Exhibit 12
SPRINT NEXTEL CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND RATIO OF EARNINGS TO
COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
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| | For the Nine Months Ended September 30, | | | For the Years Ended December 31, | |
| | 2006 | | | 2005 | | | 2005 | | | 2004 | | | 2003 | | | 2002 | | | 2001 | |
| | (in millions) | |
Earnings | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations before income taxes | | $ | 1,053 | | | $ | 1,271 | | | $ | 1,291 | | | $ | (3,244 | ) | | $ | (2,149 | ) | | $ | (1,173 | ) | | $ | (4,047 | ) |
Capitalized interest | | | (66 | ) | | | (31 | ) | | | (53 | ) | | | (56 | ) | | | (58 | ) | | | (88 | ) | | | (108 | ) |
Net losses (earnings) in equity method investees | | | 1 | | | | (114 | ) | | | (107 | ) | | | 41 | | | | 79 | | | | 120 | | | | 175 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Subtotal | | | 988 | | | | 1,126 | | | | 1,131 | | | | (3,259 | ) | | | (2,128 | ) | | | (1,141 | ) | | | (3,980 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fixed charges | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest charges | | | 1,240 | | | | 927 | | | | 1,347 | | | | 1,274 | | | | 1,414 | | | | 1,458 | | | | 1,247 | |
Interest factor of operating rents | | | 473 | | | | 295 | | | | 450 | | | | 347 | | | | 360 | | | | 388 | | | | 368 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total fixed charges | | | 1,713 | | | | 1,222 | | | | 1,797 | | | | 1,621 | | | | 1,774 | | | | 1,846 | | | | 1,615 | |
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Earnings (loss), as adjusted | | $ | 2,701 | | | $ | 2,348 | | | $ | 2,928 | | | $ | (1,638 | ) | | $ | (354 | ) | | $ | 705 | | | $ | (2,365 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Preferred stock dividends paid | | | 2 | | | | 5 | | | | 7 | | | | 7 | | | | 7 | | | | 7 | | | | 7 | |
Total fixed charges | | | 1,713 | | | | 1,222 | | | | 1,797 | | | | 1,621 | | | | 1,774 | | | | 1,846 | | | | 1,615 | |
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Total fixed charges and preferred stock dividends | | | 1,715 | | | | 1,227 | | | | 1,804 | | | | 1,628 | | | | 1,781 | | | | 1,853 | | | | 1,622 | |
Ratio of earnings to fixed charges | | | 1.58 | | | | 1.92 | | | | 1.63 | | | | — | (1) | | | — | (2) | | | — | (3) | | | — | (4) |
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Ratio of earnings to combined fixed charges and preferred stock dividends | | | 1.57 | | | | 1.91 | | | | 1.62 | | | | — | (1) | | | — | (2) | | | — | (3) | | | — | (4) |
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(1) | Earnings, as adjusted, were inadequate to cover fixed charges and fixed charges and preferred stock dividends by $3.3 billion in 2004. |
(2) | Earnings, as adjusted, were inadequate to cover fixed charges and fixed charges and preferred stock dividends by $2.1 billion in 2003. |
(3) | Earnings, as adjusted, were inadequate to cover fixed charges and fixed charges and preferred stock dividends by $1.1 billion in 2002. |
(4) | Earnings, as adjusted, were inadequate to cover fixed charges and fixed charges and preferred stock dividends by $4.0 billion in 2001. |
Note: | The ratios of earnings to combined fixed charges and preferred stock dividends were computed by dividing fixed charges and pre-tax earnings required to cover preferred stock dividends into the sum of earnings (after certain adjustments) and fixed charges. Fixed charges include interest on all debt of continuing operations, including amortization of debt issuance costs, and the interest component of operating rents. Pre-tax earnings required to cover preferred stock dividends are calculated by dividing one less our effective income tax rate into preferred stock dividends. Earnings included Income from continuing operations before income taxes, plus (minus) net losses (earnings) in equity method investees, less capitalized interest. |