Exhibit 12 to Form 10-K for 1997 CINCINNATI BELL INC. COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (Millions of Dollars) 1997 1996 1995 1994 1993 ---- ---- ---- ---- ---- Earnings (a) Income (loss) before income taxes, extraordinary charges and cumulative effect of change in accounting principle $296.9 $284.7 $(19.6) $117.6 $(55.1) (b) Adjustment for undistributed (income) losses of partnerships (2.1) (3.4) (4.5) 1.3 1.3 (c) Interest expense 35.5 33.9 52.8 49.5 45.8 (d) One-third of rental expense 34.4 27.6 23.1 23.9 23.6 ------- ------- ------- ------ ------- Total Earnings(1) $364.7 $342.8 $ 51.8 $192.3 $ 15.6 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Fixed Charges (a) Interest expense $ 35.5 $ 33.9 $ 52.8 $ 49.5 $ 45.8 (b) One-third of rental expense 34.4 27.6 23.1 23.9 23.6 (c) Preferred dividends -- -- -- -- 3.5 ------- ------- ------- ------- ------- $ 69.9 $ 61.5 $ 75.9 $ 73.4 $ 72.9 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Ratio of earnings to combined fixed charges and preferred stock dividends 5.22 5.57 0.68 2.62 0.21 Coverage deficiency -- -- $ 24.1 -- $ 57.3 (1) Results for 1997 decreased $14.0 million for a charge from a 1997 business restructuring at MATRIXX and pension settlement gains from a 1995 business restructuring at CBT and CBI. Results for 1996 increased $27.1 million primarily for pension settlement gains from a 1995 business restructuring at CBT and CBI. Results for 1995 decreased $197.0 million primarily for a charge from a 1995 business restructuring at CBT and CBI and a writedown of goodwill at MATTRIXX. Results for 1993 decreased $131.5 million primarily for a charge from a 1993 restructuring at CBIS.