EX-12 3 ex12.htm COMPUTATION OF RATIOS OF EARNINGS

EXHIBIT 12

AT&T INC.

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

Dollars in Millions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

Year Ended December 31,

 

 

 

2006

 

 

2005

 

 

2005

 

 

2004

 

 

2003

 

 

2002

 

 

2001

Income Before Income Taxes, Extraordinary Items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

and Cumulative Effect of Accounting Changes*

 

$

4,102

 

$

2,698

 

$

5,267

 

 

6,623

 

$

7,751

 

$

8,685

 

$

9,984

Add:    Interest Expense

 

 

936

 

 

702

 

 

1,456

 

 

1,023

 

 

1,191

 

 

1,382

 

 

1,599

Dividends on Preferred Securities

 

 

1

 

 

16

 

 

31

 

 

24

 

 

22

 

 

24

 

 

57

1/3 Rental Expense

 

 

144

 

 

77

 

 

157

 

 

160

 

 

140

 

 

195

 

 

266

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Earnings

 

$

5,183

 

$

3,493

 

$

6,911

 

 

7,830

 

$

9,104

 

$

10,286

 

$

11,906

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Interest Charges

 

$

967

 

$

717

 

$

1,492

 

 

1,054

 

$

1,228

 

$

1,440

 

$

1,718

Dividends on Preferred Securities

 

 

1

 

 

16

 

 

31

 

 

24

 

 

22

 

 

24

 

 

57

1/3 Rental Expense

 

 

144

 

 

77

 

 

157

 

 

160

 

 

140

 

 

195

 

 

266

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Fixed Charges

 

$

1,112

 

$

810

 

$

1,680

 

 

1,238

 

$

1,390

 

$

1,659

 

$

2,041

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of Earnings to Fixed Charges

 

 

4.66

 

 

4.31

 

 

4.11

 

 

6.32

 

 

6.55

 

 

6.20

 

 

5.83

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*All periods presented exclude undistributed earnings on investments accounted for under the equity method as well as “Income From Discontinued Operations, net of tax” in our Consolidated Statements of Income, which was from the sale of our interest in the directory advertising business in Illinois and northwest Indiana.