Exhibit 12.1
HUGHES SATELLITE SYSTEMS CORPORATION
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in thousands)
| For the Years Ended December 31, | ||||||||||||||||||||
| 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
| Earnings: | ||||||||||||||||||||
| Income (loss) before income taxes | $ | 195,480 | $ | 211,348 | $ | 142,677 | $ | (70,348 | ) | $ | (23,121 | ) | ||||||||
| Equity in earnings of affiliate | (9,444 | ) | (8,502 | ) | (5,121 | ) | (4,288 | ) | (2,540 | ) | ||||||||||
| Interest expense, net of amounts capitalized | 187,198 | 169,150 | 191,258 | 197,062 | 153,955 | |||||||||||||||
| Amortization of ESS capitalized interest (estimate) | 526 | 2,023 | 3,668 | 4,116 | 3,716 | |||||||||||||||
| Amortization of Jupiter I capitalized interest (estimate) | 5,732 | 5,732 | 5,732 | 5,732 | 1,433 | |||||||||||||||
| Amortization of Spaceway capitalized interest (estimate) | 1,348 | 1,400 | 1,286 | 1,295 | 1,321 | |||||||||||||||
| Interest component of rent expense (1) | 676 | 685 | 674 | 727 | 723 | |||||||||||||||
| Earnings before fixed charges | $ | 381,516 | $ | 381,836 | $ | 340,174 | $ | 134,296 | $ | 135,487 | ||||||||||
| Fixed Charges: | ||||||||||||||||||||
| Interest expense (net of amounts capitalized) | 187,198 | 169,150 | 191,258 | 197,062 | 153,955 | |||||||||||||||
| Capitalized interest | 30,202 | 15,852 | 2,168 | — | 45,058 | |||||||||||||||
| Interest component of rent expense (1) | 676 | 685 | 674 | 727 | 723 | |||||||||||||||
| Total fixed charges | $ | 218,076 | $ | 185,687 | $ | 194,100 | $ | 197,789 | $ | 199,736 | ||||||||||
| Ratio of earnings to fixed charges | 1.75 | 2.06 | 1.75 | — | — | |||||||||||||||
| Deficiency of available earnings to fixed charges | $ | — | $ | — | $ | — | $ | (63,493 | ) | $ | (64,249 | ) | ||||||||
| (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 during each respective period. |