EXHIBIT 12
AT&T INC.
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
Dollars in Millions
| $2,3480000 | $2,3480000 | $2,3480000 | $2,3480000 | $2,3480000 | $2,3480000 | $2,3480000 | ||||||||||||||||||||||
| Six Months Ended | ||||||||||||||||||||||||||||
| June 30, (Unaudited) | Year Ended December 31, | |||||||||||||||||||||||||||
| 2011 | 2010 | 2010 | 2009 | 20081 | 2007 | 2006 | ||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | 10,821 | $ | 11,648 | $ | 18,238 | $ | 18,518 | $ | (4,572) | $ | 27,186 | $ | 18,638 | ||||||||||||||
Equity in net income of affiliates included above | (456) | (412) | (762) | (734) | (819) | (692) | (2,043) | |||||||||||||||||||||
Fixed charges | 2,348 | 2,389 | 4,786 | 5,071 | 4,943 | 4,489 | 2,166 | |||||||||||||||||||||
Distributed income of equity affiliates | 39 | 35 | 161 | 317 | 164 | 395 | 97 | |||||||||||||||||||||
Interest capitalized | (77) | (379) | (772) | (740) | (659) | (171) | (73) | |||||||||||||||||||||
Earnings, as adjusted | $ | 12,675 | $ | 13,281 | $ | 21,651 | $ | 22,432 | $ | (943) | $ | 31,207 | $ | 18,785 | ||||||||||||||
Fixed Charges: | ||||||||||||||||||||||||||||
Interest expense | $ | 1,694 | $ | 1,519 | $ | 2,994 | $ | 3,368 | $ | 3,369 | $ | 3,460 | $ | 1,800 | ||||||||||||||
Interest capitalized | 77 | 379 | 772 | 740 | 659 | 171 | 73 | |||||||||||||||||||||
Dividends on preferred securities | - | - | - | - | 4 | 3 | 3 | |||||||||||||||||||||
Portion of rental expense representative of interest factor | 577 | 491 | 1,020 | 963 | �� | 911 | 855 | 290 | ||||||||||||||||||||
Fixed Charges | $ | 2,348 | $ | 2,389 | $ | 4,786 | $ | 5,071 | $ | 4,943 | $ | 4,489 | $ | 2,166 | ||||||||||||||
Ratio of Earnings to Fixed Charges | 5.40 | 5.56 | 4.52 | 4.42 | - | 6.95 | 8.67 | |||||||||||||||||||||
1Earnings were not sufficient to cover fixed charges in 2008. The deficit was $943.
