Exhibit 12
STATEMENT REGARDING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND
PREFERRED STOCK DIVIDENDS
LEVEL 3 COMMUNICATIONS, INC.
Three Months Ended | Fiscal Year Ended | |||||||||||||||||||||||||||
| 2003 | 2002 | 2002 | 2001 | 2000 | 1999 | 1998 | ||||||||||||||||||||||
Earnings (Loss) from Continuing Operations Before Taxes | $ | 114 | $ | (209 | ) | $ | (979 | ) | $ | (4,373 | ) | $ | (1,456 | ) | $ | (702 | ) | $ | (153 | ) | ||||||||
(Earnings) Losses of Equity Investees | — | (4 | ) | (13 | ) | (16 | ) | 284 | 128 | 131 | ||||||||||||||||||
Interest on Debt, Net of Capitalized Interest | 140 | 130 | 560 | 646 | 282 | 174 | 133 | |||||||||||||||||||||
Amortization of Capitalized Interest | 17 | 17 | 68 | 68 | 19 | — | — | |||||||||||||||||||||
Interest Expense Portion of Rental Expense | 8 | 4 | 23 | 20 | 15 | 12 | 6 | |||||||||||||||||||||
Earnings (Losses) Available for Fixed Charges | $ | 279 | $ | (62 | ) | $ | (341 | ) | $ | (3,655 | ) | $ | (856 | ) | $ | (388 | ) | $ | 117 | |||||||||
Interest on Debt | $ | 140 | $ | 130 | $ | 560 | $ | 703 | $ | 635 | $ | 289 | $ | 147 | ||||||||||||||
Preferred Dividends | — | — | — | — | — | — | — | |||||||||||||||||||||
Interest Expense Portion of Rental Expense | 8 | 4 | 23 | 20 | 15 | 12 | 6 | |||||||||||||||||||||
Total Fixed Charges | $ | 148 | $ | 134 | $ | 583 | $ | 723 | $ | 650 | $ | 301 | $ | 153 | ||||||||||||||
Ratio of Earnings to Fixed Charges | 1.88 | — | — | — | — | — | — | |||||||||||||||||||||
Deficiency | $ | — | $ | (196 | ) | $ | (924 | ) | $ | (4,378 | ) | $ | (1,506 | ) | $ | (689 | ) | $ | (36 | ) | ||||||||
Upon adoption of Statement of Financial Accounting Standards No. 145, “Recission of Financial Accounting Standards Board Statements No. 4, 44, and 64, Amendment of FASB Statement No. 13, and Technical Corrections”, in 2003, due to the recurring nature of its debt repurchases and exchanges, the Company reclassified the related gains previously classified as extraordinary gains to Other income within Loss from Continuing Operations Before Income Tax of $130 million for the three months ended March 31, 2002, $255 million for the year ended December 31, 2002 and $1,075 million for the year ended December 31, 2001.
