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AT&T Inc. | |||||||||||
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COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES - PRO FORMA | |||||||||||
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For the Six Months Ended June 30, 2006 | |||||||||||
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($ in millions) | |||||||||||
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Adjustments |
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Combined | ||
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Historical |
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Historical |
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Consolidation |
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Pro Forma |
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AT&T Inc. |
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BellSouth |
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of Cingular |
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Other |
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AT&T Inc. |
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Earnings: |
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Income from continuing operations before income taxes |
$ 4,854 |
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$ 2,467 |
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$ 266 |
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$ (1,703) |
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$ 5,884 | |
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Equity in net income of affiliates included above |
(789) |
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(352) |
|
894 |
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- |
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(247) | |
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Fixed Charges |
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1,112 |
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619 |
|
859 |
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(295) |
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2,295 |
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Distributed income of equity affiliates |
37 |
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- |
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37 | |
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Interest capitalized |
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(31) |
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(6) |
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(1) |
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- |
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(38) |
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Earnings, as adjusted |
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$ 5,183 |
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$ 2,728 |
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$ 2,018 |
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$ (1,998) |
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$ 7,931 |
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Fixed Charges: |
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Interest expense |
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$ 936 |
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$ 558 |
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$ 595 |
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$ (295) |
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$ 1,794 |
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Interest capitalized |
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31 |
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6 |
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1 |
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- |
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38 |
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Dividends on preferred securities |
1 |
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- |
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- |
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- |
|
1 | |
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Portion of rental expense representative of interest factor |
144 |
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55 |
|
263 |
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- |
|
462 | |
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Fixed Charges |
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$ 1,112 |
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$ 619 |
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$ 859 |
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$ (295) |
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$ 2,295 |
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Ratio of Earnings to Fixed Charges |
4.66 |
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4.41 |
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2.35 |
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3.46 | |