EX-12 4 y064111exv12.htm STATEMENT RE: COMPUTATION OF RATIOS EX-12
 

Exhibit 12
LORAL SPACE & COMMUNICATIONS LTD., A DEBTOR IN POSSESSION
COMPUTATION OF DEFICIENCY OF EARNINGS TO COVER FIXED CHARGES
                           
    For the Years Ended December 31,
     
    2004   2003   2002
             
    (in thousands)
    (unaudited)
Loss from continuing operations before income taxes, equity income (losses) in affiliates and minority interest
   $ (207,852 )   $ (368,355 )   $ (237,540 )
Plus fixed charges:
                        
 
Interest expense
     3,904       28,223       51,185  
 
Interest component of rent expense(1)
     9,059       10,402       15,380  
Less: capitalized interest
     (957 )     (14,143 )     (10,293 )
                   
Earnings available to cover fixed charges
   $ (195,846 )   $ (343,873 )   $ (181,268 )
                   
Fixed charges(2)
   $ (12,963 )   $ (45,345 )   $ (155,751 )
                   
Deficiency of earnings to cover fixed charges
   $ (208,809 )   $ (389,218 )   $ (337,019 )
                   
 
(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 our operations and the resulting impact on our effective tax rate. Fixed charges include the accrual of preferred dividends and interest on unsecured debt obligations (excluding bank debt) through July 15, 2003, the date of our Chapter 11 filing.