Exhibit 12.1
Calculation of Ratio of Earnings to Fixed Charges
| Year Ended December 31, | Three Months Ended | |||||||||||||||||||||||
| (dollars in millions) | 2008 | 2009 | 2010 | 2011 | 2012 | March 31, 2013 | ||||||||||||||||||
Earnings available for fixed charges: | ||||||||||||||||||||||||
Income (loss) before income taxes and earnings from unconsolidated affiliates | $ | 2,982 | $ | 2,328 | $ | 2,180 | $ | (4,919 | ) | $ | (6,991 | ) | $ | 189 | ||||||||||
Adjustments: | ||||||||||||||||||||||||
Fixed charges | 1,172 | 1,562 | 1,395 | 1,487 | 1,474 | 428 | ||||||||||||||||||
Amortization of capitalized interest | 14 | 24 | 27 | 31 | 34 | 8 | ||||||||||||||||||
Capitalized interest | (86 | ) | (56 | ) | (35 | ) | (24 | ) | (9 | ) | (1 | ) | ||||||||||||
Earnings from Non-Controlling Interests | (6 | ) | (6 | ) | (3 | ) | — | — | — | |||||||||||||||
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Earnings available for fixed charges | $ | 4,076 | $ | 3,852 | $ | 3,564 | $ | (3,425 | ) | $ | (5,492 | ) | $ | 624 | ||||||||||
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Fixed charges: | ||||||||||||||||||||||||
Interest expense including capitalized interest | $ | 489 | $ | 796 | $ | 591 | $ | 694 | $ | 686 | $ | 230 | ||||||||||||
Portion of rent expense representative of interest (1) | 683 | 766 | 804 | 793 | 788 | 198 | ||||||||||||||||||
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Fixed charges | $ | 1,172 | $ | 1,562 | $ | 1,395 | $ | 1,487 | $ | 1,474 | $ | 428 | ||||||||||||
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Ratio of earnings to fixed charges (2) | 3.48 | 2.47 | 2.55 | — | — | 1.46 | ||||||||||||||||||
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| (1) | The portion of operating rental expense that management believes is representative of interest is estimated to be 33%. |
| (2) | Due primarily to T-Mobile’s non-cash impairment charges in the years ended December 31, 2012 and 2011, the ratio coverage was less than 1:1 in each of these periods. The Company would have needed to generate additional earnings of $7.0 billion and $4.9 billion in the year ended December 31, 2012 and 2011, respectively, to achieve a coverage of 1:1 in each of these periods. |