EX-12 9 dex12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

 

Exhibit 12

 

Motorola, Inc. Computation of

Ratio of Earnings to Fixed Charges

 

     Years Ended December 31,
  

(In Millions)

    2003
    2002
     2001
     2000
     1999
  

Pretax income (loss) (1)

    $ 1,384    $ (3,424 )   $ (5,449 )   $ 2,328     $ 1,434  

Capitalized interest

      —      —       (13 )     (18 )     —  

Fixed charges (as calculated below)

      822      838       945       806       568  
    
  
 
 
 

Earnings (2)

    $ 2,206      $(2,586 )     $(4,517 )   $ 3,116     $ 2,002  
    
  
 
 
 

Fixed charges:

                                        

Interest expense

    $ 728    $ 740     $ 806     $ 680     $ 399(3 )

Rent expense interest factor

      94      98       139       126       169  
    
  
 
 
 

Total fixed charges (2)

    $ 822    $ 838     $ 945     $ 806     $ 568  
    
  
 
 
 

Ratio of earnings to fixed charges

      2.7      0.0(4 )     0.0(4 )     3.9       3.5  
    
  
 
 
 

 

(1) After adjustments required by Item 503(d) of SEC Regulation S-K.

 

(2) As defined in Item 503(d) of SEC Regulation S-K.

 

(3) The Company was a guarantor of Iridium’s $750 million guaranteed credit agreement. On November 15, 1999, the Company satisfied its guarantee obligations under this agreement by paying approximately $743 million to the banks providing loans under the agreement. Included with this payment was approximately $3 million in interest charges which have been aggregated in the 1999 total interest expense used for the calculation of total fixed charges.

 

(4) Earnings were inadequate to cover fixed charges for the years ended December 31, 2002 and 2001 by $3.4 billion and $5.4 billion, respectively.