EX-12 14 0014.txt COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES EXHIBIT 12 VERIZON COMMUNICATIONS INC. AND SUBSIDIARIES Computation of Ratio of Earnings to Fixed Charges (Dollars in Millions)
Years Ended December 31, ------------------------------------------------------------------------- 2000 1999 * 1998 * 1997 * 1996 * ------------------------------------------------------------------------- Income before provision for income taxes, extraordinary items, and cumulative effect of changes in accounting principles $17,819 $13,168 $8,801 $8,306 $9,147 Minority interest 216 79 182 164 268 Equity in (income) loss from unconsolidated businesses (3,792) (511) 216 (48) (202) Dividends from unconsolidated businesses 215 336 353 304 268 Interest expense, including interest related to lease financing activities 3,502 2,638 2,746 2,510 2,210 Portion of rent expense representing interest 351 336 340 324 308 Amortization of capitalized interest 52 33 25 19 12 ------------------------------------------------------------------------- Income, as adjusted $18,363 $16,079 $12,663 $11,579 $12,011 ========================================================================= Fixed charges: Interest expense, including interest related to lease financing activities $3,502 $2,638 $2,746 $2,510 $2,210 Portion of rent expense representing interest 351 336 340 324 308 Capitalized interest 230 146 117 129 190 Priority distributions - - - 19 58 Preferred stock dividend requirement 26 106 119 116 121 ------------------------------------------------------------------------- Fixed Charges $4,109 $3,226 $3,322 $3,098 $2,887 ========================================================================= Ratio of Earnings to Fixed Charges 4.47 4.98 3.81 3.74 4.16 =========================================================================
* Restated to reflect the merger of Bell Atlantic and GTE completed on June 30, 2000 and accounted for as a pooling-of-interests.