EX-12 43 ex12.htm COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES ex12.htm

                                 
          EXHIBIT 12
AT&T, INC.
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
Dollars in millions
                                         
         
2007
      
2006
      
2005
      
2004
    
2003
Earnings:
                                        
 
Income from continuing operations before income taxes*
$
18,204
    
$ 
      10,881
    
$
5,718
     $ 
     7,165
   $ 
        8,716
 
Equity in net income of affiliates included above
  
         (692
 )     
        (2,043
 )     
           (609
 )     
           (873)
    
         (1,253)
 
Fixed Charges
      
        4,536
      
          2,209
      
           1,680
      
           1,238
    
           1,390
 
Distributed income of equity affiliates
    
           395
      
                97
      
              158
      
              331
    
             288
 
Interest capitalized
    
           (171
 )     
              (73
 )     
              (36
 )     
               (31)
    
              (37)
                                         
   
Earnings, as adjusted
  
$
22,276
     $ 
       11,071
    
$
6,911
     $ 
      7,830
   $ 
      9,104
                                         
                                         
Fixed Charges:
                                      
 
Interest expense
  
$
3,507
     $ 
        1,843
    
$
1,456
     $ 
        1,023
   $ 
          1,191
 
Interest capitalized
    
            171
      
                73
      
                36
      
                 31
    
                37
 
Dividends on preferred securities
    
               3
      
                  3
      
                 31
      
                24
    
                22
 
Portion of rental expense representative of interest factor
  
           855
      
             290
      
              157
      
              160
    
              140
                                         
   
Fixed Charges
  
$
4,536
     $ 
       2,209
     $
1,680
     $ 
       1,238
   $ 
        1,390
                                         
 
Ratio of Earnings to Fixed Charges
    
           4.91
      
             5.01
      
              4.11
      
            6.32
    
            6.55
                                         
                                         
*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.