AT&T Inc. | |||||||||||
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES - PRO FORMA | |||||||||||
For the Nine Months Ended September 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 | $ 8,087 |
| $ 4,042 |
| $ 491 |
| $ (2,428) |
| $ 10,192 | |
| Equity in net income of affiliates included above | (1,438) |
| (694) |
| 1,741 |
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| (391) | |
| Fixed Charges |
| 1,647 |
| 949 |
| 1,323 |
| (346) |
| 3,573 |
| Distributed income of equity affiliates | 79 |
| - |
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| 79 | |
| Interest capitalized |
| (52) |
| (8) |
| (32) |
| - |
| (92) |
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| Earnings, as adjusted |
| $ 8,323 |
| $ 4,289 |
| $ 3,523 |
| $ (2,774) |
| $ 13,361 |
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Fixed Charges: |
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| Interest expense |
| $ 1,378 |
| $ �� 860 |
| $ 901 |
| $ (346) |
| $ 2,793 |
| Interest capitalized |
| 52 |
| 8 |
| 32 |
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| 92 |
| Dividends on preferred securities | 2 |
| - |
| - |
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| 2 | |
| Portion of rental expense representative of interest factor | 215 |
| 81 |
| 390 |
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| 686 | |
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| Fixed Charges |
| $ 1,647 |
| $ 949 |
| $ 1,323 |
| $ (346) |
| $ 3,573 |
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| Ratio of Earnings to Fixed Charges | 5.05 |
| 4.52 |
| 2.66 |
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| 3.74 |