Cincinnati Bell 2014 Annual Report Download - page 178

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Exhibit 12.1
Calculation of Ratio of Earnings to Combined Fixed Charges and Preferred Dividends
Year ended December 31, 2014
(dollars in millions)
2014
2013
2012
2011
2010
Pre-tax income from continuing operations in consolidated subsidiaries plus fixed
charges*
$ 323.7
$ 163.2
$ 263.0
$ 267.0
$ 259.0
Fixed charges:
Interest expensed and capitalized
149.5
182.6
221.6
218.5
186.1
Appropriate portions of rentals
4.7
4.5
6.4
6.8
5.4
Total fixed charges
154.2
187.1
228.0
225.3
191.5
Pre-tax income required to pay preferred dividends
18.3
10.9
33.3
24.4
24.7
Total combined fixed charges and preferred dividends
$ 172.5
$ 198.0
$ 261.3
$ 249.7
$ 216.2
Ratio of earnings to fixed charges
2.1
—
1.2
1.2
1.4
Coverage deficiency**
n/a
23.9
n/a
n/a
n/a
Ratio of earnings to combined fixed charges and preferred dividends
1.9
—
1.0
1.1
1.2
Coverage deficiency**
n/a
34.8
n/a
n/a
n/a
* Earnings used in computing the ratio of earnings to combined fixed charges and preferred dividends consists of income from continuing
operations before income taxes, adjusted to exclude loss from equity method investees and fixed charges except for capitalized interest, and
adjusted to include dividends received from equity method investees.
** For the period in which a coverage deficiency is presented, earnings were inadequate to cover fixed charges or combined fixed charges and
preferred dividends by the amount of the deficiency.