EX-12 7 w25655exv12.htm EXHIBIT 12 exv12
 

Exhibit 12
SPRINT NEXTEL CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
                                                         
    For the Six Months Ended        
    June 30,     For the Years Ended December 31,  
    2006     2005     2005     2004     2003     2002     2001  
    (in millions)  
Earnings
                                                       
Income (loss) from continuing operations before income taxes
  $ 696     $ 883     $ 1,291     $ (3,244 )   $ (2,149 )   $ (1,173 )   $ (4,047 )
Capitalized interest
    (40 )     (19 )     (53 )     (56 )     (58 )     (88 )     (108 )
Net losses (earnings) in equity method investees
    (1 )     10       (107 )     41       79       120       175  
 
                                         
Subtotal
    655       874       1,131       (3,259 )     (2,128 )     (1,141 )     (3,980 )
 
                                         
Fixed charges
                                                       
Interest charges
    833       578       1,347       1,274       1,414       1,458       1,247  
Interest factor of operating rents
    308       178       450       347       360       388       368  
 
                                         
Total fixed charges
    1,141       756       1,797       1,621       1,774       1,846       1,615  
 
                                         
Earnings (loss), as adjusted
  $ 1,796     $ 1,630     $ 2,928     $ (1,638 )   $ (354 )   $ 705     $ (2,365 )
 
                                         
Ratio of earnings to fixed charges
    1.57       2.16       1.63       (1)     (2)     (3)     (4)
 
                                         
 
(1)   Earnings, as adjusted, were inadequate to cover fixed charges by $3.3 billion in 2004.
 
(2)   Earnings, as adjusted, were inadequate to cover fixed charges by $2.1 billion in 2003.
 
(3)   Earnings, as adjusted, were inadequate to cover fixed charges by $1.1 billion in 2002.
 
(4)   Earnings, as adjusted, were inadequate to cover fixed charges by $4.0 billion in 2001.
     
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. Fixed charges include interest on all debt of continuing operations, including amortization of debt premiums, discounts and issuance costs, and the interest component of operating rents. Earnings include income from continuing operations before income taxes, plus net losses (earnings) in equity method investees, less capitalized interest.