EX-12 2 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, 2007   

Income before provision for income taxes, discontinued operations and extraordinary item

      $ 7,661   

Minority interest

      3,720   

Equity in earnings of unconsolidated businesses

      (492)  

Dividends from unconsolidated businesses

      224   

Interest expense (1)

      1,390   

Portion of rent expense representing interest

      415   

Amortization of capitalized interest

      86   
      

Income, as adjusted

      $ 13,004   
      

Fixed charges:

   

Interest expense (1)

      $ 1,390   

Portion of rent expense representing interest

      415   

Capitalized interest

      332   
      

Fixed charges

      $ 2,137   
      

Ratio of earnings to fixed charges

      6.09   
      

 

(1)

Verizon adopted FIN 48 on January 1, 2007 (see Note 3 of the Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q). Our policy is to classify interest expense recognized on uncertain tax positions as income tax expense. We have excluded interest expense recognized on uncertain tax positions from the Ratio of Earnings to Fixed Charges.