Exhibit 12.1
NII HOLDINGS, INC. | |||||||||||||||||||
STATEMENT REGARDING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES | |||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||
2008 | 2009 | 2010 | 2011 | 2012 (1) | |||||||||||||||
Income (loss) from continuing operations before income tax | $ | 480,817 | $ | 572,204 | $ | 597,923 | $ | 569,385 | $ | (543,140 | ) | ||||||||
Add: | |||||||||||||||||||
Fixed charges | 269,020 | 290,952 | 423,578 | 481,238 | 593,981 | ||||||||||||||
Amortization of capitalized interest | 8,244 | 9,541 | 10,396 | 21,086 | 38,720 | ||||||||||||||
Less: | |||||||||||||||||||
Interest capitalized | 10,345 | 12,490 | 10,819 | 76,204 | 127,189 | ||||||||||||||
Equity in (losses) gains of unconsolidated affiliates | — | — | — | — | — | ||||||||||||||
Losses attributable to minority interests | — | — | — | — | — | ||||||||||||||
Earnings (losses) as adjusted | $ | 747,736 | $ | 860,207 | $ | 1,021,078 | $ | 995,505 | $ | (37,628 | ) | ||||||||
Fixed charges: | |||||||||||||||||||
Interest expense on indebtedness (including amortization of debt expense and discount) | $ | 205,516 | $ | 223,476 | $ | 344,999 | $ | 322,111 | $ | 373,253 | |||||||||
Interest capitalized | 10,345 | 12,490 | 10,819 | 76,204 | 127,189 | ||||||||||||||
Portion of rent expense representative of interest (30%) | 53,159 | 54,986 | 67,760 | 82,923 | 93,539 | ||||||||||||||
Fixed charges | $ | 269,020 | $ | 290,952 | $ | 423,578 | $ | 481,238 | $ | 593,981 | |||||||||
Ratio of earnings to fixed charges | 2.78 | 2.96 | 2.41 | 2.07 | — |
(1) Due to our loss from continuing operations before income tax for the year ended December 31, 2012, the ratio coverage was less than 1:1 for this period. We would have needed to generate approximately an additional $632.0 million in income from continuing operations before income tax to achieve coverage of 1:1 for the year ended December 31, 2012.