EX-12 7 y58173ex12.txt STATEMENT RE: COMPUTATION OF RATIOS EXHIBIT 12 LORAL SPACE & COMMUNICATIONS LTD. COMPUTATION OF DEFICIENCY OF EARNINGS TO COVER FIXED CHARGES AND RATIO OF EARNINGS TO COVER FIXED CHARGES (in thousands, except ratios) (Unaudited)
YEARS ENDED DECEMBER 31, -------------------------------- 2001 2000 1999 --------- -------- --------- Earnings: Loss before income taxes, equity in net loss of affiliates, minority interest, Globalstar related impairment charges, cumulative effect of accounting change and extraordinary gain......................... $(160,274) $(56,843) $ (62,138) Plus fixed charges: Interest expense...................................... 207,027 187,918 173,718 Interest component of rent expense(1)................. 15,717 15,665 9,953 Less capitalized interest................................ 23,097 17,082 84,315 --------- -------- --------- Earnings available to cover fixed charges.................. $ 41,311 $129,658 $ 37,218 ========= ======== ========= Fixed charges(2)........................................... $ 303,487 271,111 228,293 ========= ======== ========= Deficiency of earnings to cover fixed charges.............. $ 264,114 141,453 191,075 ========= ======== =========
--------------- (1) The interest component of rent expense is deemed to be approximately 25% of total rent expense. (2) Preferred dividends have not been adjusted for income taxes, due to the composition of the taxing jurisdictions underlying the Company's operations and the resulting impact on the Company's effective tax rate.