EX-12 2 ex12.htm COMPUTATION OF RATIOS OF EARNINGS

EXHIBIT 12

AT&T INC.

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

Dollars in Millions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

Year Ended December 31,

 

 

 

2007

 

 

2006

 

 

2006

 

 

2005

 

 

2004

 

 

2003

 

 

2002

Income Before Income Taxes, Extraordinary Items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

and Cumulative Effect of Accounting Changes*

 

$

4,312

 

$

1,844

 

$

8,935

 

$

5,267

 

$

6,623

 

$

7,751

 

$

8,686

Add:    Interest Expense

 

 

873

 

 

464

 

 

1,843

 

 

1,456

 

 

1,023

 

 

1,191

 

 

1,382

Dividends on Preferred Securities

 

 

1

 

 

1

 

 

3

 

 

31

 

 

24

 

 

22

 

 

24

1/3 Rental Expense

 

 

67

 

 

74

 

 

290

 

 

158

 

 

160

 

 

140

 

 

195

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Earnings

 

$

5,253

 

$

2,383

 

$

11,071

 

$

6,912

 

$

7,830

 

$

9,104

 

$

10,287

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Interest Charges

 

$

908

 

$

478

 

$

1,916

 

$

1,492

 

$

1,054

 

$

1,228

 

$

1,440

Dividends on Preferred Securities

 

 

1

 

 

1

 

 

3

 

 

31

 

 

24

 

 

22

 

 

24

1/3 Rental Expense

 

 

67

 

 

74

 

 

290

 

 

158

 

 

160

 

 

140

 

 

195

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Fixed Charges

 

$

976

 

$

553

 

$

2,209

 

$

1,681

 

$

1,238

 

$

1,390

 

$

1,659

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of Earnings to Fixed Charges

 

 

5.38

 

 

4.31

 

 

5.01

 

 

4.11

 

 

6.32

 

 

6.55

 

 

6.20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*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.