EXHIBIT 12
Computation of Ratio of Earnings to Fixed Charges
Verizon Communications Inc. and Subsidiaries
(dollars in millions) | ||||||||||||||||||||
Years Ended December 31, | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||
Earnings: | ||||||||||||||||||||
Income before (provision) benefit for income taxes | $ | 20,986 | $ | 28,240 | $ | 15,270 | $ | 29,277 | $ | 9,897 | ||||||||||
Equity in losses (earnings) of unconsolidated businesses | 98 | 86 | (1,780 | ) | (142 | ) | (324) | |||||||||||||
Dividends from unconsolidated businesses | 40 | 41 | 37 | 40 | 401 | |||||||||||||||
Interest expense (1) | 4,376 | 4,920 | 4,915 | 2,667 | 2,571 | |||||||||||||||
Portion of rent expense representing interest | 1,201 | 1,051 | 912 | 851 | 837 | |||||||||||||||
Amortization of capitalized interest | 187 | 191 | 191 | 177 | 162 | |||||||||||||||
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Earnings, as adjusted | $ | 26,888 | $ | 34,529 | $ | 19,545 | $ | 32,870 | $ | 13,544 | ||||||||||
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Fixed Charges: | ||||||||||||||||||||
Interest expense (1) | $ | 4,376 | $ | 4,920 | $ | 4,915 | $ | 2,667 | $ | 2,571 | ||||||||||
Portion of rent expense representing interest | 1,201 | 1,051 | 912 | 851 | 837 | |||||||||||||||
Capitalized interest | 704 | 584 | 376 | 754 | 406 | |||||||||||||||
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Fixed charges | $ | 6,281 | $ | 6,555 | $ | 6,203 | $ | 4,272 | $ | 3,814 | ||||||||||
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Ratio of earnings to fixed charges | 4.28 | 5.27 | 3.15 | 7.69 | 3.55 | |||||||||||||||
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(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. |