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EXHIBIT 12
PACIFIC BELL
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
Dollars in Millions
SIX MONTHS ENDED
JUNE 30, YEAR ENDED DECEMBER 31,
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1997 1996 1996 1995 1994 1993 1992
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Income (Loss) From Continuing Operations Before
Income Taxes and Cumulative Effect of
Accounting Changes $ (395) $ 1,054 $ 1,945 $ 1,538 $ 1,692 $ (39) $ 1,738
Add: Interest Expense 219 182 363 410 439 429 460
1/3 Rental Expense 30 23 46 28 40 37 35
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Adjusted Earnings $ (146) $ 1,259 $ 2,354 $ 1,976 $ 2,171 $ 427 $ 2,233
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Total Interest Charges $ 252 $ 201 $ 411 $ 410 $ 439 $ 429 $ 460
1/3 Rental Expense 30 23 46 28 40 37 35
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Adjusted Fixed Charges $ 282 $ 224 $ 457 $ 438 $ 479 $ 466 $ 495
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Ratio of Earnings to Fixed Charges (0.52) 5.62 5.15 4.51 4.53 0.92 4.51