EX-12.1 8 ex12-1.txt COMPUTATION OF RATIO EXHIBIT 12.1 WORLDCOM, INC. AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (IN MILLIONS)
For the Six Months Year Ended December 31, Ended June 30, -------------------------------------------------- ------------------ 1996 1997 1998 1999 2000 2000 2001 ------- ------- -------- ------- ------- ------- -------- EARNINGS: Pretax income (loss) from continuing operations $(2,272) $ 578 $ (1,590) $ 7,164 $ 7,568 $ 4,577 $ 1,151 Fixed charges, net of capitalized interest 315 500 774 1,098 1,120 537 742 ------- ------- -------- ------- ------- ------- ------- Earnings $(1,957) $ 1,078 $ (816) $ 8,262 $ 8,688 $ 5,114 $ 1,893 ======= ======= ======== ======= ======= ======= ======= FIXED CHARGES: Interest cost $ 308 $ 538 $ 928 $ 1,287 $ 1,480 $ 675 $ 890 Amortization of financing costs 4 2 12 18 26 10 18 Interest factor of rent expense 19 47 78 132 149 84 90 ------- ------- -------- ------- ------- ------- ------- Fixed charges $ 331 $ 587 $ 1,018 $ 1,437 $ 1,655 $ 769 $ 998 ======= ======= ======== ======= ======= ======= ======= Deficiency of earnings to fixed charges $(2,288) $ -- $ (1,834) $ -- $ -- $ -- $ -- Ratio of earnings to fixed charges (1) -- 1.84:1 -- 5.75:1 5.25:1 6.65:1 1.90:1 ======= ======= ======== ======= ======= ======= =======
---------- (1) For the purpose of computing the ratio of earnings to fixed charges, earnings consist of pre-tax income (loss) from continuing operations, excluding minority interests in gains/losses of consolidated subsidiaries, and fixed charges consist of pre-tax interest (including capitalized interest) on all indebtedness, amortization of debt discount and expense, and that portion of rental expense that we believe to be representative of interest.