EX-12 3 ex12.htm COMPUTATION OF RATIOS OF EARNINGS

EXHIBIT 12

SBC COMMUNICATIONS INC.

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

Dollars in Millions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

Year Ended December 31,

 

 

 

2005

 

 

2004

 

 

2004

 

 

2003

 

 

2002

 

 

2001

 

 

2000

Income Before Income Taxes, Extraordinary Items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

and Cumulative Effect of Accounting Changes*

 

$

2,698

 

$

3,832

 

$

6,623

 

$

7,751

 

$

8,685

 

$

9,984

 

$

11,923

Add:     Interest Expense

 

 

702

 

 

467

 

 

1,023

 

 

1,242

 

 

1,382

 

 

1,599

 

 

1,592

Dividends on Preferred Securities

 

 

16

 

 

11

 

 

24

 

 

22

 

 

24

 

 

57

 

 

118

1/3 Rental Expense

 

 

77

 

 

67

 

 

160

 

 

140

 

 

195

 

 

266

 

 

252

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Earnings

 

$

3,493

 

$

4,377

 

$

7,830

 

$

9,155

 

$

10,286

 

$

11,906

 

$

13,885

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Interest Charges

 

$

717

 

$

483

 

$

1,054

 

$

1,279

 

$

1,440

 

$

1,718

 

$

1,693

Dividends on Preferred Securities

 

 

16

 

 

11

 

 

24

 

 

22

 

 

24

 

 

57

 

 

118

1/3 Rental Expense

 

 

77

 

 

67

 

 

160

 

 

140

 

 

195

 

 

266

 

 

252

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Fixed Charges

 

$

810

 

$

561

 

$

1,238

 

$

1,441

 

$

1,659

 

$

2,041

 

$

2,063

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of Earnings to Fixed Charges

 

 

4.31

 

 

7.80

 

 

6.32

 

 

6.35

 

 

6.20

 

 

5.83

 

 

6.73

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* 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.