Exhibit 12.1
Calculation of Ratio of Earnings to Fixed Charges
| Year Ended December 31, | Nine Months Ended | |||||||||||||||||||||||
| (dollars in millions) | 2008 | 2009 | 2010 | 2011 | 2012 | September 30, 2013 | ||||||||||||||||||
| Earnings available for fixed charges: |
||||||||||||||||||||||||
| Income (loss) before income taxes and earnings from unconsolidated affiliates |
$ | 2,982 | $ | 2,328 | $ | 2,180 | $ | (4,919 | ) | $ | (6,991 | ) | $ | 220 | ||||||||||
| Adjustments: |
||||||||||||||||||||||||
| Fixed charges |
1,172 | 1,562 | 1,395 | 1,487 | 1,474 | 1,555 | ||||||||||||||||||
| Amortization of capitalized interest |
14 | 24 | 27 | 31 | 34 | 26 | ||||||||||||||||||
| Capitalized interest |
(86 | ) | (56 | ) | (35 | ) | (24 | ) | (9 | ) | (3 | ) | ||||||||||||
| Earnings from Non-Controlling Interests |
(6 | ) | (6 | ) | (3 | ) | | | | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Earnings available for fixed charges |
$ | 4,076 | $ | 3,852 | $ | 3,564 | $ | (3,425 | ) | $ | (5,492 | ) | $ | 1,798 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Fixed charges: |
||||||||||||||||||||||||
| Interest expense including capitalized interest |
$ | 489 | $ | 796 | $ | 591 | $ | 694 | $ | 686 | $ | 899 | ||||||||||||
| Portion of rent expense representative of interest (1) |
683 | 766 | 804 | 793 | 788 | 656 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Fixed charges |
$ | 1,172 | $ | 1,562 | $ | 1,395 | $ | 1,487 | $ | 1,474 | $ | 1,555 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Ratio of earnings to fixed charges (2) |
3.48 | 2.47 | 2.55 | | | 1.16 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| (1) | The portion of operating rental expense that management believes is representative of interest is estimated to be 33%. |
| (2) | Due primarily to T-Mobiles non-cash impairment charges in the years ended December 31, 2012 and 2011, the ratio coverage was less than 1:1 in each of these periods. The Company would have needed to generate additional earnings of $7.0 billion and $4.9 billion in the year ended December 31, 2012 and 2011, respectively, to achieve a coverage of 1:1 in each of these periods. |