EX-12 3 y06520exv12.txt COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES . . . EXHIBIT 12 AT&T CORP. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (UNAUDITED)
FOR THE YEARS ENDED DECEMBER 31, ----------------------------------------- 2004 2003 2002 2001 2000 ---- ------ ------ ------ ------- (DOLLARS IN MILLIONS) Income from continuing operations before income taxes............................................ -- $2,690 $2,836 $7,666 $12,480 Add distributions of less than 50% owned affiliates....................................... -- 6 1 5 11 Add fixed charges, excluding capitalized interest......................................... -- 1,319 1,624 1,677 1,697 ---- ------ ------ ------ ------- Total earnings from continuing operations before income taxes and fixed charges................... -- $4,015 $4,461 $9,348 $14,188 ==== ====== ====== ====== ======= Fixed Charges: Total interest expense............................. -- 1,158 1,448 1,493 1,503 Capitalized interest............................... -- 35 61 121 143 Interest portion of rental expense................. -- 161 176 184 194 ---- ------ ------ ------ ------- Total fixed charges................................ -- $1,354 $1,685 $1,798 $ 1,840 ==== ====== ====== ====== ======= Ratio of earnings to fixed charges................. (a) 3.0 2.6 5.2 7.7
--------------- (a) AT&T's pretax earnings for the year ended December 31, 2004, were inadequate to cover fixed charges by $11.1 billion.