EXHIBIT 12
| AT&T INC. | |||||||||||||||||||||
| COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES | |||||||||||||||||||||
| Dollars in Millions | |||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||
| March 31, | Year Ended December 31, | ||||||||||||||||||||
| 2009 | 2008 | 2008 | 2007 | 2006 | 2005 | 2004 | |||||||||||||||
| Earnings: | |||||||||||||||||||||
| Income from continuing operations before income taxes* | $ | 5,010 | $ | 5,449 | $ | 20,164 | $ | 18,399 | $ | 10,886 | $ | 5,720 | $ | 7,164 | |||||||
| Equity in net income of affiliates included above | (137) | (243) | (819) | (692) | (2,043) | (609) | (873) | ||||||||||||||
| Fixed charges | 1,272 | 1,129 | 4,963 | 4,536 | 2,209 | 1,680 | 1,238 | ||||||||||||||
| Distributed income of equity affiliates | 13 | 23 | 165 | 395 | 97 | 158 | 331 | ||||||||||||||
| Interest capitalized | (185) | (70) | (659) | (171) | (73) | (36) | (31) | ||||||||||||||
| Earnings, as adjusted | $ | 5,973 | $ | 6,288 | $ | 23,814 | $ | 22,467 | $ | 11,076 | $ | 6,913 | $ | 7,829 | |||||||
| Fixed Charges: | |||||||||||||||||||||
| Interest expense | $ | 849 | $ | 865 | $ | 3,390 | $ | 3,507 | $ | 1,843 | $ | 1,456 | $ | 1,023 | |||||||
| Interest capitalized | 185 | 70 | 659 | 171 | 73 | 36 | 31 | ||||||||||||||
| Dividends on preferred securities | - | 1 | 3 | 3 | 3 | 31 | 24 | ||||||||||||||
| Portion of rental expense representative of interest factor | 238 | 193 | 911 | 855 | 290 | 157 | 160 | ||||||||||||||
| Fixed Charges | $ | 1,272 | $ | 1,129 | $ | 4,963 | $ | 4,536 | $ | 2,209 | $ | 1,680 | $ | 1,238 | |||||||
| Ratio of Earnings to Fixed Charges | 4.70 | 5.57 | 4.80 | 4.95 | 5.01 | 4.11 | 6.32 | ||||||||||||||
| * All periods presented exclude “Income From Discontinued Operations, net of tax” on our Consolidated Statements of Income, which was from the sale of our interest in the directory advertising business in Illinois and northwest Indiana. |