EX-12.1 3 y62410exv12w1.txt STATEMENT RE COMPUTATION OF RATIO OF EARNINGS Exhibit 12.1 AT&T Corp. Statement Regarding Computation of Ratio of Earnings to Fixed Charges (Dollars in Millions) (Unaudited)
For the three months ended For the years ended December 31, March 31, 2002 2001 2000 1999 1998 1997 -------------- ---- ------ ------- ------ ------ Income from continuing operations before income taxes $ 460 -- $2,414 $10,781 $8,151 $6,888 Add distributions of less 1 than 50% owned affiliates -- 12 73 61 4 Add fixed charges, excluding capitalized interest and dividend requirements on subsidiary preferred stock and interest on trust preferred 822 -- 3,203 1,709 479 534 securities Total earnings from continuing operations before income taxes and fixed charges $1,283 -- $5,629 $12,563 $8,691 $7,426 Fixed Charges: Total interest expense $ 767 -- $2,964 $ 1,503 $ 293 $ 304 Capitalized interest 23 -- 177 143 106 100 Interest portion of rental expense 55 -- 239 206 186 230 Dividend requirements on subsidiary preferred stock and interest on trust preferred securities 103 -- 353 179 -- -- Total fixed charges $ 948 -- $3,733 $ 2,031 $ 585 $ 634 Ratio of earnings to fixed charges 1.4 (a) 1.5 6.2 14.9 11.7
(a) AT&T's loss for the year ended December 31, 2001 was inadequate to cover fixed charges, dividend requirements on subsidiary preferred stock and interest on trust preferred securities in the amount of $1.6 billion.