In this paper it will be shown that when a conditional statement is understood or known to be true, a number of implicitly specified variables are given more or less concrete values. Each of the variables will be defined and examples will be employed to demonstrate their use in conditional evaluation. From time to time this analysis in terms of variables will be contrasted with a 'possible worlds' analysis of conditionals. The purpose of this paper is not to argue against the possible worlds analysis but rather to provide an alternative to that analysis.