EX-12 3 d622994dex12.htm EXHIBIT 12 Exhibit 12

EXHIBIT 12

Computation of Ratio of Earnings to Fixed Charges

Verizon Communications Inc. and Subsidiaries

 

     (dollars in millions)   
Years Ended December 31,    2013     2012     2011     2010     2009  

Earnings:

           

Income before (provision) benefit for income taxes

    $ 29,277     $ 9,897     $ 10,483     $ 12,684     $ 13,520  

Equity in earnings of unconsolidated businesses

      (142 )      (324 )      (444 )      (508 )      (553 ) 

Dividends from unconsolidated businesses

      40       401       480       510       942  

Interest expense (1)

      2,667       2,571       2,827       2,523       3,102  

Portion of rent expense representing interest

      851       837       817       837       839  

Amortization of capitalized interest

      177       162       148       139       134  
  

 

 

  

Earnings, as adjusted

    $   32,870     $   13,544     $   14,311     $   16,185     $   17,984  
  

 

 

  

Fixed Charges:

           

Interest expense (1)

    $ 2,667     $ 2,571     $ 2,827     $ 2,523     $ 3,102  

Portion of rent expense representing interest

      851       837       817       837       839  

Capitalized interest

      754       406       442       964       927  
  

 

 

  

Fixed Charges

    $ 4,272     $ 3,814     $ 4,086     $ 4,324     $ 4,868  
  

 

 

  

Ratio of earnings to fixed charges

      7.69       3.55       3.50       3.74       3.69  
  

 

 

  

 

(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.