EX-12 4 d03879exv12.htm EX-12 COMPUTATION OF RATIO OF EARNINGS exv12
 

EXHIBIT 12

Computation of Ratio of Earnings to Fixed Charges
Verizon Communications Inc. and Subsidiaries

                                         
                          (dollars in millions)  
Years Ended December 31,   2002     2001     2000     1999     1998  
Income before provision for income taxes, extraordinary items, and cumulative effect of accounting change
   $ 6,202           $ 2,766           $ 17,819           $ 13,168        $ 8,801  
Minority interest
     1,270             622             216             79             182  
(Income) loss from unconsolidated businesses(1)
     1,306             (727 )           (3,792 )           (511 )           216  
Dividends from unconsolidated businesses
     182             244             215             336             353  
Interest expense
     3,237             3,369             3,502             2,638             2,746  
Portion of rent expense representing interest
     435             427             351             336             340  
Amortization of capitalized interest
     87             70             52             33             25  
   
Income, as adjusted
   $ 12,719           $ 6,771        $ 18,363           $ 16,079           $ 12,663  
   
Fixed charges:
                                        
Interest expense, including interest related to lease financing activities
   $ 3,237           $ 3,369           $ 3,502           $ 2,638           $ 2,746  
Portion of rent expense representing interest
     435             427             351             336             340  
Capitalized interest
     185             368             230             146             117  
Preferred stock dividend requirement
     10             36             26             106             119  
   
Fixed Charges
   $ 3,867           $ 4,200           $ 4,109           $ 3,226           $ 3,322  
   
Ratio of Earnings to Fixed Charges
     3.29             1.61             4.47             4.98             3.81  
   

(1)   Excludes net losses related to cost method investments of $3,108 million and $5,769 million for the years ended December 31, 2002 and 2001, respectively, which reduce income before provision for income taxes, extraordinary items and cumulative effect of accounting change.