EX-99.3 7 dex993.htm INTERIM UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Interim Unaudited Consolidated Financial Statements

Exhibit 99.3

SPRINT NEXTEL CORPORATION

COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

 

     2005     2004     2003     2002     2001  
     (in millions)  

Earnings

          

Income (loss) from continuing operations before income taxes

   $ 1,291     $ (3,244 )   $ (2,149 )   $ (1,173 )   $ (4,047 )

Capitalized interest

     (53 )     (56 )     (58 )     (88 )     (108 )

Net losses (earnings) in equity method investees

     (107 )     41       79       120       175  
                                        

Subtotal

     1,131       (3,259 )     (2,128 )     (1,141 )     (3,980 )
                                        

Fixed charges

          

Interest charges

     1,347       1,274       1,414       1,458       1,247  

Interest factor of operating rents

     450       347       360       388       368  
                                        

Total fixed charges

     1,797       1,621       1,774       1,846       1,615  
                                        

Earnings (loss), as adjusted

   $ 2,928     $ (1,638 )   $ (354 )   $ 705     $ (2,365 )
                                        

Preferred stock dividends paid

     7       7       7       7       7  

Total fixed charges

     1,797       1,621       1,774       1,846       1,615  
                                        

Total fixed charges and preferred stock dividends

     1,804       1,628       1,781       1,853       1,622  

Ratio of combined earnings to fixed charges and preferred stock dividends

     1.62       (1)     (2)     (3)     (4)
                                        

(1) Earnings, as adjusted, were inadequate to cover fixed charges and preferred stock dividends by $3.3 billion in 2004.
(2) Earnings, as adjusted, were inadequate to cover fixed charges and preferred stock dividends by $2.1 billion in 2003.
(3) Earnings, as adjusted, were inadequate to cover fixed charges and preferred stock dividends by $1.1 billion in 2002.
(4) Earnings, as adjusted, were inadequate to cover fixed charges and preferred stock dividends by $4 billion in 2001.

 

Note: The ratios of earnings to combined fixed charges and preferred stock dividends were computed by dividing fixed charges and pre-tax earnings required to cover preferred stock dividends 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 issuance costs, and the interest component of operating rents. Pre-tax earnings required to cover preferred stock dividends are calculated by dividing one less our effective income tax rate into preferred stock dividends, as adjusted for the tax benefits related to unallocated shares. Earnings included Income from continuing operations before income taxes, plus net losses in equity method investees, less capitalized interest.