EXHIBIT 12
THE OHIO BELL TELEPHONE COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN MILLIONS)
1995 1994 1993 1992 1991
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1. EARNINGS
a) Income before interest cost, income
tax, extraordinary charge and
cumulative effect of change in
accounting principles..................... $551.4 $274.1 $446.9 $432.0 $405.5
b) Portion of rental expense representative
of the interest factor (1)................ 4.5 1.7 2.2 2.6 4.0
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Total 1(a) through 1(b)................. $555.9 $275.8 $449.1 $434.6 $409.5
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2. FIXED CHARGES
a) Total interest cost including capital
lease obligations......................... $ 62.3 $ 63.6 $ 62.2 $ 66.1 $ 80.6
b) Portion of rental expense representative
of the interest factor (1)................ 4.5 1.7 2.2 2.6 4.0
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Total 2(a) through 2(b)................. $ 66.8 $ 65.3 $ 64.4 $ 68.7 $ 84.6
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RATIO OF EARNINGS TO FIXED CHARGES............... 8.32 4.22 6.97 6.33 4.84
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(1) One-third of rental expense is considered to be the amount representing
return on capital.
(2) The results for 1995 reflect a $42.7 pretax credit primarily from
settlement gains resulting from lump sum pension payments from the pension
plan to former employees who left the business in the nonmanagement work
force restructuring, partially offset by $7.2 associated with increased
force costs related to the restructuring started in 1994, as well as a $1.0
charge recorded to write down certain data processing equipment to net
realizable value. Results for 1994 reflect a $173.2 pretax charge
associated with the nonmanagement work force restructuring. Costs of the
work force restructuring program have largely been funded from the
Ameritech Pension Plan.
(3) Interest cost includes capitalized interest expense.
(4) Earnings have not been adjusted to reflect the timing of dividends received
and equity in earnings of unconsolidated affiliates since the effect on an
annual basis has been insignificant.