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)

 

     Years Ended December 31,  
     2009     2008     2007     2006     2005  
     (Dollars in millions)  

Income before income taxes and cumulative effect of changes in accounting principles

    $ 1,921      $ 2,267      $ 2,440      $ 1,882      $ 1,628   

Add: estimated fixed charges

      705        671        682        700        700   

Add: estimated amortization of capitalized interest

      11        12        10        10        12   

Less: interest capitalized

      (10 )      (14 )      (12 )      (12 )      (10 ) 
                                        

Total earnings available for fixed charges

    $ 2,627      $ 2,936      $ 3,120      $ 2,580      $ 2,330   
                                        

Estimate of interest factor on rentals

    $ 63      $ 68      $ 62      $ 72      $ 82   

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

      632        589        608        616        608   

Interest capitalized

      10        14        12        12        10   
                                        

Total fixed charges

    $ 705      $ 671      $ 682      $ 700      $ 700   
                                        

Ratio of earnings to fixed charges

      3.7        4.4        4.6        3.7        3.3   

 

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