EXHIBIT 12 SBC COMMUNICATIONS INC. COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES Dollars in Millions YEAR ENDED DECEMBER 31, -------------------------------------------------------------- 1998 1997 1996 1995 1994 -------------------------------------------------------------- Income Before Income Taxes, Extraordinary Loss and Cumulative Effect of Accounting Changes* $ 6,318 $ 2,558 $ 5,283 $ 4,670 $ 4,403 Add: Interest Expense 993 1,043 901 1,043 1,010 Dividends on Preferred Securities 80 80 60 - - 1/3 Rental Expense 147 129 115 85 93 ------------ ----------- ----------- ----------- ----------- Adjusted Earnings $ 7,538 $ 3,810 $ 6,359 $ 5,798 $ 5,506 ============ =========== =========== =========== =========== Total Interest Charges $ 1,052 $ 1,168 $ 1,043 $ 1,048 $ 1,010 Dividends on Preferred Securities 80 80 60 - - 1/3 Rental Expense 147 129 115 85 93 ------------ ----------- ----------- ----------- ----------- Adjusted Fixed Charges $ 1,279 $ 1,377 $ 1,218 $ 1,133 $ 1,103 ============ =========== =========== =========== =========== Ratio of Earnings to Fixed Charges 5.89 2.77 5.22 5.12 4.99 <FN> * Undistributed earnings on investments accounted for under the equity method have been excluded. </FN>