EX-12.1 5 tmus12312013ex121.htm TMUS EXHIBIT 12.1 TMUS 12/31/2013 EX 12.1


Exhibit 12.1

Computation of Ratio of Earnings to Fixed Charges

 
Year Ended December 31,
(in millions)
2013
 
2012
 
2011
 
2010
 
2009
Earnings available for fixed charges:
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes and earnings from unconsolidated affiliates
$
94

 
$
(6,991
)
 
$
(4,919
)
 
$
2,180

 
$
2,328

Fixed charges
2,118

 
1,474

 
1,487

 
1,395

 
1,562

Amortization of capitalized interest
34

 
34

 
31

 
27

 
24

Capitalized interest
(5
)
 
(9
)
 
(24
)
 
(35
)
 
(56
)
Earnings from non-controlling interests

 

 

 
(3
)
 
(6
)
Earnings available for fixed charges
$
2,241

 
$
(5,492
)
 
$
(3,425
)
 
$
3,564

 
$
3,852

Fixed charges:
 
 
 
 
 
 
 
 
 
Interest expense including capitalized interest
$
1,229

 
$
686

 
$
694

 
$
591

 
$
796

Interest portion of rent expense (1)
889

 
788

 
793

 
804

 
766

Fixed charges
$
2,118

 
$
1,474

 
$
1,487

 
$
1,395

 
$
1,562

Ratio of earnings to fixed charges (2)
1.06

 

 

 
2.55

 
2.47

(1)
The portion of operating rental expense that management believes is representative of interest is estimated to be 33%.
(2)
Due primarily to T-Mobile’s non-cash impairment charges in the years ended December 31, 2012 and 2011, the ratio coverage was less than 1:1 in each of these periods. The Company would have needed to generate additional earnings of $7.0 billion and $4.9 billion in the year ended December 31, 2012 and 2011, respectively, to achieve a coverage of 1:1 in each of these periods.