EX-12 6 sprintcorpdec-2014exhibit12.htm RATIO OF EARNINGS TO COMBINED FIXED CHARGES Sprint Corp Dec-2014 Exhibit 12


Exhibit 12
Computation of Ratio of Earnings to Fixed Charges
 
 
Successor
 
 
Predecessor
 
Nine Months Ended
December 31,
 
Nine Months Ended
December 31,
 
Three Months Ended March 31,
 
Year Ended
December 31,
 
 
101 days ended July 10,
 
Years Ended December 31,
 
2014
 
2013
 
2014
 
2013
 
 
2013
 
2012
 
2011
 
2010
 
2009
 
(in millions)
Earnings (loss):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Loss) income from continuing operations before income taxes
$
(3,722
)
 
$
(1,807
)
 
$
(95
)
 
$
(1,815
)
 
 
$
1,048

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

 
—

 
—

 
—

 
 
280

 
1,114

 
1,730

 
1,286

 
803

Fixed charges
2,212


1,367

 
747

 
1,367

 
 
894

 
2,365

 
2,068

 
2,081

 
2,047

Interest capitalized
(41
)

(30
)
 
(13
)
 
(30
)
 
 
(14
)
 
(278
)
 
(413
)
 
(13
)
 
(12
)
Amortization of interest capitalized
99

 
56

 
33

 
56

 
 
38

 
81

 
48

 
85

 
85

Earnings (loss), as adjusted
(1,452
)

(414
)

672

 
(422
)
 
 
2,246

 
(890
)
 
797

 
140

 
(571
)
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
1,528

 
918

 
516

 
918

 
 
703

 
1,428

 
1,011

 
1,464

 
1,450

Interest capitalized
41

 
30

 
13

 
30

 
 
14

 
278

 
413

 
13

 
12

Portion of rentals representative of interest
643

 
419

 
218

 
419

 
 
177

 
659

 
644

 
604

 
585

Fixed charges
2,212


1,367


747

 
1,367

 
 
894

 
2,365

 
2,068

 
2,081

 
2,047

Ratio of earnings to fixed charges
— (1)

 
— (2)

 
— (3)

 
— (4)

 
 
2.5 (5)

 
— (6)

 
— (7)

 
— (8)

 
— (9)


(1)
Successor earnings (loss), as adjusted were inadequate to cover fixed charges by $3.7 billion for the nine months ended December 31, 2014.
(2)
Successor earnings (loss), as adjusted were inadequate to cover fixed charges by $1.8 billion for the nine months ended December 31, 2013.
(3)
Successor earnings (loss), as adjusted were inadequate to cover fixed charges by $75 million for the three months ended March 31, 2014.
(4)
Successor earnings (loss), as adjusted were inadequate to cover fixed charges by $1.8 billion in the year ended 2013.
(5)
The income from continuing operations before income taxes for 101 days period 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.
(6)
Predecessor earnings (loss), as adjusted were inadequate to cover fixed charges by $3.3 billion in the year ended 2012.
(7)
Predecessor earnings (loss), as adjusted were inadequate to cover fixed charges by $1.3 billion in the year ended 2011.
(8)
Predecessor earnings (loss), as adjusted were inadequate to cover fixed charges by $1.9 billion in the year ended 2010.
(9)
Predecessor earnings (loss), as adjusted were inadequate to cover fixed charges by $2.6 billion in the year ended 2009.