Attached files
| file | filename |
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| 8-K - FORM 8-K - WARNER MEDIA, LLC | d230768d8k.htm |
Exhibit 12.1
Time Warner Inc.
Ratio of Earnings to Fixed Charges
(Dollars in millions)
| Six Months Ended | Year Ended December 31, | |||||||||||||||||||||||
| June 30, 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
| Earnings: |
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| Net income (loss) from continuing operations before income taxes, discontinued operations and cumulative effect of accounting change |
$ | 1,932 | $ | 3,919 | $ | 3,237 | $ | (4,397 | ) | $ | 2,746 | $ | 3,165 | |||||||||||
| Interest expense(2)(3) |
645 | 1,277 | 1,521 | 2,499 | 2,565 | 2,019 | ||||||||||||||||||
| Amortization of capitalized interest |
1 | 1 | 2 | 3 | 2 | 1 | ||||||||||||||||||
| Portion of rents representative of an interest factor(4) |
71 | 138 | 176 | 234 | 239 | 238 | ||||||||||||||||||
| Adjustment for equity earnings or losses of investee companies, net of cash distributions |
40 | 38 | 74 | 21 | 49 | 62 | ||||||||||||||||||
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| Total earnings (loss) |
$ | 2,689 | $ | 5,373 | $ | 5,010 | $ | (1,640 | ) | $ | 5,601 | $ | 5,485 | |||||||||||
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| Fixed Charges: |
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| Interest expense(2)(3) |
$ | 645 | $ | 1,277 | $ | 1,521 | $ | 2,499 | $ | 2,565 | $ | 2,019 | ||||||||||||
| Capitalized interest(5) |
2 | 2 | 1 | 1 | 15 | 17 | ||||||||||||||||||
| Portion of rents representative of an interest factor(4) |
71 | 138 | 176 | 234 | 239 | 238 | ||||||||||||||||||
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| Total fixed charges |
$ | 718 | $ | 1,417 | $ | 1,698 | $ | 2,734 | $ | 2,819 | $ | 2,274 | ||||||||||||
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| Ratio of earnings to fixed charges |
3.7 | x | 3.8 | x | 3.0 | x | — | (1) | 2.0 | x | 2.4 | x | ||||||||||||
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| (1) | For the ratio of earnings to fixed charges to equal 1.0, earnings must increase by $4.374 billion. Net loss from continuing operations before income taxes and discontinued operations for 2008 includes $7.139 billion of noncash impairments related to goodwill and identifiable intangible assets of Time Warner’s publishing segment. |
| (2) | Earnings and fixed charges exclude accrued interest on uncertain tax positions that is included in income tax expense. |
| (3) | For the six months ended June 30, 2011, and the years ended December 31, 2010, 2009, 2008, 2007 and 2006, amounts include $0 million, $0 million, $218 million, $970 million, $916 million and $593 million, respectively, related to discontinued operations. |
| (4) | For the six months ended June 30, 2011, and the years ended December 31, 2010, 2009, 2008, 2007 and 2006, amounts include $0 million, $0 million, $29 million, $78 million, $80 million and $67 million, respectively, related to discontinued operations. |
| (5) | For the six months ended June 30, 2011, and the years ended December 31, 2010, 2009, 2008, 2007 and 2006, amounts include $0 million, $0 million, $0 million, $1 million, $5 million and $2 million, respectively, related to discontinued operations. |