EX-12.1 2 nihd-6302013x10qxex121.htm EXHIBIT 12.1 NIHD-6.30.2013-10Q-Ex 12.1


Exhibit 12.1

NII HOLDINGS, INC.
STATEMENT REGARDING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(dollars in thousands)
 
 
 
 
 
Three Months Ended June 30,
 
2013 (1)
 
2012
 
 
 
 
Loss from continuing operations before income tax
$
(336,086
)
 
$
(55,555
)
 
 
 
 
 
 
 
 
Add:
 
 
 
Fixed charges
200,086

 
135,421

Amortization of capitalized interest
10,232

 
6,390

 
 
 
 
Less:
 
 
 
Interest capitalized
21,721

 
34,282

Equity in (losses) gains of unconsolidated affiliates
—

 
—

Losses attributable to minority interests
—

 
—

 (Losses) earnings as adjusted
$
(147,489
)
 
$
51,974

 
 
 
 
Fixed charges:
 
 
 
Interest expense on indebtedness (including amortization of debt expense and discount)
$
150,242

 
$
80,753

Interest capitalized
21,721

 
34,282

Portion of rent expense representative of interest (30%)
28,123

 
20,386

Fixed charges
$
200,086

 
$
135,421

 
 
 
 
Ratio of earnings to fixed charges
—

 
0.38


(1) Due to our loss from continuing operations before income tax for the three months ended June 30, 2013, the ratio coverage was less than 1:1 for this period. We would have needed to generate approximately an additional $347.6 million in income from continuing operations before income tax to achieve coverage of 1:1 for the three months ended June 30, 2013.