AT&T Inc. | |||||||||||
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES - PRO FORMA | |||||||||||
For the Six Months Ended June 30, 2006 | |||||||||||
($ in millions) | |||||||||||
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| Adjustments |
| Combined | ||
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| Historical |
| Historical |
| Consolidation |
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| Pro Forma |
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| AT&T Inc. |
| BellSouth |
| of Cingular |
| Other |
| AT&T Inc. |
Earnings: |
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| Income from continuing operations before income taxes | $ 4,854 |
| $ 2,467 |
| $ 266 |
| $ (1,703) |
| $ 5,884 | |
| Equity in net income of affiliates included above | (789) |
| (352) |
| 894 |
| - |
| (247) | |
| Fixed Charges |
| 1,112 |
| 619 |
| 859 |
| (295) |
| 2,295 |
| Distributed income of equity affiliates | 37 |
| - |
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| 37 | |
| Interest capitalized |
| (31) |
| (6) |
| (1) |
| - |
| (38) |
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| Earnings, as adjusted |
| $ 5,183 |
| $ 2,728 |
| $ 2,018 |
| $ (1,998) |
| $ 7,931 |
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Fixed Charges: |
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| Interest expense |
| $ 936 |
| $ 558 |
| $ 595 |
| $ (295) |
| $ 1,794 |
| Interest capitalized |
| 31 |
| 6 |
| 1 |
| - |
| 38 |
| Dividends on preferred securities | 1 |
| - |
| - |
| - |
| 1 | |
| Portion of rental expense representative of interest factor | 144 |
| 55 |
| 263 |
| - |
| 462 | |
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| Fixed Charges |
| $ 1,112 |
| $ 619 |
| $ 859 |
| $ (295) |
| $ 2,295 |
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| Ratio of Earnings to Fixed Charges | 4.66 |
| 4.41 |
| 2.35 |
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| 3.46 |