EX-12 2 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  
      2006      2007      2008      2009      2010  

Computation of Earnings:

              

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

   $ 70,864      $ 152,840      $ 371,920      $ 421,487      $ 556,025   

Add:

              

Interest expense (1)

     217,134        237,314        255,073        251,291        247,504   

Operating leases

     71,092        73,916        79,189        82,522        90,001   

Amortization of interest capitalized

     2,600        2,622        2,692        2,751        2,819   
                                            

Earnings as adjusted

     361,690        466,692        708,874        758,051        896,349   
                                            

Computation of fixed charges:

              

Interest expense

     217,134        237,314        255,073        251,291        247,504   

Interest capitalized

     651        —           770        495        1,011   

Operating leases

     71,092        73,916        79,189        82,522        90,001   
                                            

Fixed charges

     288,877        311,230        335,032        334,308        338,516   
                                            

Excess in earnings required to cover fixed charges

   $ 72,813      $ 155,462      $ 373,842      $ 423,743      $ 557,833   
                                            

Ratio of earnings to fixed charges (2)

     1.25        1.50        2.12        2.27        2.65   

 

(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, 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.