EX-12.1 3 d57211exv12w1.htm STATEMENT REGARDING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES exv12w1
Exhibit 12. 1
Ratio of Earnings to Fixed Charges
Exhibit 12.1
Echostar DBS Corporation
Ratio of Earnings to Fixed Charges

(in thousands)
                                                         
                                            For the Three Months  
                                            Ended March 31,  
    For the Years Ended December 31,     (unaudited)  
    2007     2006     2005     2004     2003     2008     2007  
Income (loss) before taxes
  $ 1,344,570     $ 934,521     $ 1,029,339     $ 310,478     $ 333,114     $ 428,664     $ 276,580  
 
                                                       
Interest expense (net of amounts capitalized)
    372,612       389,993       305,265       433,364       407,030       87,841       90,005  
Amortization of capitalized interest (estimate)
    12,188       11,771       11,052       11,052       14,455       1,359       3,003  
Interest component of rent expense (1)
    2,580       2,430       2,328       2,110       1,515       635       201  
 
                                         
Earnings before fixed charges
  $ 1,731,950     $ 1,338,715     $ 1,347,984     $ 757,004     $ 756,114     $ 518,499     $ 369,789  
 
                                         
 
                                                       
Interest expense (net of amounts capitalized)
  $ 372,612     $ 389,993     $ 305,265     $ 433,364     $ 407,030     $ 87,841     $ 90,005  
Capitalized interest
    7,434       12,079                   8,428       1,845       2,661  
 
                                                       
Interest component of rent expense (1)
    2,580       2,430       2,328       2,110       1,515       635       201  
 
                                         
Total fixed charges
  $ 382,626     $ 404,502     $ 307,593     $ 435,474     $ 416,973     $ 90,321     $ 92,867  
 
                                         
 
                                                       
Ratio of earnings to fixed charges
    4.53       3.31       4.38       1.74       1.81       5.74       3.98  
 
                                         
 
(1)   The interest component of rent expense has been estimated by taking the difference between our gross rent expense and the net present value of our rent expense using the weighted average cost of debt for our senior notes during each respective period. The rates applied are approximately 9% for the year ended December 31, 2003 and approximately 7% for the years ended December 31, 2004 through December 31, 2007 and for the three months ended March 31, 2007 and 2008.

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