EX-12 4 exh12.txt COMPUTATION OF EARNINGS TO FIXED CHARGES
EXHIBIT (12) COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES Sprint Corporation (Unaudited) Quarters Ended, Year-to-Date, September 30, September 30, --------------------------------------------------------------- 2003 2002 2003 2002 -------------------------------------------------------------------------------------------------------------------- (millions) Earnings Income (loss) from continuing operations before income taxes $ (771) $ 253 $ (615) $ 434 Capitalized interest (23) (34) (63) (93) Net losses in equity method investees 17 3 45 105 -------------------------------------------------------------------------------------------------------------------- Subtotal (777) 222 (633) 446 -------------------------------------------------------------------------------------------------------------------- Fixed charges Interest charges 368 386 1,139 1,164 Interest factor of operating rents 93 102 281 302 -------------------------------------------------------------------------------------------------------------------- Total fixed charges 461 488 1,420 1,466 -------------------------------------------------------------------------------------------------------------------- Earnings, as adjusted $ (316) $ 710 $ 787 $ 1,912 --------------------------------------------------------------- Ratio of earnings to fixed charges -(1) 1.45 -(2) 1.30 --------------------------------------------------------------- (1) Earnings, as adjusted, were inadequate to cover fixed charges by $777 million in the quarter ended September 30, 2003. (2) Earnings, as adjusted, were inadequate to cover fixed charges by $633 million in the year-to-date period ended September 30, 2003. Note: The ratios of earnings to fixed charges were computed by dividing fixed charges into the sum of earnings (after certain adjustments) and fixed charges. Earnings include income from continuing operations before income taxes, plus net losses in equity method investees, less capitalized interest. Fixed charges include interest on all debt of continuing operations, including amortization of debt issuance costs, and the interest component of operating rents.