EX-12 3 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
                                           
 
Three Months Ended
                            
   
March 31,
  
Year Ended December 31,
     
2009
    
2008
    
2008
    
2007
    
2006
    
2005
    
2004
Earnings:
                                          
Income from continuing operations before income taxes*
  
$
5,010
  
$
5,449
  
$
20,164
  
$
18,399
  
$
10,886
  
$
5,720
  
$
7,164
Equity in net income of affiliates included above
    
(137)
    
(243)
    
(819)
    
(692)
    
(2,043)
    
(609)
    
(873)
Fixed charges
    
1,272
    
1,129
    
4,963
    
4,536
    
2,209
    
1,680
    
1,238
Distributed income of equity affiliates
    
13
    
23
    
165
    
395
    
97
    
158
    
331
Interest capitalized
    
(185)
    
(70)
    
(659)
    
(171)
    
(73)
    
(36)
    
(31)
                                           
Earnings, as adjusted
  
$
5,973
  
$
6,288
  
$
23,814
  
$
22,467
  
$
11,076
  
$
6,913
  
$
7,829
                                           
Fixed Charges:
                                          
Interest expense
  
$
849
  
$
865
  
$
3,390
  
$
3,507
  
$
1,843
  
$
1,456
  
$
1,023
Interest capitalized
    
185
    
70
    
659
    
171
    
73
    
36
    
31
Dividends on preferred securities
    
-
    
1
    
3
    
3
    
3
    
31
    
24
Portion of rental expense representative of interest factor
    
238
    
193
    
911
    
855
    
290
    
157
    
160
                                           
Fixed Charges
  
$
1,272
  
$
1,129
  
$
4,963
  
$
4,536
  
$
2,209
  
$
1,680
  
$
1,238
                                           
Ratio of Earnings to Fixed Charges
    
4.70
    
5.57
    
4.80
    
4.95
    
5.01
    
4.11
    
6.32
                                           
 
 
* All periods presented exclude “Income From Discontinued Operations, net of tax” on our Consolidated Statements of Income, which was from the sale of our interest in the directory advertising business in Illinois and northwest Indiana.