EX-12 2 dex12.htm CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES Calculation of Ratio of Earnings to Fixed Charges

Exhibit 12

 

QWEST CORPORATION

CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES

(DOLLARS IN MILLIONS)

 

     Nine Months
Ended
September 30,


    Years Ended December 31,

 
     2005

    2004

    2003

    2002

    2001

    2000

 

Income from continuing operations before income taxes, discontinued operations and cumulative effect of change in accounting principle effect

   $ 1,164     $ 1,742     $ 1,758     $ 2,435     $ 2,833     $ 2,203  

Add: estimated fixed charges

     503       647       643       634       588       588  

Add: estimated amortization of capitalized interest

     9       10       13       14       15       12  

Less: interest capitalized

     (5 )     (9 )     (13 )     (24 )     (44 )     (49 )
    


 


 


 


 


 


Total earnings available for fixed charges

   $ 1,671       2,390       2,401       3,059       3,392       2,754  

Estimate of interest factor on rentals

     43       54       57       69       79       81  

Interest expense, including amortization of premiums, discounts and debt issuance costs

     455       584       573       541       465       458  

Interest capitalized

     5       9       13       24       44       49  
    


 


 


 


 


 


Total fixed charges

   $ 503     $ 647     $ 643     $ 634     $ 588     $ 588  
    


 


 


 


 


 


Ratio of earnings to fixed charges

     3.3       3.7       3.7       4.8       5.8       4.7  

Until May 1, 2004, Qwest Corporation provided wireless services through its wholly owned subsidiary, Qwest Wireless LLC (“Qwest Wireless”). On May 1, 2004, we transferred ownership of Qwest Wireless to an affiliate. As a consequence, we no longer have wireless operations, and the results of operations and the financial position of Qwest Wireless have been reclassified in our consolidated financial statements to be included in discontinued operations. Amounts shown in this schedule have also been revised to conform to the current presentation of our consolidated financial statements.