EX-12: COMPUTATION OF DEFICIENCY OF EARNINGS

EX-12 3 y86583exv12.htm EX-12: COMPUTATION OF DEFICIENCY OF EARNINGS EX-12: COMPUTATION OF DEFICIENCY OF EARNINGS

Exhibit 12

LORAL SPACE & COMMUNICATIONS LTD.

COMPUTATION OF DEFICIENCY OF EARNINGS TO COVER FIXED CHARGES

(in thousands)

(unaudited)



		Three Months Ended
		March 31,

		2003			2002

(Loss) income before income taxes, equity in net losses of affiliates, minority interest and cumulative effect of change in accounting principle		$	(37,650	)	$	1,544
Plus fixed charges:
	Interest expense		26,182			26,006
	Interest component of rent expense⁽¹⁾		2,319			3,722
Less: capitalized interest			(9,378	)		(7,436	)

Earnings available to cover fixed charges		$	(18,527	)	$	23,836

Fixed charges⁽²⁾		$	(31,862	)	$	(41,691	)

Deficiency of earnings to cover fixed charges		$	(50,389	)	$	(17,855	)

⁽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.


⁽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.