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EXHIBIT 12
IRIDIUM OPERATING LLC
(A WHOLLY-OWNED SUBSIDIARY OF IRIDIUM LLC)
(A DEVELOPMENT STAGE LIMITED LIABILITY COMPANY)
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
($ IN THOUSANDS)
PERIODS FOLLOWING INITIAL CAPITAL CONTRIBUTION DATE
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YEAR ENDED JANUARY 1, JULY 29, 1993 TO DECEMBER 31,
DECEMBER 31, 1993 DECEMBER 31, ---------------------------
1992 TO JULY 28, 1993 1993 1994 1995 1996 1997
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Fixed charges:
Capitalized Interest....... -- -- -- -- -- 28,127 163,747
Portion of rent expense
representative of
interest(1).............. -- -- 54 264 342 398 2,607
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Total fixed
charges............ -- -- 54 264 342 28,525 166,354
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Earnings:
Loss before income taxes... (8,773) (5,309) (6,751) (13,309) (21,961) (69,009) (293,401)
Fixed charges, less
capitalized interest..... -- -- 54 264 342 398 2,607
------ ------ ------ ------- ------- ------- --------
Earnings adjusted for
fixed charges.......... (8,773) (5,309) (6,697) (13,045) (21,619) (68,611) (290,744)
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Ratio of earnings to fixed
charges.................... -- -- -- -- -- -- --
Deficiency in earnings to
cover fixed charges........ 8,773 5,309 6,751 13,309 21,961 97,136 457,148
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(1) One-third of rent expense is deemed to be representative of interest.