EX-12 7 sprintcorpexhibit122013.htm RATIO OF EARNINGS TO COMBINED FIXED CHARGES Sprint Corp Exhibit 12 2013


Exhibit 12
Computation of Ratio of Earnings to Fixed Charges
 
 
Successor
 
 
Predecessor
 
Year Ended December 31,
 
87 Days Ended December 31,
 
 
191 Days Ended July 10,
 
Years Ended December 31,
 
2013
 
2012
 
 
2013
 
2012
 
2011
 
2010
 
2009
 
(in millions)
Earnings (loss):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Loss) income from continuing operations before income taxes
$
(1,815
)
 
$
(23
)
 
 
$
443

 
$
(4,172
)
 
$
(2,636
)
 
$
(3,299
)
 
$
(3,494
)
Equity in losses of unconsolidated investments, net
—

 
—

 
 
482

 
1,114

 
1,730

 
1,286

 
803

Fixed charges
1,367

 
—

 
 
1,501

 
2,365

 
2,068

 
2,081

 
2,047

Interest capitalized
(30
)
 
—

 
 
(29
)
 
(278
)
 
(413
)
 
(13
)
 
(12
)
Amortization of interest capitalized
56

 
—

 
 
71

 
81

 
48

 
85

 
85

Earnings (loss), as adjusted
(422
)
 
(23
)
 
 
2,468

 
(890
)
 
797

 
140

 
(571
)
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
918

 
—

 
 
1,135

 
1,428

 
1,011

 
1,464

 
1,450

Interest capitalized
30

 
—

 
 
29

 
278

 
413

 
13

 
12

Portion of rentals representative of interest
419

 
—

 
 
337

 
659

 
644

 
604

 
585

Fixed charges
1,367

 
—

 
 
1,501

 
2,365

 
2,068

 
2,081

 
2,047

Ratio of earnings to fixed charges
— (1)

 
— (2)

 
 
1.6 (3)

 
— (4)

 
— (5)

 
— (6)

 
— (7)


(1)
Successor earnings (loss), as adjusted were inadequate to cover fixed charges by $1.8 billion at December 31, 2013.
(2)
Successor earnings (loss), as adjusted were inadequate to cover fixed charges by $23 million at December 31, 2012.
(3)
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.
(4)
Predecessor earnings (loss), as adjusted were inadequate to cover fixed charges by $3.3 billion in 2012.
(5)
Predecessor earnings (loss), as adjusted were inadequate to cover fixed charges by $1.3 billion in 2011.
(6)
Predecessor earnings (loss), as adjusted were inadequate to cover fixed charges by $1.9 billion in 2010.
(7)
Predecessor earnings (loss), as adjusted were inadequate to cover fixed charges by $2.6 billion in 2009.