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| 8-K - FORM 8-K - WARNER MEDIA, LLC | d302346d8k.htm |
EXHIBIT 12.1
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions)
| Nine Months Ended September 30, 2016 |
Year Ended December 31,
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| 2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||
| Earnings(1): |
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| Net Income from continuing operations before income taxes, discontinued operations and cumulative effect of accounting change |
$ | 4,844 | $ | 5,527 | $ | 4,769 | $ | 5,008 | $ | 4,138 | $ | 3,892 | ||||||||||||||||||||||||
| Interest expense(2)(3)(4) |
1,069 | 1,395 | 1,358 | 1,287 | 1,363 | 1,324 | ||||||||||||||||||||||||||||||
| Amortization of capitalized interest |
2 | - | - | - | - | - | ||||||||||||||||||||||||||||||
| Portion of rents representative of an interest factor(5) |
84 | 133 | 151 | 147 | 164 | 148 | ||||||||||||||||||||||||||||||
| Adjustment for equity earnings or losses of investee companies that are 50% or less owned on a voting basis, net of cash distributions |
57 | 27 | 77 | 224 | 184 | 92 | ||||||||||||||||||||||||||||||
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| Total earnings |
$ | 6,056 | $ | 7,082 | $ | 6,355 | $ | 6,666 | $ | 5,849 | $ | 5,456 | ||||||||||||||||||||||||
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| Fixed Charges(1): |
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| Interest expense(2)(3)(4) |
$ | 1,069 | $ | 1,395 | $ | 1,358 | $ | 1,287 | $ | 1,363 | $ | 1,324 | ||||||||||||||||||||||||
| Capitalized interest |
22 | 10 | 6 | 6 | 5 | 4 | ||||||||||||||||||||||||||||||
| Portion of rents representative of an interest factor(5) |
84 | 133 | 151 | 147 | 164 | 148 | ||||||||||||||||||||||||||||||
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| Total fixed charges |
$ | 1,175 | $ | 1,538 | $ | 1,515 | $ | 1,440 | $ | 1,532 | $ | 1,476 | ||||||||||||||||||||||||
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| Ratio of earnings to fixed charges |
5.2 | x | 4.6 | x | 4.2 | x | 4.6 | x | 3.8 | x | 3.7 | x | ||||||||||||||||||||||||
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| (1) | Earnings and fixed charges include 100% of amounts related to unconsolidated subsidiaries for which the Company holds more than 50% of the voting interests. |
| (2) | Interest expense excludes accrued interest on uncertain tax positions that is included in income tax expense. |
| (3) | For the nine months ended September 30, 2016 and the year ended December 31, 2015, 2014, 2013, 2012 and 2011, amounts include $0 million, $0 million, $1 million, $2 million, $2 million and $2 million, respectively, related to discontinued operations. |
| (4) | For the nine months ended September 30, 2016 and the year ended December 31, 2015 and 2014, amounts include $21 million, $10 million, and $1 million, respectively, of interest charges related to guaranteed debt of an equity method investee with a net loss. |
| (5) | For the nine months ended September 30, 2016 and the year ended December 31, 2015, 2014, 2013, 2012 and 2011, amounts include $0 million, $0 million, $15 million, $35 million, $36 million and $38 million, respectively, related to discontinued operations. |