SBC Communications Inc.
Ratio of Earnings to Fixed Charges - Pro Forma
Three Months Ended March 31, 2005
Dollars in Millions
| 3/31/2005 SBC Historical | 3/31/2005 AT&T Historical | Pro Forma Adjustments Combined |
Income Before Income Taxes | $ | 1,375 | (a) | $ | 897 | $ | (33 | ) | $ | 2,239 | ||||||
| Add: Interest Expense | 353 | 203 | (39 | ) | 517 | |||||||||||
| Dividends on Preferred Securities | 8 | - | - | 8 | ||||||||||||
| 1/3 Rental Expense | 40 | 33 | - | 73 | ||||||||||||
Adjusted Earnings | $ | 1,776 | $ | 1,133 | $ | (72 | ) | $ | 2,837 | |||||||
Total Interest Charges | $ | 360 | 207 | (39 | ) | $ | 528 | |||||||||
| Dividends on Preferred Securities | 8 | - | - | 8 | ||||||||||||
| 1/3 Rental Expense | 40 | 33 | - | 73 | ||||||||||||
Adjusted Fixed Charges | $ | 408 | $ | 240 | $ | (39 | ) | $ | 609 | |||||||
Ratio of Earnings to Fixed Charges | 4.35 | 4.72 | 4.66 | |||||||||||||
(a) For SBC, undistributed earnings on investments accounted for under the equity method have been excluded.
