EX-12.1 5 dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

Exhibit 12.1

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,

    Three
Months
Ended
March  31,
2010
     2005     2006    2007    2008    2009   
     (In thousands)

Computation of Earnings:

                 

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

    $ (135,554 )    $ 70,864    $ 152,840    $ 371,920    $ 421,487    $ 124,829

Add:

                 

Interest expense (1)

      223,911        217,134      237,314      255,073      251,291      58,789

Operating leases

      50,601        71,092      73,916      79,189      82,522      22,168

Amortization of interest capitalized

      2,563        2,600      2,622      2,692      2,751      518
                                          

Earnings as adjusted

      141,521        361,690      466,692      708,874      758,051      206,304

Computation of fixed charges:

                 

Interest expense

      223,911        217,134      237,314      255,073      251,291      58,789

Interest capitalized

      473        651      —        770      495      172

Operating leases

      50,601        71,092      73,916      79,189      82,522      22,168
                                          

Fixed charges

      274,985        288,877      311,230      335,032      334,308      81,129
                                          

(Deficiency) excess in earnings required to cover fixed charges

    $ (133,464 )    $ 72,813    $ 155,462    $ 373,842    $ 423,743    $ 125,175
                                          

Ratio of earnings to fixed charges (2)

      —          1.25x      1.50x      2.12x      2.27x      2.54x

 

(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, (loss) income on equity method investments and fixed charges (excluding interest capitalized), and amortization of interest capitalized. “Fixed charges” consist of interest expense, including amounts 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.