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QWEST COMMUNICATIONS INTERNATIONAL INC.
RATIO OF EARNINGS TO FIXED CHARGES(1)
(Dollars in millions)
| Year Ended December 31, | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1997 | 1998 | 1999 | 2000 | 2001 | ||||||||||||
Income (loss) before income taxes, extraordinary item and cumulative effect of change in accounting principle | $ | 2,429 | $ | 2,419 | $ | 1,902 | $ | 126 | $ | (3,958 | ) | ||||||
Interest expense (net of amounts capitalized) | 405 | 543 | 736 | 1,041 | 1,442 | ||||||||||||
Interest factor on rentals (1/3) | 91 | 70 | 92 | 137 | 151 | ||||||||||||
Subtotal earnings | 2,925 | 3,032 | 2,730 | 1,304 | (2,365 | ) | |||||||||||
Add: Losses from equity method affiliates | — | — | — | 41 | 3,170 | ||||||||||||
Total earnings | $ | 2,925 | $ | 3,032 | $ | 2,730 | $ | 1,345 | $ | 805 | |||||||
Gross interest expense | $ | 425 | $ | 568 | $ | 763 | $ | 1,145 | $ | 1,629 | |||||||
Interest factor on rentals (1/3) | 91 | 70 | 92 | 137 | 151 | ||||||||||||
Fixed charges | $ | 516 | $ | 638 | $ | 855 | $ | 1,282 | $ | 1,780 | |||||||
Ratio of earnings to fixed charges or (coverage deficiency) | 5.67 | 4.75 | 3.19 | 1.05 | $ | (975 | ) | ||||||||||
Note (1):
"Earnings" is computed by adding income before income taxes, extraordinary items and cumulative effect of change in accounting principle and fixed charges. Also included in earnings is the add-back of Qwest's share of losses in its equity method affiliates. "Fixed charges" consist of interest on indebtedness and the portion of rentals representative of the interest factor.
Note (2):
For the year ended December 31, 2001, the ratio of earnings to fixed charges was calculated as a negative ratio. As a result, disclosed above is the calculation of the coverage deficiency. For the purposes of this calculation we have included the impact of the $3.048 billion write-down of the investment in KPNQwest that occurred during the second quarter of 2001, as an add-back of Qwest's share of losses in its equity method affiliates.
QWEST COMMUNICATIONS INTERNATIONAL INC. RATIO OF EARNINGS TO FIXED CHARGES(1) (Dollars in millions)