COMP OF DEFICIENCY OF EARNINGS TO COVER FIXED CHRG

EX-12 3 y933328kexv12.htm COMP OF DEFICIENCY OF EARNINGS TO COVER FIXED CHRG COMP OF DEFICIENCY OF EARNINGS TO COVER FIXED CHRG

Exhibit 12

LORAL SPACE & COMMUNICATIONS LTD.

COMPUTATION OF DEFICIENCY OF EARNINGS TO COVER FIXED CHARGES



		Years Ended December 31,

		2002			2001			2000


		(in thousands)
		(unaudited)




Loss before income taxes, equity in net losses of affiliates, minority interest and cumulative effect of change in accounting principle		$	(147,354	)	$	(126,333	)	$	(56,843	)




Plus fixed charges:




	Interest expense		106,861			207,027			187,918




	Interest component of rent expense⁽¹⁾		15,380			15,717			15,664




Less: capitalized interest			(29,816	)		(23,097	)		(17,082	)

Earnings available to cover fixed charges		$	(54,929	)	$	73,314		$	129,657

Fixed charges⁽²⁾		$	(211,427	)	$	(303,487	)	$	(271,110	)

Deficiency of earnings to cover fixed charges		$	(266,356	)	$	(230,173	)	$	(141,453	)

⁽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.