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)    Six Months Ended
June 30, 2011 		 

Earnings:

  

Income before provision for income taxes

   $     8,187  

Equity in earnings of unconsolidated businesses

     (222 ) 

Dividends from unconsolidated businesses

     27  

Interest expense (1)

      1,426  

Portion of rent expense representing interest

     404  

Amortization of capitalized interest

     72  
        

Earnings, as adjusted

   $     9,894  
        

Fixed Charges:

  

Interest expense (1)

    $     1,426  

Portion of rent expense representing interest

     404  

Capitalized interest

     231  
        

Fixed Charges

   $     2,061  
        

Ratio of earnings to fixed charges

     4.80   
        

 

(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.