EX-12 4 ex12.htm EXHIBIT 12 Earnings to Fixed Charges

   EXHIBIT 12

TRIBUNE COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
(In thousands, except ratios)

First Half
Ended
 Fiscal Year Ended December
7/1/2001
 2000
 1999
 1998
 1997
 1996
Income from continuing operations, before              
       cumulative effect of accounting change (1)  $143,284   $310,401   $1,449,962   $389,197   $372,759   $259,838  
Add: 
     Income tax expense  129,394   270,351   933,981   272,660   250,265   175,071  
     Losses on equity investments  35,862   79,374   40,083   33,980   34,696   13,281  
     Minority interest expense, net of tax  –   16,335   –   –   –   –  
     Subtotal  308,540   676,461   2,424,026   695,837   657,720   448,190  
Fixed charge adjustments 
  Add: 
     Interest expense  130,140   240,708   113,031   88,451   86,502   47,779  
     Amortization of capitalized interest  1,495   4,012   2,065   2,068   2,076   2,108  
     Interest component of rental expense (2)  11,022   18,620   9,312   8,871   8,792   8,313  
Earnings, as adjusted  $451,197   $939,801   $2,548,434   $795,227   $755,090   $506,390  
Fixed charges: 
     Interest expense  $130,140   $240,708   $   113,031   $  88,451   $  86,502   $  47,779  
     Interest capitalized  1,436   1,950   1,117   1,897   224   168  
     Interest component of rental expense (2)  11,022   18,620   9,312   8,871   8,792   8,313  
     Interest related to guaranteed ESOP debt (3)  4,096   10,718   13,146   15,578   17,901   20,134  
Total fixed charges  $146,694   $271,996   $   136,606   $114,797   $113,419   $  76,394  
Ratio of earnings to fixed charges (1)  3.1   3.5   18.7   6.9   6.7   6.6  

(1)  

Income from continuing operations, before cumulative effect of accounting change, included a non-operating net gain of $4.6 million and after-tax restructuring charges of $8.7 million in the 2001 second quarter, a non-operating net loss of $93.1 million in 2000, and non-operating net gains of $1,067.6 million in 1999, $63.5 million in 1998, $68.9 million in 1997, and $6.0 million in 1996. Excluding these non-operating items and the restructuring charges, the ratio of earnings to fixed charges was 3.1 in the 2001 first half, 4.0 in 2000, 5.8 in 1999, 5.9 in 1998, 5.7 in 1997, and 6.6 in 1996. See Note 9 to the Company’s Condensed Consolidated Financial Statements in this Form 10-Q and the Eleven Year Financial Summary in the Company’s 2000 Form 10-K for further discussion of these non-operating items.


(2)  

Represents a reasonable approximation of the interest cost component of rental expense incurred by the Company.


(3)  

Tribune Company guarantees the debt of its Employee Stock Ownership Plan (“ESOP”).