Exhibit 12 CAROLINA TELEPHONE AND TELEGRAPH COMPANY COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Thousands of Dollars) Three Months Ending Six Months Ending June 30, June 30, ------------------- ----------------- (Unaudited) (Unaudited) 1994 1993 1994 1993 ---- ---- ---- ---- Income before extraordinary item $ 28,210 $ 18,436 $ 48,780 $ 10,972 Capitalized interest (34) (9) (71) (25) Income tax provision 19,421 9,876 29,172 3,455 -------- -------- -------- -------- Subtotal 47,597 28,303 77,881 14,402 Fixed charges Interest charges 5,351 5,529 10,642 11,186 Interest factor of operating rents 328 512 728 1,119 -------- -------- -------- -------- Total fixed charges 5,679 6,041 11,370 12,305 -------- -------- -------- -------- Earnings, as adjusted $ 53,276 $ 34,344 $ 89,251 $ 26,707 ======== ======== ======== ======== Ratio of earnings to fixed charges 9.38 5.69 7.85 2.17 (1) ======== ======== ======== ======== NOTE: The above ratios have been computed by dividing fixed charges into the sum of (a) net income less capitalized interest included in income, (b) income taxes, and (c) fixed charges. Fixed charges consist of interest on all indebtedness (including amortization of debt issuance expenses) and the interest component of operating rents. (1) Net income for the six months ended June 30, 1993 included non- recurring costs associated with the merger and integration of Sprint and Centel. The portion of such charge attributable to the Company was $41.7 million, which reduced net income for the first six months of 1993 by $25.3 million. In the absence of the nonrecurring merger and integration costs recorded during the first quarter of 1993, the ratio of earnings to fixed charges would have been 5.56 for the six months ended June 30, 1993.