EX-12 5 sprintcorp10-kexhibit122014.htm RATIO OF EARNINGS TO COMBINED FIXED CHARGES Sprint Corp 10-K Exhibit 12 2014


Exhibit 12
Computation of Ratio of Earnings to Fixed Charges
 
 
Successor
 
 
Predecessor
 
Year Ended
March 31,
 
Three Months Ended
March 31,
 
Three Months Ended
March 31,
 
Year Ended
December 31,
 
87 Days Ended December 31,
 
 
191 Days Ended
July 10,
 
Three Months Ended
March 31,
 
Years Ended December 31,
 
2015
 
2014
 
2013
 
2013
 
2012
 
 
2013
 
2013
 
2012
 
2011
 
2010
 
(in millions)
Earnings (loss):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Loss) income from continuing operations before income taxes
$
(3,919
)
 
$
(95
)
 
$
(8
)
 
$
(1,815
)
 
$
(23
)
 
 
$
443

 
$
(605
)
 
$
(4,172
)
 
$
(2,636
)
 
$
(3,299
)
Equity in losses of unconsolidated investments, net
—

 
—

 
—

 
—

 
—

 
 
482

 
202

 
1,114

 
1,730

 
1,286

Fixed charges
2,969

 
747


—

 
1,367

 
—

 
 
1,501

 
608

 
2,365

 
2,068

 
2,081

Interest capitalized
(56
)
 
(13
)

—

 
(30
)
 
—

 
 
(29
)
 
(15
)
 
(278
)
 
(413
)
 
(13
)
Amortization of interest capitalized
133

 
33

 
—

 
56

 
—

 
 
71

 
33

 
81

 
48

 
85

Earnings (loss), as adjusted
(873
)
 
672


(8
)
 
(422
)
 
(23
)
 
 
2,468

 
223

 
(890
)
 
797

 
140

Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
2,051

 
516

 
—

 
918

 
—

 
 
1,135

 
432

 
1,428

 
1,011

 
1,464

Interest capitalized
56

 
13

 
—

 
30

 
—

 
 
29

 
15

 
278

 
413

 
13

Portion of rentals representative of interest
862

 
218

 
—

 
419

 
—

 
 
337

 
161

 
659

 
644

 
604

Fixed charges
2,969

 
747


—

 
1,367

 
—

 
 
1,501

 
608

 
2,365

 
2,068

 
2,081

Ratio of earnings to fixed charges
— (1)

 
— (2)

 
— (3)

 
— (4)

 
— (5)

 
 
1.6 (6)

 
— (7)

 
— (8)

 
— (9)

 
— (10)


(1)
Successor earnings (loss), as adjusted were inadequate to cover fixed charges by $3.8 billion at March 31, 2015.
(2)
Successor earnings (loss), as adjusted were inadequate to cover fixed charges by $75 million at March 31, 2014.
(3)
Successor earnings (loss), as adjusted were inadequate to cover fixed charges by $8 million at March 31, 2013.
(4)
Successor earnings (loss), as adjusted were inadequate to cover fixed charges by $1.8 billion at December 31, 2013.
(5)
Successor earnings (loss), as adjusted were inadequate to cover fixed charges by $23 million at December 31, 2012.
(6)
The income from continuing operations before taxes for the 191 days ended July 10, 2013 included a pretax gain of $2.9 billion as a result of acquisition of our previously-held equity interest in Clearwire.
(7)
Predecessor earnings (loss), as adjusted were inadequate to cover fixed charges by $385 million at March 31, 2013.
(8)
Predecessor earnings (loss), as adjusted were inadequate to cover fixed charges by $3.3 billion in 2012.
(9)
Predecessor earnings (loss), as adjusted were inadequate to cover fixed charges by $1.3 billion in 2011.
(10)
Predecessor earnings (loss), as adjusted were inadequate to cover fixed charges by $1.9 billion in 2010.