EX-12 2 d68713exv12.htm EX-12 exv12
Exhibit 12
Belo Corp.
Computation of Ratio of Earnings to Fixed Charges
(Dollars in thousands)
                                         
    2004     2005     2006     2007     2008  
Earnings:
                                       
Earnings before income taxes and the cumulative effect of accounting changes
  $ 27,153     $ 107,045     $ 145,717     $ 117,628     $ (521,212 )
Add: Total fixed charges
    92,714       93,663       99,736       97,544       85,864  
Less: Interest capitalized
  $ 163     $ 167       1,666       902       53  
           
Adjusted earnings
  $ 119,704     $ 200,541     $ 243,787     $ 214,270     $ (435,401 )
                 
 
Fixed Charges:
                                       
Interest
  $ 90,327     $ 91,171     $ 97,319     $ 95,395     $ 83,146  
Portion of rental expense representative of the interest factor (1)
    2,387       2,492       2,417       2,149       2,718  
                                             
Total fixed charges
  $ 92,714     $ 93,663     $ 99,736     $ 97,544     $ 85,864  
                                     
Ratio of Earnings to Fixed Charges
    1.29 x     2.14 x     2.44 x     2.20 x     (2)
                                     
 
(1)   For purposes of calculating fixed charges, an interest factor of one third was applied to total rent expense for the period indicated.
 
(2)   For purposes of calculating the ratio of earnings to fixed charges, adjusted earnings includes a non-cash charge for intangible asset and goodwill impairment of $662,151, which causes the ratio to be deficient. Excluding the non-cash charge, the adjusted earnings would be $226,750 and the ratio of earnings to fixed charges would be 2.64. Including the non-cash charge, the amount of the deficiency, as defined, is $521,265.