EX-12.2 5 a2043540zex-12_2.txt EXHIBIT 12.2 EXHIBIT 12.2 WORLDCOM, INC. AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES (IN MILLIONS)
Year Ended December 31, ------------------------------------------------- 1996 1997 1998 1999 2000 ------- ------- ------- ------- ------- EARNINGS: Pretax income (loss) from continuing operations $(2,272) $ 578 $(1,590) $ 7,164 $ 7,568 Fixed charges, net of capitalized interest 315 500 774 1,098 1,120 ------- ------- ------- ------- ------- Earnings $(1,957) $ 1,078 $ (816) $ 8,262 $ 8,688 ======= ======= ======= ======= ======= FIXED CHARGES: Interest cost $ 308 $ 538 $ 928 $ 1,287 $ 1,480 Amortization of financing costs 4 2 12 18 26 Interest factor of rent expense 19 47 78 132 149 ------- ------- ------- ------- ------- Fixed charges $ 331 $ 587 $ 1,018 $ 1,437 $ 1,655 ======= ======= ======= ======= ======= Deficiency of earnings to fixed charges $(2,288) $ -- $(1,834) $ -- $ -- Ratio of earnings to fixed charges (1) -- 1.84:1 -- 5.75:1 5.25:1 ======= ======= ======= ======= =======
(1) For the purpose of computing the ratio of earnings to fixed charges, earnings consist of pre-tax income (loss) from continuing operations, excluding minority interests in gains/losses of consolidated subsidiaries, and fixed charges consist of pre-tax interest (including capitalized interest) on all indebtedness, amortization of debt discount and expense, and that portion of rental expense that we believe to be representative of interest.