EX-12.1 4 0004.txt COMP RATIO EARNINGS TO COMBINED FIXED CGS PREF DIV EXHIBIT 12.1 WORLDCOM, INC. AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERENCE DIVIDENDS (in millions)
For the six months ended June Year ended December 31, 30, ------------------------------------------- ---------- 1995 1996 1997 1998 1999 2000 ------- -------- ------- -------- ------- ---------- Earnings: Pretax income (loss) from continuing operations............. $ 376 $ (2,272) $ 578 $ (1,590) $ 7,164 $ 4,619 Fixed charges, net of capitalized interest... 285 315 500 774 1,098 537 ------- -------- ------- -------- ------- ------- Earnings.............. $ 661 $ (1,957) $ 1,078 $ (816) $ 8,262 $ 5,156 ======= ======== ======= ======== ======= ======= Fixed Charges: Interest cost........... $ 270 $ 308 $ 538 $ 928 $ 1,287 $ 675 Amortization of financing costs........ 4 4 2 12 18 10 Interest factor of rent expense................ 16 19 47 78 132 84 Preference dividends.... 67 20 63 67 115 52 ------- -------- ------- -------- ------- ------- Fixed charges......... $ 357 $ 351 $ 650 $ 1,085 $ 1,552 $ 821 ======= ======== ======= ======== ======= ======= Deficiency of earnings to fixed charges....... $ -- $ (2,308) $ -- $ (1,901) $ -- $ -- Ratio of earnings to fixed charges (1)...... 1.85:1 -- 1.66:1 -- 5.32:1 6.28:1 ======= ======== ======= ======== ======= =======
-------- (1) For the purpose of computing the ratio of earnings to combined fixed charges and preference dividends, 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, that portion of rental expense that WorldCom believes to be representative of interest, and distributions on subsidiary trust and other mandatorily redeemable preferred securities and preferred dividends, both of which have been grossed up to a pre-tax basis utilizing WorldCom's effective tax rate.