EX-12 14 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
 
   
2009
    
2008
    
2007
    
2006
    
2005
  
Earnings:
                              
Income from continuing operations before income taxes
   $ 18,999     $ 20,164     $ 18,399     $ 10,886     $ 5,720  
Equity in net income of affiliates included above
     (734 )     (819 )     (692 )     (2,043 )     (609 ) 
Fixed Charges
     5,102       4,964       4,536       2,209       1,681  
Distributed income of equity affiliates
     317       164       395       97       158  
Interest capitalized
     (740 )     (659 )     (171 )     (73 )     (36 )
                                         
Earnings, as adjusted
   $ 22,944     $ 23,814     $ 22,467     $ 11,076     $ 6,914  
                                         
                                         
Fixed Charges:
                                        
Interest expense
   $ 3,379     $ 3,390     $ 3,507     $ 1,843     $ 1,456  
Interest capitalized
     740       659       171       73       36  
Dividends on preferred securities
     -       4       3       3       31  
Portion of rental expense representative of interest factor
     983       911       855       290       158  
                                         
Fixed Charges
   $ 5,102     $ 4,964     $ 4,536     $ 2,209     $ 1,681  
                                         
Ratio of Earnings to Fixed Charges
     4.50       4.80       4.95       5.01       4.11  
 
 
 * 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.