Exhibit 12.1.2
NEXTEL COMMUNICATIONS, INC. AND SUBSIDIARIES
STATEMENT REGARDING COMPUTATION OF RATIO OF EARNINGS
TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(dollars in millions)
Three
Months
Ended
Year Ended December 31, March 31,
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1998 1999 2000 2001 2002 2003
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(Loss) income from continuing operations before income tax
benefit (provision)(1) $(1,844) $(1,366) $ (848) $(2,760) $ 1,777 $ 262
Add:
Fixed charges 900 1,185 1,633 1,874 1,544 300
Less:
Interest capitalized 55 46 88 127 52 11
Preferred stock dividends on a pretax basis 134 192 209 233 205 28
Less:
Equity in losses of unconsolidated affiliates (12) (73) (152) (95) (76) (13)
Gain on deconsolidation of NII Holdings -- -- -- -- 1,218 --
Losses attributable to minority interests 17 19 10 1 -- --
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(Losses) earnings as adjusted $(1,138) $ (365) $ 630 $(1,152) $ 1,922 $ 536
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Preferred stock dividends $ 149 $ 192 $ 209 $ 233 $ 211 $ 30
Effective income tax rate 89.9% 100.0% 100.0% 100.0% 97.0% 92.0%
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Preferred stock dividends on a pretax basis $ 134 $ 192 $ 209 $ 233 $ 205 $ 28
Fixed charges:
Interest expense on indebtedness (including amortization
of debt expense and discount) $ 656 $ 878 $ 1,245 $ 1,403 $ 1,162 $ 225
Interest capitalized 55 46 88 127 52 11
Portion of rent expense representative of interest (30%) 55 69 91 111 125 36
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Fixed charges $ 900 $ 1,185 $ 1,633 $ 1,874 $ 1,544 $ 300
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Ratio of (losses) earnings to fixed charges (1.26) (0.31) 0.39 (0.61) 1.24 1.79
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(Deficiency) excess of earnings to cover fixed charges $(2,038) $(1,550) $(1,003) $(3,026) $ 378 $ 236
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(1) In April 2002, we adopted SFAS No. 145 "Recision of FASB Statements No. 4,
44, and 64, Amendment of FASB Statement No. 13, and Technical Corrections."
As a result of this adoption, the (loss) income from continuing operations
before income tax benefit (provision) has been adjusted to reclassify gains
and losses from extinguishments of debt as other income (expense) rather
than as extraordinary items for all periods presented.