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, 2010

  

Earnings:

   

Income before provision for income taxes

    $ 8,588   

Equity in earnings of unconsolidated businesses

      (395 ) 

Dividends from unconsolidated businesses

      477   

Interest expense (1)

      1,956   

Portion of rent expense representing interest

      645   

Amortization of capitalized interest

      103   
        

Earnings, as adjusted

    $ 11,374   
        

Fixed Charges:

   

Interest expense (1)

    $ 1,956   

Portion of rent expense representing interest

      645   

Capitalized interest

      693   
        

Fixed Charges

    $ 3,294   
        

Ratio of earnings to fixed charges

      3.45   
        

 

(1)

We classify interest expense recognized on uncertain tax positions as income tax expense and therefore such interest expense is not included in the Ratio of Earnings to Fixed Charges.