EXHIBIT 12
AT&T INC. | |||||||||||||||||||||
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES | |||||||||||||||||||||
Dollars in Millions | |||||||||||||||||||||
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| Nine Months Ended |
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| September 30, |
| Year Ended December 31, | |||||||||||||||||
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| 2006 |
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| 2005 |
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| 2005 |
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| 2004 |
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| 2003 |
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| 2002 |
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| 2001 |
Income Before Income Taxes, Extraordinary Items |
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and Cumulative Effect of Accounting Changes* |
| $ | 6,728 |
| $ | 4,344 |
| $ | 5,267 |
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| 6,623 |
| $ | 7,751 |
| $ | 8,685 |
| $ | 9,984 |
Add: Interest Expense |
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| 1,378 |
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| 1,051 |
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| 1,456 |
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| 1,023 |
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| 1,191 |
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| 1,382 |
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| 1,599 |
Dividends on Preferred Securities |
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| 2 |
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| 26 |
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| 31 |
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| 24 |
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| 22 |
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| 24 |
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| 57 |
1/3 Rental Expense |
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| 215 |
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| 116 |
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| 157 |
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| 160 |
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| 140 |
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| 195 |
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| 266 |
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Adjusted Earnings |
| $ | 8,323 |
| $ | 5,537 |
| $ | 6,911 |
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| 7,830 |
| $ | 9,104 |
| $ | 10,286 |
| $ | 11,906 |
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Total Interest Charges |
| $ | 1,430 |
| $ | 1,075 |
| $ | 1,492 |
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| 1,054 |
| $ | 1,228 |
| $ | 1,440 |
| $ | 1,718 |
Dividends on Preferred Securities |
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| 2 |
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| 26 |
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| 31 |
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| 24 |
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| 22 |
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| 24 |
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| 57 |
1/3 Rental Expense |
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| 215 |
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| 116 |
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| 157 |
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| 160 |
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| 140 |
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| 195 |
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| 266 |
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Adjusted Fixed Charges |
| $ | 1,647 |
| $ | 1,217 |
| $ | 1,680 |
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| 1,238 |
| $ | 1,390 |
| $ | 1,659 |
| $ | 2,041 |
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Ratio of Earnings to Fixed Charges |
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| 5.05 |
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| 4.55 |
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| 4.11 |
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| 6.32 |
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| 6.55 |
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| 6.20 |
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| 5.83 |
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*All periods presented exclude undistributed earnings on investments accounted for under the equity method as well as “Income From Discontinued 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.