Comcast 2010 Annual Report Download - page 327

Statement Regarding Computation of Ratio of Earnings to Combined Fixed Charges and
Preferred Dividends
Year ended December 31 (in millions)
2010
2009
2008
2007
2006
Computation of Earnings:
Pretax income from continuing operations before adjustment for
noncontrolling interests in consolidated subsidiaries or income or loss from
equity investees
$
6,245
$
5,170
$
4,097
$
4,412
$
3,659
Fixed charges
2,298
2,487
2,589
2,419
2,163
Distributed income of equity investees
20
48
16
63
63
Noncontrolling interests in pretax income of subsidiaries that have not incurred
fixed charges
—
—
—
(
1
)
(3
)
Less: Preference security dividend requirements of consolidated subsidiaries
(2
)
(1
)
(6
)
(12
)
(9
)
Total Earnings
$
8,561
$
7,704
$
6,696
$
6,881
$
5,873
Computation of Fixed charges:
Cash interest expense
$
2,134
$
2,267
$
2,384
$
2,255
$
2,033
Amortized premiums, discounts and capitalized expenses related to
indebtedness
22
81
55
34
31
Portion of rents representative of an interest factor
140
138
144
118
90
Preference security dividend requirements of consolidated subsidiaries
2
1
6
12
9
Total Fixed Charges
$
2,298
$
2,487
$
2,589
$
2,419
$
2,163
Ratio of earnings to combined fixed charges and preferred dividends
3.73x
3.10x
2.59x
2.84x
2.72x
(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 certain 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 year ended 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.
Comcast 2010 Annual Report on Form 10-K
(2)
(1)
(1)
(1)