EX-12 3 dex12.htm STATEMENT REGARDING COMPUTATION OF EARNINGS Statement Regarding Computation of Earnings

Exhibit 12

STATEMENT REGARDING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

Ratio of Earnings to Fixed Charges

American Tower Corporation

The following table reflects the computation of the ratio of earnings to fixed charges for the periods presented (in thousands):

 

     Year Ended December 31,
     2004     2005     2006    2007    2008

Computation of Earnings:

            

(Loss) income from continuing operations before income taxes, minority interest and (loss) income on equity method investments

   $ (325,112 )   $ (135,554 )   $ 70,864    $ 152,840    $ 371,920

Add:

            

Interest expense (1)

     263,734       223,911       217,134      237,314      255,073

Operating leases

     35,622       50,601       71,092      73,916      79,189

Amortization of interest capitalized

     2,532       2,563       2,600      2,622      2,692
                                    

Earnings as adjusted

     (23,224 )     141,521       361,690      466,692      708,874

Computation of fixed charges:

            

Interest expense

     263,734       223,911       217,134      237,314      255,073

Interest capitalized

     226       473       651         770

Operating leases

     35,622       50,601       71,092      73,916      79,189
                                    

Fixed charges

     299,582       274,985       288,877      311,230      335,032
                                    

(Deficiency) excess in earnings required to cover fixed charges

   $ (322,806 )   $ (133,464 )   $ 72,813    $ 155,462    $ 373,842
                                    

Ratio of earnings to fixed charges (2)

         1.25x      1.50x      2.12x

 

(1) Interest expense includes amortization of deferred financing costs. Interest expense also includes an amount related to our capital lease with TV Azteca.
(2) For the purpose of this calculation, “earnings” consists of (loss) income from continuing operations before income taxes, minority interest, (loss) income on equity method investments, fixed charges (excluding interest capitalized), and amortization of interest capitalized. “Fixed charges” consist of interest expensed and capitalized, amortization of debt discount and related issuance costs and the component of rental expense associated with operating leases believed by management to be representative of the interest factor thereon.