EX-12 2 ex12.htm PRO FORMA COMPUTATION OF RATIOS

 

AT&T Inc.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES - PRO FORMA

For the Six Months Ended June 30, 2006

($ in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments

 

Combined

 

 

 

Historical

 

Historical

 

Consolidation

 

 

 

Pro Forma

 

 

 

AT&T Inc.

 

BellSouth

 

of Cingular

 

Other

 

AT&T Inc.

Earnings:

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income taxes

$     4,854

 

$     2,467

 

$      266

 

$     (1,703)

 

$     5,884

 

Equity in net income of affiliates included above

(789)

 

(352)

 

894

 

-

 

(247)

 

Fixed Charges

 

1,112

 

619

 

859

 

(295)

 

2,295

 

Distributed income of equity affiliates

37

 

-

 

 

 

 

 

37

 

Interest capitalized

 

(31)

 

(6)

 

(1)

 

-

 

(38)

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings, as adjusted

 

$    5,183

 

$     2,728

 

$     2,018

 

$   (1,998)

 

$     7,931

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Charges:

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

$     936

 

$      558

 

$     595

 

$     (295)

 

$     1,794

 

Interest capitalized

 

31

 

6

 

1

 

-

 

38

 

Dividends on preferred securities

1

 

-

 

-

 

-

 

1

 

Portion of rental expense representative of interest factor

144

 

55

 

263

 

-

 

462

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Charges

 

$    1,112

 

$     619

 

$     859

 

$     (295)

 

$     2,295

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of Earnings to Fixed Charges

4.66

 

4.41

 

2.35

 

 

 

3.46