EXHIBIT 12
SBC COMMUNICATIONS INC.
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
$ in Millions
| Three Months Ended March 31, |
||||||||||||||||||||||||||||
| 2005 | 2004 | 2004 | 2003 | 2002 | 2001 | 2000 | ||||||||||||||||||||||
Income Before Income Taxes, Extraordinary Items
and Cumulative Effect of Accounting Changes* |
$ | 1,375 | $ | 2,357 | $ | 6,623 | $ | 7,751 | $ | 8,685 | $ | 9,984 | $ | 11,923 | ||||||||||||||
Add: Interest Expense |
353 | 232 | 1,023 | 1,242 | 1,382 | 1,599 | 1,592 | |||||||||||||||||||||
Dividends on Preferred Securities |
8 | 6 | 24 | 22 | 24 | 57 | 118 | |||||||||||||||||||||
1/3 Rental Expense |
40 | 37 | 160 | 140 | 195 | 266 | 252 | |||||||||||||||||||||
Adjusted Earnings |
$ | 1,776 | $ | 2,632 | $ | 7,830 | $ | 9,155 | $ | 10,286 | $ | 11,906 | $ | 13,885 | ||||||||||||||
Total Interest Charges |
$ | 360 | $ | 241 | $ | 1,054 | $ | 1,279 | $ | 1,440 | $ | 1,718 | $ | 1,693 | ||||||||||||||
Dividends on Preferred Securities |
8 | 6 | 24 | 22 | 24 | 57 | 118 | |||||||||||||||||||||
1/3 Rental Expense |
40 | 37 | 160 | 140 | 195 | 266 | 252 | |||||||||||||||||||||
Adjusted Fixed Charges |
$ | 408 | $ | 284 | $ | 1,236 | $ | 1,441 | $ | 1,659 | $ | 2,041 | $ | 2,063 | ||||||||||||||
Ratio of Earnings to Fixed Charges |
4.35 | 9.27 | 6.32 | 6.35 | 6.20 | 5.83 | 6.73 | |||||||||||||||||||||
| * | 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. |