EX-12.1 3 nihd-12312013xexhibit121x1.htm EXHIBIT 12.1 NIHD-12.31.2013-Exhibit 12.1-10K
Exhibit 12.1

NII HOLDINGS, INC.
COMPUTATION OF RATIO OF EARNINGS (LOSS) TO FIXED CHARGES
(dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31,
 
 
2013
 
2012
 
2011
 
2010
 
2009
 
 
 
 
 
 
 
 
 
 
 
(Loss) earnings:
 
 
 
 
 
 
 
 
 
 
(Loss) income from continuing operations before income tax provision
 
$
(1,163,365
)
 
$
(439,335
)
 
$
613,900

 
$
643,159

 
$
597,735

 
 
 
 
 
 
 
 
 
 
 
Add:
 
 
 
 
 
 
 
 
 
 
Fixed charges
 
717,578

 
582,428

 
467,563

 
411,407

 
287,432

Amortization of capitalized interest
 
49,066

 
38,720

 
21,086

 
10,396

 
9,541

 
 
 
 
 
 
 
 
 
 
 
Less:
 
 
 
 
 
 
 
 
 
 
Interest capitalized
 
78,254

 
127,189

 
76,204

 
10,819

 
12,490

(Loss) earnings, as adjusted
 
$
(474,975
)
 
$
54,624

 
$
1,026,345

 
$
1,054,143

 
$
882,218

 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
Interest expense on indebtedness (including amortization of debt expense and discount)
 
$
539,159

 
$
365,521

 
$
311,735

 
$
335,918

 
$
222,544

Interest capitalized
 
78,254

 
127,189

 
76,204

 
10,819

 
12,490

Portion of rent expense representative of interest (30%)
 
100,165

 
89,718

 
79,624

 
64,670

 
52,398

Fixed charges
 
$
717,578

 
$
582,428

 
$
467,563

 
$
411,407

 
$
287,432

 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
 
—

(1)
—

(2)
2.20

 
2.56

 
3.07


(1) Earnings were inadequate to cover fixed charges by $1,192.6 million for the year ended December 31, 2013.

(2) Earnings were inadequate to cover fixed charges by $527.8 million for the year ended December 31, 2012.