EX-12 2 d257450dex12.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,    2011     2010     2009     2008     2007  

Earnings:

           

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

    $ 10,483     $ 12,684     $ 13,520     $ 1,643     $ 16,783  

Equity in earnings of unconsolidated businesses

      (444 )      (508 )      (553 )      (567 )      (585)   

Dividends from unconsolidated businesses

      480       510       942       779       2,571  

Interest expense (1)

      2,827       2,523       3,102       1,819       1,829  

Portion of rent expense representing interest

      817       837       839       734       684  

Amortization of capitalized interest

      148       139       134       125       115  
  

 

 

  

Earnings, as adjusted

    $ 14,311     $ 16,185     $ 17,984     $ 4,533     $ 21,397  
  

 

 

  

Fixed Charges:

           

Interest expense (1)

    $ 2,827     $ 2,523     $ 3,102     $ 1,819     $ 1,829  

Portion of rent expense representing interest

      817       837       839       734       684  

Capitalized interest

      442       964       927       747       429  
  

 

 

  

Fixed Charges

    $ 4,086     $ 4,324     $ 4,868     $ 3,300     $ 2,942  
  

 

 

  

Ratio of earnings to fixed charges

      3.50       3.74       3.69       1.37       7.27  
  

 

 

  

 

(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.