Exhibit 12 ---------- PACIFIC BELL AND SUBSIDIARIES RATIO OF EARNINGS TO FIXED CHARGES (Dollars in millions) ----------------------------------------------- 1995 1994 1993 1992 1991 ------ ------ ------ ------ ------ 1. Earnings -------- (a) Income before Interest Expense $1,379 $1,510 $ 447 $1,591 $1,427 (b) Federal Income Taxes 421 462 (68) 458 416 (c) State and local Income Taxes 148 159 11 149 157 (d) 1/3 Operating Rental Expense 28 40 37 35 33 ------- ------- ------- ------- ------ Total $1,976 $2,171 $ 427 $2,233 $2,033 2. Fixed Charges ------------- (a) Total Interest Deductions $ 410 $ 439 $ 429 $ 460 $ 485 (b) 1/3 Operating Rental Expense 28 40 37 35 33 ------- ------- ------- ------- ------- Total $ 438 $ 479 $ 466 $ 495 $ 518 3. Ratio (1 divided by 2) 4.51 4.53 .92* 4.51 3.92** * This figure reflects the restructuring and curtailment charges totaling $924 million after taxes taken in the fourth quarter 1993. ** This figure reflects the restructuring charges of $121 million after taxes taken in fourth quarter 1991.