EX-12 10 dex12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

EXHIBIT 12

 

Computation of Ratio of Earnings to Fixed Charges

Verizon Communications Inc. and Subsidiaries

 

          (dollars in millions)      
Years Ended December 31,         2005     2004     2003     2002      2001      

                 

Income before provision for income taxes, discontinued operations, extraordinary items, and cumulative effect of accounting change

        $  10,607     $  10,112     $  4,673     $    6,130      $  2,660      

Minority interest

        3,045     2,409     1,583     1,404      625      

Equity in (earnings) loss of unconsolidated businesses

        (689 )   (1,691 )   (1,278 )   1,547      (446 )    

Dividends from unconsolidated businesses

        2,336     162     198     97      178      

Interest expense

        2,180     2,384     2,797     3,130      3,276      

Portion of rent expense representing interest

        511     449     445     418      419      

Amortization of capitalized interest

        108     104     103     87      70      
    

Income, as adjusted

        $  18,098     $  13,929     $  8,521     $  12,813      $  6,782      
    

Fixed charges:

                                        

Interest expense

        $    2,180     $    2,384     $  2,797     $    3,130      $  3,276      

Portion of rent expense representing interest

        511     449     445     418      419      

Capitalized interest

        352     177     144     185      368      

Preferred stock dividend requirement

        9     8     12     18      61      
    

Fixed Charges

        $    3,052     $    3,018     $  3,398     $    3,751      $  4,124      
    

Ratio of Earnings to Fixed Charges

        5.93     4.62     2.51     3.42      1.64