EX-12 3 exhibit12.htm COMPUTATION OF RATIOS

 

SPRINT CORPORATION

EXHIBIT (12)

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

(Unaudited)

 

 

Quarters Ended

June 30,

Year-to-Date

June 30,

 

 

2005

 

2004

 

2005

 

2004

 

(millions, except ratios)

 

 

 

 

 

 

 

 

 

Earnings

 

 

 

 

 

 

 

 

Income before income taxes

$

969

$

378

$

1,732

$

750

Capitalized interest

 

(9)

 

(12)

 

(19)

 

(31)

Net (earnings) losses in equity method investees

 

 

(1)

 

 

11

 

 

9

 

 

23

 

 

 

 

 

 

 

 

 

Subtotal

 

959

 

377

 

1,722

 

742

 

 

 

 

 

 

 

 

 

Fixed charges

 

 

 

 

 

 

 

 

Interest charges

 

295

 

343

 

609

 

694

Interest factor of operating rents

 

94

 

90

 

190

 

182

 

 

 

 

 

 

 

 

 

Total fixed charges

 

389

 

433

 

799

 

876

 

 

 

 

 

 

 

 

 

Earnings, as adjusted

$

1,348

$

810

$

2,521

$

1,618

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

3.47

 

1.87

 

3.16

 

1.85

 

 

Note:

The ratios of earnings to fixed charges were computed by dividing fixed charges into the sum of earnings (after certain adjustments) and fixed charges. Earnings include income from continuing operations before income taxes, plus net losses in equity method investees, less capitalized interest. Fixed charges include interest on all debt of continuing operations, including amortization of debt issuance costs, and the interest component of operating rents.