Exhibit 12 GTE HAWAIIAN TELEPHONE COMPANY INCORPORATED STATEMENT OF CONSOLIDATED RATIOS OF EARNINGS TO FIXED CHARGES (Thousands of Dollars) Nine Months Nine Months Years Ended December 31 Ended Sept. 30, Ended Sept. 30, 1994(a) 1994 1993(b) 1993 1992 1991 1990 1989 _______ _____ _______ ____ ____ ____ ____ ____ Net earnings available for fixed charges: Net income (loss) (c)$36,585$29,964$50,291$(5,042)$43,590$46,698 $51,963 $48,340 Add - Income tax expense (benefit)19,45615,32824,170(9,865)24,228 16,115 12,015 9,304 - fixed charges30,06130,06136,32736,32734,21438,24335,24432, 352 ________________________________________________ _______ Adjusted earnings: $86,102$75,353$110,788$21,420$102,032$101,056$99, 222 $89,996 Fixed charges: Interest expense$26,417$26,417$31,660$31,660$29,214$33,843$30,811 $29,085 Portion of rent expense representing interest3,644 3,644 4,667 4,6675,000 4,4004,433 3,267 _____ _____ ____________________________________ Adjusted fixed charges:$30,061$30,061$36,327$36,327$34,214$38,243$35 ,244 $32,352 CONSOLIDATED RATIOS OF EARNINGS TO FIXED CHARGES: 2.86 2.51 3.05 0.59 2.98 2.64 2.82 2.78 ____________ (a) Excludes increased operating expenses related to the adoption, effective January 1, 1993, of Statement of Financial Accounting Standards (SFAS) No. 106 "Employers' Accounting for Postretirement Benefits Other than Pensions" on a delayed recognition basis. (b) Excludes increased operating expenses related to a one-time restructuring charge for the implementation of a re-engineering plan and the adoption of SFAS No. 106, partially offset by the recognition of a settlement gain on the enhanced early retirement and voluntary separation programs offered to eligible employees in 1993. (c) Includes allowance for funds used during construction. H:S-3:121