EX-12 2 exhibit12.txt EXHIBIT 12
SPRINT CORPORATION EXHIBIT (12) COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES (Unaudited) Quarters Ended Year-to-Date June 30, June 30, -------------------------------------------------------------------------- 2004 2003 2004 2003 (millions, except ratios) (as restated) (as restated) (as restated) (as restated) -------------------------------------------------------------------------------------------------------------------- Earnings Income (loss) from continuing operations before income taxes $ 378 $ (1) $ 750 $ 159 Capitalized interest (12) (13) (31) (27) Net losses in equity method investees 11 10 23 28 -------------------------------------------------------------------------------------------------------------------- Subtotal 377 (4) 742 160 -------------------------------------------------------------------------------------------------------------------- Fixed charges Interest charges 343 377 694 771 Interest factor of operating rents 90 93 182 188 -------------------------------------------------------------------------------------------------------------------- Total fixed charges 433 470 876 959 -------------------------------------------------------------------------------------------------------------------- Earnings, as adjusted $ 810 $ 466 $ 1,618 $ 1,119 -------------------------------------------------------------------------- Ratio of earnings to fixed charges 1.87 -(1) 1.85 1.17 -------------------------------------------------------------------------- (1) Earnings, as adjusted, were inadequate to cover fixed charges by $4 million during the 2003 second quarter. 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.