SPRINT 10-K 2007 FY Annual report

Exhibit 12

SPRINT NEXTEL CORPORATION

EXHIBIT 12

COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

	2007			2006			2005			2004			2003
	(in millions)
Earnings
Income (loss) from continuing operations before income taxes	$	(29,945	)	$	1,483		$	1,291		$	(3,244	)	$	(2,149	)
Capitalized interest		(127	)		(113	)		(53	)		(56	)		(58	)
Amortization of capitalized interest		72			107			98			86			70
Net losses (earnings) in equity method investees		3			6			(107	)		41			79
Subtotal		(29,997	)		1,483			1,229			(3,173	)		(2,058	)
Fixed charges
Interest charges		1,560			1,646			1,347			1,274			1,414
Interest factor of operating rents		653			596			395			347			360
Total fixed charges		2,213			2,242			1,742			1,621			1,774
Earnings (loss), as adjusted	$	(27,784	)	$	3,725		$	2,971		$	(1,552	)	$	(284	)
Preferred stock dividends paid	$	—		$	3		$	11		$	11		$	11
Total fixed charges		2,213			2,242			1,742			1,621			1,774
Total fixed charges and preferred stock dividends	$	2,213		$	2,245		$	1,753		$	1,632		$	1,785
Ratio of earnings to combined fixed charges and preferred stock dividends		—	(1)		1.66			1.69			—	(2)		—	(3)

(1) Earnings, as adjusted, were inadequate to cover fixed charges by $30.0 billion in 2007.

(2) Earnings, as adjusted, were inadequate to cover fixed charges and preferred stock dividends by $3.2 billion in 2004.

(3) Earnings, as adjusted, were inadequate to cover fixed charges and preferred stock dividends by $2.1 billion in 2003.

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, as adjusted for the tax benefits related to unallocated shares. Earnings include income from continuing operations before income taxes, plus net losses (earnings) in equity method investees, less capitalized interest.