Exhibit 12
Computation of Ratio of Earnings to Fixed Charges (Dollars in Millions) Six months Six months Year Year Year Year Year ended ended ended ended ended ended ended July 1, July 2, December 31, January 2, January 3, December 28, December 29, 2001 2000 2000 2000 1999 1997 1996 ---------- ---------- ----------- ---------- ---------- ------------ ------------ Earnings: Income from continuing operations before income taxes and cumulative effect of change in accounting principle 352,296 114,546 229,870 375,385 668,059 463,074 360,217 Adjustments: Fixed charges, as below 39,977 34,060 73,008 41,369 29,331 12,562 10,947 Interest capitalized - - - (1,800) (5,600) (450) - Preferred stock dividend requirements, adjusted to a pretax equivalent basis (1,384) (1,339) (1,710) (1,583) (1,593) (1,593) (1,133) Equity in (income) losses of less than 50 percent owned entities 19,102 20,775 36,466 8,814 5,141 (10,512) (19,702) Dividends from less than 50 percent owned - - 940 930 1,587 3,584 3,403 --------- --------- --------- --------- --------- -------- --------- entities Earnings as adjusted $ 409,990 $ 168,042 $ 338,573 $ 423,115 $ 696,925 $466,665 353,732 ========= ========= ========= ========= ========= ======== ========= Fixed charges: Interest expense and amortization of deferred financing costs, expensed or capitalized 27,864 25,140 54,731 28,586 17,138 1,702 1,514 Portion of rent expense representative of the interest factor 10,728 7,582 16,567 11,200 10,600 9,267 8,300 Preferred stock dividend requirements, adjusted to a pretax equivalent basis 1,384 1,339 1,710 1,583 1,593 1,593 1,133 --------- --------- --------- --------- --------- -------- --------- Total Fixed Charges $ 39,977 $ 34,060 $ 73,008 $ 41,369 $ 29,331 $ 12,562 $10,947 ========= ========= ========= ========= ========= ======== ========= Ratio of earnings to fixed charges 10.26(a) 4.93 4.64(b) 10.23 23.76(c) 37.2(d) 32.3 ========= ========= ========= ========= ========= ======== =========
---------------------------- a. For the six months ended July 1, 2001, pre-tax income included non-recurring gains of approximately $321.1 million resulting from the sale and exchange of certain cable systems. Excluding these gains, the ratio would have been 2.2. b. For the fiscal year ended December 31, 2000, pre-tax income included a non-recurring charge of approximately $27.5 million resulting from an early retirement program at The Washington Post. Excluding this charge, the ratio would have been 5.0. c. For the fiscal year ended January 3, 1999, pre-tax income included non-recurring gains of approximately $309.7 million resulting from the disposition of the Company's 28 percent interest in Cowles Media Company, the sale of 14 small cable systems and the merger of Junglee and Amazon.com. Excluding these gains, the ratio would have been 13.2. d. For the fiscal year ended December 28, 1997, pre-tax income included non-recurring gains of approximately $71.1 million resulting from the sale of assets of the Company's PASS Sports subsidiary and its investment interests in Bear Island Paper Company, L.P. and Bear Island Timberlands Company, L.P. Excluding these gains, the ratio would have been 31.5.