EXHIBIT 12
AT&T INC.
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
Dollars in Millions
Three Months Ended March 31, (Unaudited) | Year Ended December 31, | |||||||||||||||||||||||||||
2011 | 2010 | 2010 | 2009 | 20081 | 2007 | 2006 | ||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | 5,270 | $ | 5,401 | $ | 18,238 | $ | 18,518 | $ | (4,572 | ) | $ | 27,186 | $ | 18,638 | |||||||||||||
Equity in net income of affiliates included above | (249 | ) | (217 | ) | (762 | ) | (734 | ) | (819 | ) | (692 | ) | (2,043 | ) | ||||||||||||||
Fixed charges | 1,176 | 1,196 | 4,786 | 5,071 | 4,943 | 4,489 | 2,166 | |||||||||||||||||||||
Distributed income of equity affiliates | 16 | 17 | 161 | 317 | 164 | 395 | 97 | |||||||||||||||||||||
Interest capitalized | (35 | ) | (184 | ) | (772 | ) | (740 | ) | (659 | ) | (171 | ) | (73 | ) | ||||||||||||||
Earnings, as adjusted | $ | 6,178 | $ | 6,213 | $ | 21,651 | $ | 22,432 | $ | (943 | ) | $ | 31,207 | $ | 18,785 | |||||||||||||
Fixed Charges: | ||||||||||||||||||||||||||||
Interest expense | $ | 846 | $ | 765 | $ | 2,994 | $ | 3,368 | $ | 3,369 | $ | 3,460 | $ | 1,800 | ||||||||||||||
Interest capitalized | 35 | 184 | 772 | 740 | 659 | 171 | 73 | |||||||||||||||||||||
Dividends on preferred securities | — | — | — | — | 4 | 3 | 3 | |||||||||||||||||||||
Portion of rental expense representative of interest factor | 295 | 247 | 1,020 | 963 | 911 | 855 | 290 | |||||||||||||||||||||
Fixed Charges | $ | 1,176 | $ | 1,196 | $ | 4,786 | $ | 5,071 | $ | 4,943 | $ | 4,489 | $ | 2,166 | ||||||||||||||
Ratio of Earnings to Fixed Charges | 5.25 | 5.19 | 4.52 | 4.42 | — | 6.95 | 8.67 |
1 Earnings were not sufficient to cover fixed charges in 2008. The deficit was $943.