EXHIBIT 12 SBC COMMUNICATIONS INC. COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES Dollars in Millions YEAR ENDED DECEMBER 31, -------------------------------------------------------------- 1999 1998 1997 1996 1995 -------------------------------------------------------------- Income Before Income Taxes, Extraordinary Items and Cumulative Effect of Accounting Changes* $ 10,382 $ 11,859 $ 6,356 $ 8,789 $ 8,139 Add: Interest Expense 1,430 1,605 1,550 1,418 1,513 Dividends on Preferred Securities 118 114 98 68 6 1/3 Rental Expense 236 228 202 188 152 ------------ ----------- ----------- ----------- ----------- Adjusted Earnings $ 12,166 $ 13,806 $ 8,206 $ 10,463 $ 9,810 ============ =========== =========== =========== =========== Total Interest Charges $ 1,511 $ 1,691 $ 1,700 $ 1,589 $ 1,533 Dividends on Preferred Securities 118 114 98 68 6 1/3 Rental Expense 236 228 202 188 152 ------------ ----------- ----------- ----------- ----------- Adjusted Fixed Charges $ 1,865 $ 2,033 $ 2,000 $ 1,845 $ 1,691 ============ =========== =========== =========== =========== Ratio of Earnings to Fixed Charges 6.52 6.79 4.10 5.67 5.80 <FN> * Undistributed earnings on investments accounted for under the equity method have been excluded. </FN>