EX-12 3 dex12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

Verizon South Inc.

 

 

EXHIBIT 12

 

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

    

Three Months Ended March 31, 2003

   

Years Ended December 31,

  

(Dollars in Millions)

      

2002

     

2001

     

2000

   

1999

   

1998

  

Income before provision for income taxes and cumulative effect of change in accounting principle

   

$

55.6

   

$

379.8

(a)(b)

   

$

547.5

(a)

   

$

438.6

   

$

470.1

   

$

455.5

(a)

Equity loss from affiliate

   

 

—  

   

 

—  

 

   

 

9.3

 

   

 

.3

   

 

—  

   

 

—  

 

Interest expense

   

 

20.3

   

 

73.5

 

   

 

73.0

 

   

 

81.8

   

 

68.6

   

 

68.0

 

Portion of rent expense representing interest

   

 

4.9

   

 

17.1

 

   

 

9.8

 

   

 

8.2

   

 

6.3

   

 

6.5

 

Amortization of capitalized interest

   

 

.1

   

 

.2

 

   

 

.2

 

   

 

.3

   

 

.2

   

 

.2

 

    
  
  
  
  
  

Earnings, as adjusted

   

$

80.9

   

$

470.6

 

   

$

639.8

 

   

$

529.2

   

$

545.2

   

$

530.2

 

    
  
  
  
  
  

Fixed charges:

                                                

Interest expense

   

$

20.3

   

$

73.5

 

   

$

73.0

 

   

$

81.8

   

$

68.6

   

$

68.0

 

Portion of rent expense representing interest

   

 

4.9

   

 

17.1

 

   

 

9.8

 

   

 

8.2

   

 

6.3

   

 

6.5

 

Capitalized interest

   

 

.1

   

 

.4

 

   

 

1.6

 

   

 

1.3

   

 

.9

   

 

.5

 

    
  
  
  
  
  

Fixed charges

   

$

25.3

   

$

91.0

 

   

$

84.4

 

   

$

91.3

   

$

75.8

   

$

75.0

 

    
  
  
  
  
  

Ratio of earnings to fixed charges

   

 

3.20

   

 

5.17

 

   

 

7.58

 

   

 

5.80

   

 

7.19

   

 

7.07

 

    
  
  
  
  
  
(a)   Restated in accordance with Statement of Financial Accounting Standards No. 145, “Rescission of FASB Statements No. 4, 44, and 64, Amendment of FASB Statement No. 13, and Technical Corrections.”
(b)   Excludes a gain of $1,665.6 million on sale of assets.