EX-12.1 3 a2069487zex-12_1.htm EXHIBIT 12.1
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EXHIBIT 12.1


QWEST COMMUNICATIONS INTERNATIONAL INC.
RATIO OF EARNINGS TO FIXED CHARGES(1)
(Dollars in millions)

 
  Year Ended December 31,
 
 
  1997
  1998
  1999
  2000
  2001
 
Income (loss) before income taxes, extraordinary item and cumulative effect of change in accounting principle   $ 2,429   $ 2,419   $ 1,902   $ 126   $ (3,958 )
Interest expense (net of amounts capitalized)     405     543     736     1,041     1,442  
Interest factor on rentals (1/3)     91     70     92     137     151  
   
 
 
 
 
 
  Subtotal earnings     2,925     3,032     2,730     1,304     (2,365 )
Add: Losses from equity method affiliates                 41     3,170  
   
 
 
 
 
 
Total earnings   $ 2,925   $ 3,032   $ 2,730   $ 1,345   $ 805  
   
 
 
 
 
 

Gross interest expense

 

$

425

 

$

568

 

$

763

 

$

1,145

 

$

1,629

 
Interest factor on rentals (1/3)     91     70     92     137     151  
   
 
 
 
 
 
Fixed charges   $ 516   $ 638   $ 855   $ 1,282   $ 1,780  
   
 
 
 
 
 

Ratio of earnings to fixed charges or (coverage deficiency)

 

 

5.67

 

 

4.75

 

 

3.19

 

 

1.05

 

$

(975

)
   
 
 
 
 
 

Note (1):
"Earnings" is computed by adding income before income taxes, extraordinary items and cumulative effect of change in accounting principle and fixed charges. Also included in earnings is the add-back of Qwest's share of losses in its equity method affiliates. "Fixed charges" consist of interest on indebtedness and the portion of rentals representative of the interest factor.

Note (2):
For the year ended December 31, 2001, the ratio of earnings to fixed charges was calculated as a negative ratio. As a result, disclosed above is the calculation of the coverage deficiency. For the purposes of this calculation we have included the impact of the $3.048 billion write-down of the investment in KPNQwest that occurred during the second quarter of 2001, as an add-back of Qwest's share of losses in its equity method affiliates.




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QWEST COMMUNICATIONS INTERNATIONAL INC. RATIO OF EARNINGS TO FIXED CHARGES(1) (Dollars in millions)