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)

(Unaudited)

 

     Years Ended December 31,

 
     2005

    2004

    2003

    2002

    2001

 

Income from continuing operations before income taxes, discontinued operations and cumulative effect of changes in accounting principles

   $ 1,530     $ 1,742     $ 1,758     $ 2,435     $ 2,833  

Add: estimated fixed charges

     668       647       643       634       588  

Add: estimated amortization of capitalized interest

     12       12       13       14       14  

Less: interest capitalized

     (7 )     (9 )     (13 )     (24 )     (44 )
    


 


 


 


 


Total earnings available for fixed charges

     2,203       2,392       2,401       3,059       3,391  

Estimate of interest factor on rentals

     54       54       57       69       79  

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

     607       584       573       541       465  

Interest capitalized

     7       9       13       24       44  
    


 


 


 


 


Total fixed charges

   $ 668     $ 647     $ 643     $ 634     $ 588  
    


 


 


 


 


Ratio of earnings to fixed charges

     3.3       3.7       3.7       4.8       5.8  
    


 


 


 


 


 

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 exhibit have also been revised to conform to the current presentation of our consolidated financial statements.