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

(UNAUDITED)

 

     Nine Months
Ended
September 30,
2008		     Years Ended December 31,  
       2007     2006     2005  
     (Dollars in millions)  

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

    $ 1,708     $ 2,440     $ 1,882     $ 1,628  

Add: estimated fixed charges

      506       682       700       700  

Add: estimated amortization of capitalized interest

      9       10       10       12  

Less: interest capitalized

      (11 )     (12 )     (12 )     (10 )
                                

Total earnings available for fixed charges

    $ 2,212     $ 3,120     $ 2,580     $ 2,330  
                                

Estimate of interest factor on rentals

    $ 51     $ 62     $ 72     $ 82  

Interest expense, including amortization of premiums, discounts and debt issuance costs(1)

      444       608       616       608  

Interest capitalized

      11       12       12       10  
                                

Total fixed charges

    $ 506     $ 682     $ 700     $ 700  
                                

Ratio of earnings to fixed charges

      4.4       4.6       3.7       3.3  

 

(1)

Interest expense includes only interest related to long-term borrowings and capital lease obligations.