecessor of AOL Time Warner, AOL Time Warner's
historical ratios are the same as America Online's historical ratios. For further reference see America Online's ratio
information.