EX-12 17 ex12.htm COMPUTATION OF RATIOS

EXHIBIT 12

 

AT&T Inc.

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

Dollars in Millions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2005

 

 

2004

 

 

2003

 

 

2002

 

 

2001

 

Income Before Income Taxes, Extraordinary Items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

and Cumulative Effect of Accounting Changes*

 

$

5,267

 

$

6,623

 

$

7,751

 

$

8,685

 

$

9,984

 

Add: Interest Expense

 

 

1,456

 

 

1,023

 

 

1,191

 

 

1,382

 

 

1,599

 

Dividends on Preferred Securities

 

 

31

 

 

24

 

 

22

 

 

24

 

 

57

 

1/3 Rental Expense

 

 

157

 

 

160

 

 

140

 

 

195

 

 

266

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Earnings

 

$

6,911

 

$

7,830

 

$

9,104

 

$

10,286

 

$

11,906

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Interest Charges

 

$

1,492

 

$

1,054

 

$

1,228

 

$

1,440

 

$

1,718

 

Dividends on Preferred Securities

 

 

31

 

 

24

 

 

22

 

 

24

 

 

57

 

1/3 Rental Expense

 

 

157

 

 

160

 

 

140

 

 

195

 

 

266

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Fixed Charges

 

$

1,680

 

$

1,238

 

$

1,390

 

$

1,659

 

$

2,041

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of Earnings to Fixed Charges

 

 

4.11

 

 

6.32

 

 

6.55

 

 

6.20

 

 

5.83

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*

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.