EX-12.1 4 dex121.txt COMP. OF RATIO OF EARNINGS EXHIBIT 12.1 WORLDCOM, INC. AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERENCE DIVIDENDS (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 Preference dividends................... 20 63 67 115 103 ------- ------ ------- ------ ------ Fixed charges........................ $ 351 $ 650 $ 1,085 $1,552 $1,758 ======= ====== ======= ====== ====== Deficiency of earnings to fixed charges............................... $(2,308) $ -- $(1,901) $ -- $ -- Ratio of earnings to fixed charges(1).. -- 1.66:1 -- 5.32:1 4.94:1 ======= ====== ======= ====== ======
-------- (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 we believe 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 our effective tax rate.