Comcast 2009 Annual Report Download - page 208

COMCAST CORPORATION
STATEMENT REGARDING COMPUTATION OF RATIO OF EARNINGS
TO COMBINED FIXED CHARGES AND PREFERRED DIVIDENDS
(dollars in millions)
(1) For purposes of calculating the ratio of earnings to combined fixed charges and preferred dividends, earnings is the amount resulting from (1) adding (a) pretax income from continuing
operations before adjustment for noncontrolling interests in consolidated subsidiaries or income or loss from equity investees, (b) fixed charges, (c) amortization of capitalized interest,
(d) distributed income of equity investees and (e) our share of pretax losses of equity investees for which charges arising from guarantees are included in fixed charges and (2) subtracting
(i) interest capitalized, (ii) preference security dividend requirements of consolidated subsidiaries and (iii) the noncontrolling interest in pretax income of subsidiaries that have not incurred
fixed charges. Fixed charges is the sum of (w) interest expensed and capitalized, (x) amortized premiums, discounts and capitalized expenses related to indebtedness, (y) an estimate of the
interest within rental expense and (z) preference security dividend requirements of our consolidated subsidiaries. Preferred security dividend is the amount of pretax earnings that is required to
pay the dividends on outstanding preference securities. Interest associated with our uncertain tax positions is a component of income tax expense.
(2) In July 2006, in connection with transactions with Adelphia and Time Warner, we transferred our previously owned cable systems located in Los Angeles, Cleveland and Dallas to Time
Warner Cable. These cable systems are presented as discontinued operations for the years ended on or before December 31, 2006. Accordingly, we have adjusted the ratio of earnings to
combined fixed charges and preferred dividends to reflect the impact of discontinued operations. Prior to this adjustment, the ratio of earnings to combined fixed charges and preferred
dividends for the years ended December 31, 2005 was 2.01x.
Years Ended December 31
2009 2008 2007 2006 2005
Computation of Earnings
:
Pretax income from consolidated continuing operations before adjustment for
noncontrolling interest in consolidated subsidiaries or income or loss from equity
investees
$
5,170
$
4,097
$
4,412
$
3,659
$
1,762
Fixed charges
2,487
2,589
2,419
2,163
1,872
Distributed income of equity investees
30
16
63
63
4
Noncontrolling interest in pretax income of subsidiaries that have not incurred fixed
charges
-
-
(1
)
(3
)
(37
)
Less: Preference security dividend requirements of consolidated subsidiaries
(1
)
(6
)
(12
)
(9
)
(7
)
Total Earnings
$
7,686
$
6,696
$
6,881
$
5,873
$
3,593
Computation of Fixed charges
:
Interest expense
$
2,267
$
2,384
$
2,255
$
2,033
$
1,835
Amortized premiums, discounts and capitalized expenses related to indebtedness
81
55
34
31
(40
)
Portion of rents representative of an interest factor
138
144
118
90
70
Preference security dividend requirements of consolidated subsidiaries
1
6
12
9
7
Total Fixed Charges
$
2,487
$
2,589
$
2,419
$
2,163
$
1,872
Ratio of earnings to combined fixed charges
and preferred dividends
3.09x
2.59x
2.84x
2.72x
1.92x
(2) (2)
(1)
(1)
(1)