iHeartMedia 2005 Annual Report Download - page 109

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EXHIBIT 12 – COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In thousands, except ratio) Year Ended
2005 2004 2003 2002 2001
Income (loss) before income taxes, equity
in earnings of non-consolidated affiliates,
extraordinary item and cumulative effect
of a change in accounting principle $ 1,023,143 $ 1,273,871 $ 1,787,148 $ 1,091,709 $ (1,077,469)
Dividends and other received from
nonconsolidated affiliates 14,696 13,491 2,096 6,295 7,426
Total 1,037,839 1,287,362 1,789,244 1,098,004 (1,070,043)
Fixed Charges
Interest expense 443,245 367,503 392,215 430,890 555,452
Amortization of loan fees * * * 12,077 14,648
Interest portion of rentals 345,288 323,957 285,143 246,514 225,292
Total fixed charges 788,533 691,460 677,358 689,481 795,392
Preferred stock dividends
Tax effect of preferred dividends — — — — —
After tax preferred dividends — — — — —
Total fixed charges and preferred dividends 788,533 691,460 677,358 689,481 795,392
Total earnings available for payment of
fixed charges $ 1,826,372 $ 1,978,822 $ 2,466,602 $ 1,787,485 $ (274,651)
Ratio of earnings to fixed charges 2.32 2.86 3.64 2.59 **
Rental fees and charges 986,536 925,592 814,694 704,327 643,691
Interest rate 35% 35% 35% 35% 35%
* Amortization of loan fees is included in Interest expense beginning January 1, 2003.
** For the year ended December 31, 2001, fixed charges exceeded earnings before income taxes and fixed
charges by $1.1 billion.