1
EXHIBIT 12
IRIDIUM OPERATING L.L.C.
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
($ IN THOUSANDS)
PRIOR PERIOD
TO INITIAL
CAPITAL
CONTRIBUTION DATE PERIODS FOLLOWING INITIAL CAPITAL CONTRIBUTION DATE
------------------ -----------------------------------------------------
December 31,
January 1, 1993 July 29, 1993 to --------------------------
to July 28, 1993 December 31, 1993 1994 1995
---------------- ----------------- ----- -----
Fixed charges:
Capitalized interest ................. - - - -
Portion of rent expense representative
of interest (1) ...................... - 54 264 342
-------- ----- ------ ----
Total fixed charges................. - 54 264 342
======== ===== ===== ===
Earnings:
Loss before income taxes........... (5,309) (6,751) (13,309) (21,961)
Fixed charges, less capitalized
interest......................... - 54 264 342
Amortization of capitalized
interest......................... - - - -
------- ------ ------ -----
Earnings adjusted
for fixed charges.............. (5,309) (6,697) (13,045) (21,619)
======== ====== ========= ========
Ratio of earnings to fixed charges... - - - -
Deficiency in earnings to cover
fixed charges...................... 5,309 6,751 13,309 21,961
PERIODS FOLLOWING INITIAL CAPITAL CONTRIBUTION DATE
-----------------------------------------------------
December 31, Nine
--------------------- Months Ended
1996 1997 September 30, 1998
----- ------ ------------------
Fixed charges:
Capitalized interest ................. 28,127 163,747 247,448
Portion of rent expense representative
of interest (1) ...................... 398 3,858 4,687
----- ------ -------
Total fixed charges................. 28,525 167,605 252,135
======= ======= ========
Earnings:
Loss before income taxes........... (69,009) (293,401) (812,510)
Fixed charges, less capitalized
interest......................... 398 3,858 4,687
Amortization of capitalized
interest......................... - 7,900 24,649
----- ------- -------
Earnings adjusted
for fixed charges.............. (68,611) (281,643) (787,861)
======= ======== =========
Ratio of earnings to fixed charges... - - -
Deficiency in earnings to cover
fixed charges...................... 97,136 449,248 1,039,996
- ------------
(1) One-third of rent expense is deemed to be representative of interest.