EXHIBIT (12)
SPRINT CORPORATION
COMPUTATION OF RATIO OF
EARNINGS TO FIXED CHARGES
1997 1996 1995 1994 1993
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(in millions)
Earnings
Income from continuing operations before
taxes $ 1,583.0 $ 1,911.9 $ 1,480.4 $ 1,387.9 $ 813.1
Capitalized interest (93.0) (104.0) (57.0) (7.5) (7.3)
Equity in losses of less than 50 percent
owned entities 764.4 269.0 32.9 - -
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Subtotal 2,254.4 2,076.9 1,456.3 1,380.4 805.8
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Fixed charges
Interest charges 280.2 300.7 317.7 308.2 374.3
Interest factor of operating rents 136.1 119.2 120.1 111.5 117.4
Pre-tax cost of preferred stock
dividends of subsidiaries 0.3 0.4 0.7 0.9 1.6
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Total fixed charges 416.6 420.3 438.5 420.6 493.3
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Earnings, as adjusted $ 2,671.0 $ 2,497.2 $ 1,894.8 $ 1,801.0 $ 1,299.1
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Ratio of earnings to fixed charges 6.41 (1) 5.94 (2) 4.32 (3) 4.28 2.63 (4)
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(1) Earnings as computed for the ratio of earnings to fixed charges includes
nonrecurring items. These items include a litigation charge of $20 million,
gains on the sales of local exchanges of $45 million and a gain on the sale
of an equity investment in an equipment provider of $26 million. Excluding
these items, the ratio of earnings to fixed charges would have been 6.29
for 1997.
(2) Earnings as computed for the ratio of earnings to fixed charges includes
the nonrecurring charge related to litigation of $60 million recorded in
1996. Excluding this charge, the ratio of earnings to fixed charges would
have been 6.08 for 1996.
(3) Earnings as computed for the ratio of earnings to fixed charges includes
the nonrecurring restructuring charge of $88 million recorded in 1995.
Excluding this charge, the ratio of earnings to fixed charges would have
been 4.52 for 1995.
(4) Earnings as computed for the ratio of earnings to fixed charges includes
the nonrecurring merger, integration and restructuring costs of $293
million recorded in 1993. Excluding these costs, the ratio of earnings to
fixed charges would have been 3.23 for 1993.
Note: The ratios were computed by dividing fixed charges into the sum of
earnings (after certain adjustments) and fixed charges. Earnings
include income from continuing operations before taxes, plus equity in
the net losses of less-than-50%-owned entities, less capitalized
interest. Fixed charges include (a) interest on all debt of continuing
operations (including amortization of debt issuance costs), (b) the
interest component of operating rents, and (c) the pre-tax cost of
subsidiary preferred stock dividends.