EX-12.2 5 dex122.txt COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES 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 combined 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.