iHeartMedia 2002 Annual Report Download - page 62

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is possible, however, that future results of operations for any particular period could be materially affected by changes in our assumptions or
the effectiveness of our strategies related to these proceedings.
Inflation
Inflation has affected our performance in terms of higher costs for wages, salaries and equipment. Although the exact impact of inflation is
indeterminable, we believe we have offset these higher costs by increasing the effective advertising rates of most of our broadcasting stations
and outdoor display faces.
RatioofEarningstoFixedCharges
The ratio of earnings to fixed charges is as follows:
* For the year ended December 31, 2001, fixed charges exceeded earnings before income taxes and fixed charges by $1.3 billion.
The ratio of earnings to fixed charges was computed on a total enterprise basis. Earnings represent income from continuing operations
before income taxes less equity in undistributed net income (loss) of unconsolidated affiliates plus fixed charges. Fixed charges represent
interest, amortization of debt discount and expense, and the estimated interest portion of rental charges. We had no preferred stock outstanding
for any period presented.
ITEM 7A. Quantitative and Qualitative Disclosures about Market Risk.
Required information is within Item 7
56
Year Ended December 31,
2002 2001 2000 1999 1998
2.62 * 2.20 2.04 1.83