Verizon Communications (VZ) 10-K 2012 FY Annual report

EXHIBIT 12

Computation of Ratio of Earnings to Fixed Charges

Verizon Communications Inc. and Subsidiaries

		(dollars in millions)
Years Ended December 31,	2012			2011			2010			2009			2008
Earnings:
Income before provision for income taxes, discontinued operations and extraordinary item	$	9,897		$	10,483		$	12,684		$	13,520		$	1,643
Equity in earnings of unconsolidated businesses		(324	)		(444	)		(508	)		(553	)		(567)
Dividends from unconsolidated businesses		401			480			510			942			779
Interest expense (1)		2,571			2,827			2,523			3,102			1,819
Portion of rent expense representing interest		837			817			837			839			734
Amortization of capitalized interest		162			148			139			134			125
Earnings, as adjusted	$	13,544		$	14,311		$	16,185		$	17,984		$	4,533
Fixed Charges:
Interest expense (1)	$	2,571		$	2,827		$	2,523		$	3,102		$	1,819
Portion of rent expense representing interest		837			817			837			839			734
Capitalized interest		406			442			964			927			747
Fixed Charges	$	3,814		$	4,086		$	4,324		$	4,868		$	3,300
Ratio of earnings to fixed charges		3.55			3.50			3.74			3.69			1.37

⁽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.