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Exhibit 12
QWEST CORPORATION
CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN MILLIONS)
| Years Ended December 31, | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2004 | 2003 | 2002 | 2001 | 2000 | ||||||||||||
Income from continuing operations before income taxes and cumulative effect of change in accounting principle effect | $ | 1,742 | $ | 1,758 | $ | 2,435 | $ | 2,833 | $ | 2,203 | |||||||
Add fixed charges | 647 | 643 | 634 | 588 | 588 | ||||||||||||
Add amortization of capitalized interest | 10 | 13 | 14 | 15 | 12 | ||||||||||||
Less interest capitalized | (9 | ) | (13 | ) | (24 | ) | (44 | ) | (49 | ) | |||||||
Earnings available for fixed charges | 2,390 | 2,401 | 3,059 | 3,392 | 2,754 | ||||||||||||
Interest expense, including amortization of premiums, discounts and debt issuance costs | 584 | 573 | 541 | 465 | 458 | ||||||||||||
Interest capitalized | 9 | 13 | 24 | 44 | 49 | ||||||||||||
Interest factor on rentals | 54 | 57 | 69 | 79 | 81 | ||||||||||||
Fixed charges | $ | 647 | $ | 643 | $ | 634 | $ | 588 | $ | 588 | |||||||
Ratio of earnings to fixed charges | 3.7 | 3.7 | 4.8 | 5.8 | 4.7 |
Until May 1, 2004, Qwest Corporation provided wireless services through its wholly owned subsidiary, Qwest Wireless LLC ("Qwest Wireless"). On May 1, 2004, we transferred ownership of Qwest Wireless to an affiliate. As a consequence, we no longer have wireless operations, and the results of operations and the financial position of Qwest Wireless have been reclassified in our consolidated financial statements to be included in discontinued operations. Amounts shown in this schedule have also been revised to conform to the current presentation of our consolidated financial statements.
QWEST CORPORATION CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES (DOLLARS IN MILLIONS)