EXHIBIT 12
AT&T INC. | |||||||||||||||||||||
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES | |||||||||||||||||||||
Dollars in Millions | |||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||
June 30, | Year Ended | ||||||||||||||||||||
2009 | 2008 | 2008 | 2007 | 2006 | 2005 | 2004 | |||||||||||||||
Earnings: | |||||||||||||||||||||
Income from continuing operations before income taxes* | $ | 9,899 | $ | 11,403 | $ | 20,164 | $ | 18,399 | $ | 10,886 | $ | 5,720 | $ | 7,164 | |||||||
Equity in net income of affiliates included above | (368) | (455) | (819) | (692) | (2,043) | (609) | (873) | ||||||||||||||
Fixed charges | 2,567 | 2,372 | 4,963 | 4,536 | 2,209 | 1,680 | 1,238 | ||||||||||||||
Distributed income of equity affiliates | 29 | 40 | 165 | 395 | 97 | 158 | 331 | ||||||||||||||
Interest capitalized | (368) | (257) | (659) | (171) | (73) | (36) | (31) | ||||||||||||||
Earnings, as adjusted | $ | 11,759 | $ | 13,103 | $ | 23,814 | $ | 22,467 | $ | 11,076 | $ | 6,913 | $ | 7,829 | |||||||
Fixed Charges: | |||||||||||||||||||||
Interest expense | $ | 1,728 | $ | 1,719 | $ | 3,390 | $ | 3,507 | $ | 1,843 | $ | 1,456 | $ | 1,023 | |||||||
Interest capitalized | 368 | 257 | 659 | 171 | 73 | 36 | 31 | ||||||||||||||
Dividends on preferred securities | - | 2 | 3 | 3 | 3 | 31 | 24 | ||||||||||||||
Portion of rental expense representative of interest factor | 471 | 394 | 911 | 855 | 290 | 157 | 160 | ||||||||||||||
Fixed Charges | $ | 2,567 | $ | 2,372 | $ | 4,963 | $ | 4,536 | $ | 2,209 | $ | 1,680 | $ | 1,238 | |||||||
Ratio of Earnings to Fixed Charges | 4.58 | 5.52 | 4.80 | 4.95 | 5.01 | 4.11 | 6.32 | ||||||||||||||
* 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. |