EX-12 3 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)   

Nine months Ended

September 30, 2006

  
   

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

    $     7,247  

Minority interest

    2,942  

Equity in earnings of unconsolidated businesses

    (616 )

Dividends from unconsolidated businesses

    29  

Interest expense

    1,798  

Portion of rent expense representing interest

    414  

Amortization of capitalized interest

    82  
      

Income, as adjusted

    $  11,896  
      

Fixed charges:

   

Interest expense

    $    1,798  

Portion of rent expense representing interest

    414  

Capitalized interest

    350  

Preferred stock dividend requirement (1)

    2  
      

Fixed charges

    $    2,564  
      

Ratio of earnings to fixed charges

    4.64  
      

 

(1)

On January 15, 2006, Verizon redeemed $100 million Verizon International Holding Ltd. Series A variable term voting cumulative preferred stock and paid its last dividend.