EX-12 3 d820819dex12.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,    2014     2013     2012     2011     2010  

Earnings:

           

Income before (provision) benefit for income taxes

    $   15,270      $   29,277      $ 9,897      $ 10,483      $ 12,684   

Equity in earnings of unconsolidated businesses

      (1,780 )      (142 )      (324 )      (444 )      (508 ) 

Dividends from unconsolidated businesses

      37        40        401        480        510   

Interest expense (1)

      4,915        2,667        2,571        2,827        2,523   

Portion of rent expense representing interest

      912        851        837        817        837   

Amortization of capitalized interest

      191        177        162        148        139   
  

 

 

  

Earnings, as adjusted

    $ 19,545      $ 32,870      $   13,544      $   14,311      $   16,185   
  

 

 

  

Fixed Charges:

           

Interest expense (1)

    $ 4,915      $ 2,667      $ 2,571      $ 2,827      $ 2,523   

Portion of rent expense representing interest

      912        851        837        817        837   

Capitalized interest

      376        754        406        442        964   
  

 

 

  

Fixed charges

    $ 6,203      $ 4,272      $ 3,814      $ 4,086      $ 4,324   
  

 

 

  

Ratio of earnings to fixed charges

      3.15        7.69        3.55        3.50        3.74   
  

 

 

  

 

(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.