MCCLATCHY CO - FORM 10-K - EX-12 - COMPUTATION OF EARNINGS TO FIXED CHARGES - March 4, 2011

Attached files

file filename
10-K - FORM 10-K - MCCLATCHY COd10k.htm
EX-23 - CONSENT OF DELOITTE & TOUCHE LLP - MCCLATCHY COdex23.htm
EX-21 - SUBSIDIARIES OF THE COMPANY - MCCLATCHY COdex21.htm
EX-32.1 - CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER OF PURSUANT TO SECTION 1350 - MCCLATCHY COdex321.htm
EX-31.2 - CERTIFICATION OF THE CHIEF FINANCIAL OFFICER PURSUANT TO RULE 13A-14(A) - MCCLATCHY COdex312.htm
EX-31.1 - CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER PURSUANT TO RULE 13A-14(A) - MCCLATCHY COdex311.htm
EX-32.2 - CERTIFICATION OF THE CHIEF FINANCIAL OFFICER OF PURSUANT TO SECTION 1350 - MCCLATCHY COdex322.htm

Exhibit 12

 

THE MCCLATCHY COMPANY

COMPUTATION OF EARNINGS TO FIXED CHARGES RATIO

(in thousands of dollars, except ratio data)

 

     Year Ended
  
     Dec 26,
2010
     Dec 27,
2009
     Dec 28,
2008
     Dec 30,
2007
     Dec 31,
2006
  

Fixed Charge Computation

                                         

Interest Expenses:

                                         

Net interest expense

    $ 177,641      $ 127,276      $ 157,385      $ 197,997      $ 93,664   

Plus Capitalized interest

      101        200        192        468        2,148   
    
 
 
 
 

Gross interest

      177,742        127,476        157,577        198,465        95,812   

Interest on Unrecognized Tax Benefits (1)

      (1,632 )      (920 )      (9,478 )      (7,270 )      —     

Amortization of Debt Discount

      (11,327 )      (7,442 )      (4,911 )      (2,352 )      (1,174 ) 

Interest Component of Rent Expense

      5,021        5,501        6,098        5,679        5,287   
    
 
 
 
 

Total Fixed Charges

    $ 169,804      $ 124,615      $ 149,286      $ 194,522      $ 99,925   
    
 
 
 
 

Earnings Computation

                                         

Income from Continuing Operations

                                         

Before Income Taxes

    $ 38,851      $ 89,411      $ 22,085      $ (2,883,191 )    $ 270,885   

(Earnings) Losses of Equity Investments

      (11,752 )      (2,130 )      14,021        36,899        (4,951 ) 

Impairment Related Charge Recorded by Equity Investee (2)

      2,947        2,022        16,947        —          —     

Interest on Unrecognized Tax Benefits

      1,632        920        9,478        7,270        —     

Distributed Income of Equity Investees

      24,274        1,135        1,740        7,424        4,345   

Add: Fixed Charges

      169,804        124,615        149,286        194,522        99,925   

Less: Capitalized Interest

      (101 )      (200 )      (192 )      (468 )      (2,148 ) 
    
 
 
 
 

Total Earnings as Adjusted

    $ 225,655      $ 215,773      $ 213,365      $ (2,637,544 )    $ 368,056   
    
 
 
 
 

Ratio Of Earnings to Fixed Charges (3)

      1.33        1.73        1.43        —          3.68   

 

(1) The Company began recording the interest on unrecognized tax benefits in interest expense in fiscal 2007 when it adopted FIN 48.
(2) Reflects the Company’s portion of loss related to an impairment and recorded in “Write-down of investments and land held for sale” in the Consolidated Statement of Income.
(3) Earnings were inadequate to cover fixed charges by $2.8 billion for the year ended December 30, 2007, as a result of non-cash charges of $3.0 billion.

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