EX-12.1 7 exhibit121-10k.htm EXHIBIT 12.1 Exhibit 12.1-10K
Exhibit 12.1

NII HOLDINGS, INC.
STATEMENT REGARDING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2008
 
2009
 
2010
 
2011
 
2012 (1)
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations
  before income tax
$
480,817

 
$
572,204

 
$
597,923

 
$
569,385

 
$
(543,140
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Add:
 
 
 
 
 
 
 
 
 
Fixed charges
269,020

 
290,952

 
423,578

 
481,238

 
593,981

Amortization of capitalized interest
8,244

 
9,541

 
10,396

 
21,086

 
38,720

 
 
 
 
 
 
 
 
 
 
Less:
 
 
 
 
 
 
 
 
 
Interest capitalized
10,345

 
12,490

 
10,819

 
76,204

 
127,189

Equity in (losses) gains of unconsolidated
  affiliates
—

 
—

 
—

 
—

 
—

Losses attributable to minority interests
—

 
—

 
—

 
—

 
—

Earnings (losses) as adjusted
$
747,736

 
$
860,207

 
$
1,021,078

 
$
995,505

 
$
(37,628
)
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
Interest expense on indebtedness (including amortization of debt expense and discount)
$
205,516

 
$
223,476

 
$
344,999

 
$
322,111

 
$
373,253

Interest capitalized
10,345

 
12,490

 
10,819

 
76,204

 
127,189

Portion of rent expense representative of
  interest (30%)
53,159

 
54,986

 
67,760

 
82,923

 
93,539

Fixed charges
$
269,020

 
$
290,952

 
$
423,578

 
$
481,238

 
$
593,981

 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
2.78

 
2.96

 
2.41

 
2.07

 
—


(1) Due to our loss from continuing operations before income tax for the year ended December 31, 2012, the ratio coverage was less than 1:1 for this period. We would have needed to generate approximately an additional $632.0 million in income from continuing operations before income tax to achieve coverage of 1:1 for the year ended December 31, 2012.