Exhibit 12
Computation of Ratio of Earnings to Fixed Charges
Verizon Communications Inc. and Subsidiaries
(dollars in millions) | | Nine Months Ended September 30, 2007 | |
Income before provision for income taxes, discontinued operations and extraordinary item | $ | 7,661 | |
Minority interest | 3,720 | ||
Equity in earnings of unconsolidated businesses | (492) | ||
Dividends from unconsolidated businesses | 224 | ||
Interest expense(1) | 1,390 | ||
Portion of rent expense representing interest | 415 | ||
Amortization of capitalized interest | 86 | ||
Income, as adjusted | $ | 13,004 | |
Fixed charges: | |||
Interest expense(1) | $ | 1,390 | |
Portion of rent expense representing interest | 415 | ||
Capitalized interest | 332 | ||
Fixed charges | $ | 2,137 | |
Ratio of earnings to fixed charges | 6.09 | ||
(1) | Verizon adopted FIN 48 on January 1, 2007 (see Note 3 of the Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q). Our policy is to classify interest expense recognized on uncertain tax positions as income tax expense. We have excluded interest expense recognized on uncertain tax positions from the Ratio of Earnings to Fixed Charges. |