EX-12 5 a201710-kxexhibit12.htm EXHIBIT 12 Exhibit


EXHIBIT 12
Computation of Ratio of Earnings to Fixed Charges
Verizon Communications Inc. and Subsidiaries
 
 
(dollars in millions)
 
Years Ended December 31,
2017

 
2016

 
2015

 
2014

 
2013

Earnings:
 
 
 
 
 
 
 
 
 
Income before income taxes
$
20,594

 
$
20,986

 
$
28,240

 
$
15,270

 
$
29,277

Equity in losses (earnings) of unconsolidated businesses
77

 
98

 
86

 
(1,780
)
 
(142
)
Dividends from unconsolidated businesses
40

 
40

 
41

 
37

 
40

Interest expense (1)
4,733

 
4,376

 
4,920

 
4,915

 
2,667

Portion of rent expense representing interest
1,250

 
1,201

 
1,051

 
912

 
851

Amortization of capitalized interest
187

 
187

 
191

 
191

 
177

Earnings, as adjusted
$
26,881

 
$
26,888

 
$
34,529

 
$
19,545

 
$
32,870

 
 
 
 
 
 
 
 
 
 
Fixed Charges:
 
 
 
 
 
 
 
 
 
Interest expense (1)
$
4,733

 
$
4,376

 
$
4,920

 
$
4,915

 
$
2,667

Portion of rent expense representing interest
1,250

 
1,201

 
1,051

 
912

 
851

Capitalized interest
678

 
704

 
584

 
376

 
754

Fixed charges
$
6,661

 
$
6,281

 
$
6,555

 
$
6,203

 
$
4,272

 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
4.04

 
4.28

 
5.27

 
3.15

 
7.69

 
 
 
 
 
 
 
 
 
 
(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.