EX-12 2 d53996exv12.htm STATEMENTS RE: COMPUTATION OF RATIOS exv12
 

Exhibit 12
Belo Corp.
Computation of Ratio of Earnings to Fixed Charges
(Dollars in thousands)
                                         
    For the Year Ended December 31,  
    2003     2004     2005     2006     2007  
 
                                        
Earnings:
                                        
Earnings before income taxes and the cumulative effect of accounting changes
   $ 209,460     $ 215,801     $ 206,960     $ 203,683     $ (202,375 )
Add: Total fixed charges
     98,117       94,177       95,159       101,184       98,868  
Less: Interest capitalized
     500       163       167       1,666       902  
 
                              
Adjusted earnings
   $ 307,077     $ 309,815     $ 301,952     $ 303,201     $ (104,409 )
 
                              
 
                                        
Fixed Charges:
                                        
Interest
   $ 94,110     $ 90,327     $ 91,171     $ 97,320     $ 95,396  
Portion of rental expense representative of the interest factor(1)
     4,007       3,850       3,988       3,864       3,472  
 
                              
Total fixed charges
   $ 98,117     $ 94,177     $ 95,159     $ 101,184     $ 98,868  
 
                              
 
                                        
Ratio of Earnings to Fixed Charges
     3.13 x      3.29 x      3.17 x      3.00 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)   Adjusted earnings are not sufficient to provide for fixed charges. For purposes of calculating the ratio of earnings to fixed charges, adjusted earnings includes a non-cash charge for goodwill impairment of $366,561, which causes the ratio to be deficient. Excluding the non-cash charge, the adjusted earnings would be $470,970 and the ratio of earnings to fixed charges would be 4.76. Including the non-cash charge, the amount of the deficiency, as defined, is $203,277.