EX-12 2 c91851exv12.htm EXHIBIT 12 Exhibit 12
Exhibit 12
Belo Corp.
Computation of Ratio of Earnings to Fixed Charges
(Dollars in thousands)
                                                         
    Nine months ended        
    September 30,     Year ended December 31,  
    2009     2008     2008     2007     2006     2005     2004  
Earnings:
                                                       
Earnings before income taxes and the cumulative effect of accounting changes
  $ (202,817 )   $ 79,744     $ (521,212 )   $ 117,628     $ 145,717     $ 107,045     $ 144,928  
Add: Total fixed charges
    47,107       67,456       85,864       97,544       99,736       93,663       92,714  
Less: Interest capitalized
    108             53       902       1,666       167       163  
 
                                         
Adjusted earnings
  $ (155,818 )   $ 147,200     $ (435,401 )   $ 214,270     $ 243,787     $ 200,541     $ 237,479  
 
                                         
 
                                                       
Fixed Charges:
                                                       
Interest
  $ 45,566     $ 65,427     $ 83,146     $ 95,395     $ 97,319     $ 91,171     $ 90,327  
Portion of rental expense representative of the interest factor (1)
    1,541       2,029       2,718       2,149       2,417       2,492       2,387  
 
                                         
Total fixed charges
  $ 47,107     $ 67,456     $ 85,864     $ 97,544     $ 99,736     $ 93,663     $ 92,714  
 
                                         
 
                                                       
Ratio of Earnings to Fixed Charges
    (2)     2.18 x     (3)     2.20 x     2.44 x     2.14 x     2.56 x
 
                                         
 
     
(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 impairment of $242,144, which causes the ratio to be deficient. Excluding the non-cash charge, the adjusted earnings would be $86,326 and the ratio of earnings to fixed charges would be 1.83. Including the non-cash charge, the amount of the deficiency, as defined, is $202,925.
 
(3)   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.