EXHIBIT 12
Computation of Ratio of Earnings to Fixed Charges
Verizon Communications Inc. and Subsidiaries
| (dollars in millions) | ||||||||||||||||||
| Years Ended December 31, | 2005 | 2004 | 2003 | 2002 | 2001 | |||||||||||||
| Income before provision for income taxes, discontinued operations, extraordinary items, and cumulative effect of accounting change |
$ 10,607 | $ 10,112 | $ 4,673 | $ 6,130 | $ 2,660 | |||||||||||||
| Minority interest |
3,045 | 2,409 | 1,583 | 1,404 | 625 | |||||||||||||
| Equity in (earnings) loss of unconsolidated businesses |
(689 | ) | (1,691 | ) | (1,278 | ) | 1,547 | (446 | ) | |||||||||
| Dividends from unconsolidated businesses |
2,336 | 162 | 198 | 97 | 178 | |||||||||||||
| Interest expense |
2,180 | 2,384 | 2,797 | 3,130 | 3,276 | |||||||||||||
| Portion of rent expense representing interest |
511 | 449 | 445 | 418 | 419 | |||||||||||||
| Amortization of capitalized interest |
108 | 104 | 103 | 87 | 70 | |||||||||||||
| Income, as adjusted |
$ 18,098 | $ 13,929 | $ 8,521 | $ 12,813 | $ 6,782 | |||||||||||||
| Fixed charges: |
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| Interest expense |
$ 2,180 | $ 2,384 | $ 2,797 | $ 3,130 | $ 3,276 | |||||||||||||
| Portion of rent expense representing interest |
511 | 449 | 445 | 418 | 419 | |||||||||||||
| Capitalized interest |
352 | 177 | 144 | 185 | 368 | |||||||||||||
| Preferred stock dividend requirement |
9 | 8 | 12 | 18 | 61 | |||||||||||||
| Fixed Charges |
$ 3,052 | $ 3,018 | $ 3,398 | $ 3,751 | $ 4,124 | |||||||||||||
| Ratio of Earnings to Fixed Charges |
5.93 | 4.62 | 2.51 | 3.42 | 1.64 | |||||||||||||