EX-12.1 6 0006.txt STATEMENT RE COMPUTATION OF RATIO OF EARNINGS EXHIBIT 12.1 WORLDCOM, INC. AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES (IN MILLIONS)
For the Nine Months Year Ended December 31, Ended September 30, ---------------------------------------------------- ------------------- 1995 1996 1997 1998 1999 2000 1999 ------ ------ ------ ------ ------ ------ ------ Earnings: Pretax income (loss) from continuing operations $ 376 $(2,272) $ 578 $(1,590) $ 7,164 $ 6,355 $ 4,796 Fixed charges, net of capitalized interest 285 315 500 774 1,098 822 866 ------- ------- ------- ------- ------- ------- ------- Earnings $ 661 $(1,957) $ 1,078 $ (816) $ 8,262 $ 7,177 $ 5,662 ======= ======= ====== ======= ======= ======= ======= Fixed Charges: Interest cost $ 270 $ 308 $ 538 $ 928 $ 1,287 $ 1,064 $ 994 Amortization of financing costs 4 4 2 12 18 18 13 Interest factor of rent expense 16 19 47 78 132 123 117 ------- ------- ------- ------- ------- ------- ------- Fixed charges $ 290 $ 331 $ 587 $ 1,018 $ 1,437 $ 1,205 $ 1,124 ======= ======= ====== ======= ======= ======= ======= Deficiency of earnings to fixed charges $ - $(2,288) $ - $(1,834) $ - $ - $ - Ratio of earnings to fixed charges (1) 2.28:1 - 1.84:1 - 5.75:1 5.96:1 5.04:1 ======= ======= ====== ======= ======= ======= =======
--------------------- (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 the Company believes to be representative of interest.