EX-12 2 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
                                           
 
Nine Months Ended
                            
   
September 30,
  
Year Ended
     
2009
    
2008
    
2008
    
2007
    
2006
    
2005
    
2004
Earnings:
                                          
Income from continuing operations before income taxes*
  
$
14,642
  
$
16,397
  
$
20,164
  
$
18,399
  
$
10,886
  
$
5,720
  
$
7,164
Equity in net income of affiliates included above
    
(549)
    
(712)
    
(819)
    
(692)
    
(2,043)
    
(609)
    
(873)
Fixed charges
    
3,848
    
3,658
    
4,963
    
4,536
    
2,209
    
1,680
    
1,238
Distributed income of equity affiliates
    
119
    
140
    
165
    
395
    
97
    
158
    
331
Interest capitalized
    
(553)
    
(455)
    
(659)
    
(171)
    
(73)
    
(36)
    
(31)
                                           
Earnings, as adjusted
  
$
17,507
  
$
19,028
  
$
23,814
  
$
22,467
  
$
11,076
  
$
6,913
  
$
7,829
                                           
Fixed Charges:
                                          
Interest expense
  
$
2,581
  
$
2,577
  
$
3,390
  
$
3,507
  
$
1,843
  
$
1,456
  
$
1,023
Interest capitalized
    
553
    
455
    
659
    
171
    
73
    
36
    
31
Dividends on preferred securities
    
-
    
3
    
3
    
3
    
3
    
31
    
24
Portion of rental expense representative of interest factor
    
714
    
623
    
911
    
855
    
290
    
157
    
160
                                           
Fixed Charges
  
$
3,848
  
$
3,658
  
$
4,963
  
$
4,536
  
$
2,209
  
$
1,680
  
$
1,238
                                           
Ratio of Earnings to Fixed Charges
    
4.55
    
5.20
    
4.80
    
4.95
    
5.01
    
4.11
    
6.32
                                           
 
 
* All periods presented exclude undistributed earnings on investments accounted for under the equity method as well as "Income From discountinued 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.