EXHIBIT 12
PACIFIC BELL
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
Dollars in Millions
NINE MONTHS ENDED
SEPTEMBER 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, Extraordinary Loss and
Cumulative Effect of Accounting Changes $ (74) $ 1,491 $ 1,945 $ 1,538 $ 1,692 $ (39) $ 1,738
Add: Interest Expense 336 277 363 410 439 429 460
1/3 Rental Expense 52 37 46 28 40 37 35
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Adjusted Earnings $ 314 $ 1,805 $ 2,354 $ 1,976 $ 2,171 $ 427 $ 2,233
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Total Interest Charges $ 373 $ 306 $ 411 $ 410 $ 439 $ 429 $ 460
1/3 Rental Expense 52 37 46 28 40 37 35
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Adjusted Fixed Charges $ 425 $ 343 $ 457 $ 438 $ 479 $ 466 $ 495
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Ratio of Earnings to Fixed Charges 0.74 5.26 5.15 4.51 4.53 0.92 4.51