EX-12 2 ex12.htm COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

AT&T Inc.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES - PRO FORMA

For the Nine Months Ended September 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

$       8,087

 

$          4,042

 

$                491

 

$     (2,428)

 

$        10,192

 

Equity in net income of affiliates included above

(1,438)

 

(694)

 

1,741

 

 

 

(391)

 

Fixed Charges

 

1,647

 

949

 

1,323

 

(346)

 

3,573

 

Distributed income of equity affiliates

79

 

-

 

 

 

 

 

79

 

Interest capitalized

 

(52)

 

(8)

 

(32)

 

-

 

(92)

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings, as adjusted

 

$       8,323

 

$         4,289

 

$           3,523

 

$       (2,774)

 

$        13,361

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Charges:

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

$       1,378

 

$             860

 

$               901

 

$          (346)

 

$          2,793

 

Interest capitalized

 

52

 

8

 

32

 

 

 

92

 

Dividends on preferred securities

2

 

-

 

-

 

 

 

2

 

Portion of rental expense representative of interest factor

215

 

81

 

390

 

 

 

686

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Charges

 

$      1,647

 

$              949

 

$            1,323

 

$         (346)

 

$          3,573

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of Earnings to Fixed Charges

5.05

 

4.52

 

2.66

 

 

 

3.74