iHeartMedia 2006 Annual Report Download - page 115

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EXHIBIT 12 – COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In thousands, except ratio) Year Ended
2006 2005 2004 2003 2002
Income (loss) before income taxes, equity
in earnings of non-consolidated affiliates,
extraordinary item and cumulative effect
of a change in accounting principle $ 1,152,100 $ 1,020,666 $ 1,270,082 $ 1,782,805 $ 1,085,117
Dividends and other received from
nonconsolidated affiliates 15,179 14,696 13,491 2,096 6,295
Total 1,167,279 1,035,362 1,283,573 1,784,901 1,091,412
Fixed Charges
Interest expense 483,974 443,245 367,503 392,215 430,890
Amortization of loan fees * * * * 12,077
Interest portion of rentals 377,767 345,288 323,957 285,143 246,514
Total fixed charges 861,741 788,533 691,460 677,358 689,481
Preferred stock dividends
Tax effect of preferred dividends — — — — —
After tax preferred dividends — — — — —
Total fixed charges and preferred dividends 861,741 788,533 691,460 677,358 689,481
Total earnings available for payment of
fixed charges $ 2,029,020 $ 1,823,895 $ 1,975,033 $ 2,462,259 $ 1,780,893
Ratio of earnings to fixed charges 2.35 2.31 2.86 3.64 2.58
Rental fees and charges 1,079,335 986,536 925,592 814,694 704,327
Interest rate 35% 35% 35% 35% 35%
* Amortization of loan fees is included in Interest expense beginning January 1, 2003.