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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 Nine Months Ended September 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 |
$ 8,087 |
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$ 4,042 |
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$ 491 |
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$ (2,428) |
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$ 10,192 | |
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Equity in net income of affiliates included above |
(1,438) |
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(694) |
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1,741 |
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(391) | |
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Fixed Charges |
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1,647 |
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949 |
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1,323 |
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(346) |
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3,573 |
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Distributed income of equity affiliates |
79 |
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- |
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79 | |
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Interest capitalized |
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(52) |
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(8) |
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(32) |
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- |
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(92) |
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Earnings, as adjusted |
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$ 8,323 |
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$ 4,289 |
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$ 3,523 |
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$ (2,774) |
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$ 13,361 |
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Fixed Charges: |
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Interest expense |
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$ 1,378 |
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$ 860 |
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$ 901 |
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$ (346) |
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$ 2,793 |
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Interest capitalized |
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52 |
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8 |
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32 |
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|
92 |
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Dividends on preferred securities |
2 |
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- |
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- |
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2 | |
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Portion of rental expense representative of interest factor |
215 |
|
81 |
|
390 |
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|
686 | |
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Fixed Charges |
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$ 1,647 |
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$ 949 |
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$ 1,323 |
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$ (346) |
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$ 3,573 |
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Ratio of Earnings to Fixed Charges |
5.05 |
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4.52 |
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2.66 |
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3.74 | |