(Mark One) |
x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||
For the quarterly period ended | |||
or | |||
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||
Large accelerated filer | [X] | Accelerated filer | [ ] | |
Non-accelerated filer | [ ] | (Do not check if a smaller reporting company) | Smaller reporting company | [ ] |
AT&T INC. | AT&T INC. | AT&T INC. | |||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | CONSOLIDATED STATEMENTS OF INCOME | CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||||||||
Dollars in millions except per share amounts | Dollars in millions except per share amounts | Dollars in millions except per share amounts | |||||||||||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||||||||||||
Three months ended | Six months ended | Three months ended | Nine months ended | ||||||||||||||||||||||||
June 30, | June 30, | September 30, | September 30, | ||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||||
Operating Revenues | |||||||||||||||||||||||||||
Wireless service | $ | 14,765 | $ | 14,157 | $ | 29,331 | $ | 28,118 | $ | 14,906 | $ | 14,261 | $ | 44,237 | $ | 42,379 | |||||||||||
Data | 7,923 | 7,349 | 15,718 | 14,520 | 7,977 | 7,459 | 23,695 | 21,979 | |||||||||||||||||||
Voice | 5,697 | 6,340 | 11,590 | 12,890 | 5,565 | 6,242 | 17,155 | 19,132 | |||||||||||||||||||
Directory | 305 | 841 | 1,049 | 1,709 | - | 803 | 1,049 | 2,512 | |||||||||||||||||||
Other | 2,885 | 2,808 | 5,709 | 5,505 | 3,011 | 2,713 | 8,720 | 8,218 | |||||||||||||||||||
Total operating revenues | 31,575 | 31,495 | 63,397 | 62,742 | 31,459 | 31,478 | 94,856 | 94,220 | |||||||||||||||||||
Operating Expenses | |||||||||||||||||||||||||||
Cost of services and sales (exclusive of depreciation | |||||||||||||||||||||||||||
and amortization shown separately below) | 12,369 | 12,756 | 25,282 | 25,569 | 12,718 | 12,656 | 38,000 | 38,225 | |||||||||||||||||||
Selling, general and administrative | 7,890 | 7,972 | 16,138 | 16,014 | 8,192 | 7,969 | 24,330 | 23,983 | |||||||||||||||||||
Depreciation and amortization | 4,499 | 4,602 | 9,059 | 9,186 | 4,512 | 4,618 | 13,571 | 13,804 | |||||||||||||||||||
Total operating expenses | 24,758 | 25,330 | 50,479 | 50,769 | 25,422 | 25,243 | 75,901 | 76,012 | |||||||||||||||||||
Operating Income | 6,817 | 6,165 | 12,918 | 11,973 | 6,037 | 6,235 | 18,955 | 18,208 | |||||||||||||||||||
Other Income (Expense) | |||||||||||||||||||||||||||
Interest expense | (941 | ) | (848 | ) | (1,800 | ) | (1,694 | ) | (824) | (889) | (2,624) | (2,583) | |||||||||||||||
Equity in net income of affiliates | 132 | 207 | 355 | 456 | 182 | 193 | 537 | 649 | |||||||||||||||||||
Other income (expense) – net | 23 | 27 | 75 | 86 | 47 | 46 | 122 | 132 | |||||||||||||||||||
Total other income (expense) | (786 | ) | (614 | ) | (1,370 | ) | (1,152 | ) | (595) | (650) | (1,965) | (1,802) | |||||||||||||||
Income Before Income Taxes | 6,031 | 5,551 | 11,548 | 10,821 | 5,442 | 5,585 | 16,990 | 16,406 | |||||||||||||||||||
Income tax expense | 2,066 | 1,893 | 3,931 | 3,695 | 1,741 | 1,899 | 5,672 | 5,594 | |||||||||||||||||||
Net Income | 3,965 | 3,658 | 7,617 | 7,126 | 3,701 | 3,686 | 11,318 | 10,812 | |||||||||||||||||||
Less: Net Income Attributable to Noncontrolling Interest | (63 | ) | (67 | ) | (131 | ) | (127 | ) | (66) | (63) | (197) | (190) | |||||||||||||||
Net Income Attributable to AT&T | $ | 3,902 | $ | 3,591 | $ | 7,486 | $ | 6,999 | $ | 3,635 | $ | 3,623 | $ | 11,121 | $ | 10,622 | |||||||||||
Basic Earnings Per Share Attributable to AT&T | $ | 0.67 | $ | 0.60 | $ | 1.27 | $ | 1.18 | $ | 0.63 | $ | 0.61 | $ | 1.90 | $ | 1.79 | |||||||||||
Diluted Earnings Per Share Attributable to AT&T | $ | 0.66 | $ | 0.60 | $ | 1.27 | $ | 1.18 | $ | 0.63 | $ | 0.61 | $ | 1.90 | $ | 1.79 | |||||||||||
Weighted Average Number of Common Shares | |||||||||||||||||||||||||||
Outstanding – Basic (in millions) | 5,855 | 5,932 | 5,886 | 5,929 | 5,771 | 5,936 | 5,848 | 5,931 | |||||||||||||||||||
Weighted Average Number of Common Shares | |||||||||||||||||||||||||||
Outstanding – with Dilution (in millions) | 5,876 | 5,953 | 5,907 | 5,948 | 5,792 | 5,954 | 5,869 | 5,950 | |||||||||||||||||||
Dividends Declared Per Common Share | $ | 0.44 | $ | 0.43 | $ | 0.88 | $ | 0.86 | $ | 0.44 | $ | 0.43 | $ | 1.32 | $ | 1.29 | |||||||||||
See Notes to Consolidated Financial Statements. |
AT&T INC. | |||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||||||||||||
Dollars in millions | |||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||
Three months ended | Six months ended | Three months ended | Nine months ended | ||||||||||||||||||||||||
June 30, | June 30, | September 30, | September 30, | ||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||||
Net income | $ | 3,965 | $ | 3,658 | $ | 7,617 | $ | 7,126 | $ | 3,701 | $ | 3,686 | $ | 11,318 | $ | 10,812 | |||||||||||
Other comprehensive income, net of tax: | |||||||||||||||||||||||||||
Foreign currency translation adjustments (includes $(1), $0, $0 and $0 attributable to noncontrolling interest), net of taxes of $(55), $73, $76 and $123 | (101 | ) | 135 | 142 | 228 | ||||||||||||||||||||||
Foreign currency translation adjustments, net of taxes of $33, $(280), $109 and $(157) | 57 | (519) | 199 | (291) | |||||||||||||||||||||||
Net unrealized gains (losses) on available-for-sale securities: | |||||||||||||||||||||||||||
Unrealized gains (losses), net of taxes of $(27), $2, $27 and $29 | (52 | ) | 6 | 49 | 55 | ||||||||||||||||||||||
Reclassification adjustment realized in net income, net of taxes of $(3), $(2), $(6) and $(21) | (6 | ) | (6 | ) | (12 | ) | (41 | ) | |||||||||||||||||||
Unrealized gains (losses), net of taxes of $31, $(88), $58 and $(59) | 59 | (165) | 108 | (110) | |||||||||||||||||||||||
Reclassification adjustment realized in net income, net of taxes of $(28), $(2), $(34) and $(23) | (51) | (2) | (63) | (43) | |||||||||||||||||||||||
Net unrealized gains (losses) on cash flow hedges: | |||||||||||||||||||||||||||
Unrealized losses, net of taxes of $(58), $(12), $(58) and $(8) | (107 | ) | (21 | ) | (107 | ) | (14 | ) | |||||||||||||||||||
Reclassification adjustment included in net income, net of taxes of $4, $2, $7 and $3 | 7 | 3 | 13 | 5 | |||||||||||||||||||||||
Unrealized gains (losses), net of taxes of $126, $(135), $68 and $(143) | 232 | (249) | 125 | (263) | |||||||||||||||||||||||
Reclassification adjustment included in net income, net of taxes of $4, $1, $11 and $4 | 8 | 2 | 21 | 7 | |||||||||||||||||||||||
Defined benefit postretirement plans: | |||||||||||||||||||||||||||
Net actuarial loss from equity method investees arising during period, net of taxes of $(29), $0, $(29) and $0 | (53 | ) | - | (53 | ) | - | |||||||||||||||||||||
Amortization of net prior service credit included in net income, net of taxes of $(87), $(66), $(171) and $(137) | (137 | ) | (109 | ) | (274 | ) | (224 | ) | |||||||||||||||||||
Net actuarial loss from equity method investees arising during period, net of taxes of $0, $0, $(29) and $0 | - | - | (53) | - | |||||||||||||||||||||||
Amortization of net prior service credit included in net income, net of taxes of $(84), $(69), $(255) and $(206) | (137) | (112) | (411) | (336) | |||||||||||||||||||||||
Other | 1 | (1 | ) | 1 | (1 | ) | (1) | 2 | - | 1 | |||||||||||||||||
Other comprehensive income (loss) | (448 | ) | 7 | (241 | ) | 8 | 167 | (1,043) | (74) | (1,035) | |||||||||||||||||
Total comprehensive income | 3,517 | 3,665 | 7,376 | 7,134 | 3,868 | 2,643 | 11,244 | 9,777 | |||||||||||||||||||
Less: Total comprehensive income attributable to noncontrolling interest | (62 | ) | (67 | ) | (131 | ) | (127 | ) | (66) | (63) | (197) | (190) | |||||||||||||||
Total Comprehensive Income Attributable to AT&T | $ | 3,455 | $ | 3,598 | $ | 7,245 | $ | 7,007 | $ | 3,802 | $ | 2,580 | $ | 11,047 | $ | 9,587 | |||||||||||
See Notes to Consolidated Financial Statements. |
AT&T INC. | AT&T INC. | AT&T INC. | |||||||||||
CONSOLIDATED BALANCE SHEETS | CONSOLIDATED BALANCE SHEETS | CONSOLIDATED BALANCE SHEETS | |||||||||||
Dollars in millions except per share amounts | Dollars in millions except per share amounts | Dollars in millions except per share amounts | |||||||||||
June 30, | December 31, | September 30, | December 31, | ||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||
Assets | (Unaudited) | (Unaudited) | |||||||||||
Current Assets | |||||||||||||
Cash and cash equivalents | $ | 2,151 | $ | 3,185 | $ | 2,217 | $ | 3,185 | |||||
Accounts receivable - net of allowances for doubtful accounts of $614 and $878 | 12,430 | 13,606 | |||||||||||
Accounts receivable - net of allowances for doubtful accounts of $606 and $878 | 12,398 | 13,606 | |||||||||||
Prepaid expenses | 1,533 | 1,155 | 1,337 | 1,155 | |||||||||
Deferred income taxes | 1,418 | 1,470 | 1,312 | 1,470 | |||||||||
Other current assets | 1,624 | 3,611 | 1,694 | 3,611 | |||||||||
Total current assets | 19,156 | 23,027 | 18,958 | 23,027 | |||||||||
Property, plant and equipment | 263,648 | 260,279 | 267,639 | 260,279 | |||||||||
Less: accumulated depreciation and amortization | (156,165 | ) | (153,192 | ) | (159,422) | (153,192) | |||||||
Property, Plant and Equipment – Net | 107,483 | 107,087 | 108,217 | 107,087 | |||||||||
Goodwill | 69,763 | 70,842 | 69,762 | 70,842 | |||||||||
Licenses | 51,981 | 51,374 | 52,082 | 51,374 | |||||||||
Customer Lists and Relationships – Net | 1,881 | 2,757 | 1,622 | 2,757 | |||||||||
Other Intangible Assets – Net | 5,045 | 5,212 | 5,038 | 5,212 | |||||||||
Investments in and Advances to Equity Affiliates | 4,388 | 3,718 | 4,563 | 3,718 | |||||||||
Other Assets | 6,597 | 6,327 | 6,607 | 6,327 | |||||||||
Total Assets | $ | 266,294 | $ | 270,344 | $ | 266,849 | $ | 270,344 | |||||
Liabilities and Stockholders’ Equity | |||||||||||||
Current Liabilities | |||||||||||||
Debt maturing within one year | $ | 3,402 | $ | 3,453 | $ | 3,433 | $ | 3,453 | |||||
Accounts payable and accrued liabilities | 16,298 | 19,858 | 18,936 | 19,858 | |||||||||
Advanced billing and customer deposits | 3,743 | 3,872 | 3,709 | 3,872 | |||||||||
Accrued taxes | 3,705 | 1,003 | 2,209 | 1,003 | |||||||||
Dividends payable | 2,554 | 2,608 | 2,511 | 2,608 | |||||||||
Total current liabilities | 29,702 | 30,794 | 30,798 | 30,794 | |||||||||
Long-Term Debt | 61,132 | 61,300 | 60,314 | 61,300 | |||||||||
Deferred Credits and Other Noncurrent Liabilities | |||||||||||||
Deferred income taxes | 26,011 | 25,748 | 29,092 | 25,748 | |||||||||
Postemployment benefit obligation | 34,021 | 34,011 | 33,842 | 34,011 | |||||||||
Other noncurrent liabilities | 11,849 | 12,694 | 11,529 | 12,694 | |||||||||
Total deferred credits and other noncurrent liabilities | 71,881 | 72,453 | 74,463 | 72,453 | |||||||||
Stockholders’ Equity | |||||||||||||
Common stock ($1 par value, 14,000,000,000 authorized at June 30, 2012 and | |||||||||||||
December 31, 2011: issued 6,495,231,088 at June 30, 2012 and December 31, 2011 | 6,495 | 6,495 | |||||||||||
Common stock ($1 par value, 14,000,000,000 authorized at September 30, 2012 and | |||||||||||||
December 31, 2011: issued 6,495,231,088 at September 30, 2012 and December 31, 2011) | 6,495 | 6,495 | |||||||||||
Additional paid-in capital | 90,927 | 91,156 | 90,982 | 91,156 | |||||||||
Retained earnings | 27,788 | 25,453 | 28,907 | 25,453 | |||||||||
Treasury stock (690,487,327 at June 30, 2012 and 568,719,202 | |||||||||||||
Treasury stock (788,169,469 at September 30, 2012 and 568,719,202 | |||||||||||||
at December 31, 2011, at cost) | (24,869 | ) | (20,750 | ) | (28,533) | (20,750) | |||||||
Accumulated other comprehensive income | 2,939 | 3,180 | 3,106 | 3,180 | |||||||||
Noncontrolling interest | 299 | 263 | 317 | 263 | |||||||||
Total stockholders’ equity | 103,579 | 105,797 | 101,274 | 105,797 | |||||||||
Total Liabilities and Stockholders’ Equity | $ | 266,294 | $ | 270,344 | $ | 266,849 | $ | 270,344 | |||||
See Notes to Consolidated Financial Statements. |
AT&T INC. | AT&T INC. | AT&T INC. | |||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | CONSOLIDATED STATEMENTS OF CASH FLOWS | CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
Dollars in millions | Dollars in millions | Dollars in millions | |||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | |||||||||||
Six months ended | Nine months ended | ||||||||||||
June 30, | September 30, | ||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||
Operating Activities | |||||||||||||
Net income | $ | 7,617 | $ | 7,126 | $ | 11,318 | $ | 10,812 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||
Depreciation and amortization | 9,059 | 9,186 | 13,571 | 13,804 | |||||||||
Undistributed earnings from investments in equity affiliates | (355 | ) | (417 | ) | (483) | (539) | |||||||
Provision for uncollectible accounts | 572 | 523 | 835 | 805 | |||||||||
Deferred income tax (benefit) expense and noncurrent unrecognized tax benefits | (639 | ) | 2,818 | ||||||||||
Net loss (gain) from sale of investments, net of impairments | 2 | (44 | ) | ||||||||||
Deferred income tax expense and noncurrent unrecognized tax benefits | 3,441 | 4,942 | |||||||||||
Net (gain) loss from sale of investments, net of impairments | (27) | (57) | |||||||||||
Changes in operating assets and liabilities: | |||||||||||||
Accounts receivable | (220 | ) | (521 | ) | (450) | (573) | |||||||
Other current assets | 1,228 | 1,007 | 1,459 | 1,342 | |||||||||
Accounts payable and accrued liabilities | 441 | (2,037 | ) | 387 | (2,533) | ||||||||
Other - net | (246 | ) | (884 | ) | (1,107) | (853) | |||||||
Total adjustments | 9,842 | 9,631 | 17,626 | 16,338 | |||||||||
Net Cash Provided by Operating Activities | 17,459 | 16,757 | 28,944 | 27,150 | |||||||||
Investing Activities | |||||||||||||
Construction and capital expenditures: | |||||||||||||
Capital expenditures | (8,742 | ) | (9,405 | ) | (13,619) | (14,625) | |||||||
Interest during construction | (130 | ) | (77 | ) | (197) | (119) | |||||||
Acquisitions, net of cash acquired | (477 | ) | (62 | ) | (551) | (430) | |||||||
Dispositions | 800 | 30 | 807 | 76 | |||||||||
(Purchases) and sales of securities, net | 124 | 45 | |||||||||||
Sales (purchases) of securities, net | 311 | 45 | |||||||||||
Other | - | 19 | (2) | 28 | |||||||||
Net Cash Used in Investing Activities | (8,425 | ) | (9,450 | ) | (13,251) | (15,025) | |||||||
Financing Activities | |||||||||||||
Net change in short-term borrowings with original maturities of three months or less | - | (1,603 | ) | - | (1,620) | ||||||||
Issuance of long-term debt | 6,935 | 2,985 | 6,935 | 7,935 | |||||||||
Repayment of long-term debt | (7,035 | ) | (1,290 | ) | (8,042) | (1,298) | |||||||
Purchase of treasury stock | (4,623 | ) | - | (8,374) | - | ||||||||
Issuance of treasury stock | 376 | 199 | 460 | 216 | |||||||||
Dividends paid | (5,187 | ) | (5,082 | ) | (7,738) | (7,627) | |||||||
Other | (534 | ) | (122 | ) | 98 | (406) | |||||||
Net Cash Used in Financing Activities | (10,068 | ) | (4,913 | ) | (16,661) | (2,800) | |||||||
Net (decrease) increase in cash and cash equivalents | (1,034 | ) | 2,394 | (968) | 9,325 | ||||||||
Cash and cash equivalents beginning of year | 3,185 | 1,437 | 3,185 | 1,437 | |||||||||
Cash and Cash Equivalents End of Period | $ | 2,151 | $ | 3,831 | $ | 2,217 | $ | 10,762 | |||||
Cash paid during the six months ended June 30 for: | |||||||||||||
Cash paid during the nine months ended September 30 for: | |||||||||||||
Interest | $ | 2,373 | $ | 2,200 | $ | 3,335 | $ | 3,066 | |||||
Income taxes, net of refunds | $ | 127 | $ | (196 | ) | $ | 390 | $ | (121) | ||||
See Notes to Consolidated Financial Statements. | See Notes to Consolidated Financial Statements. | See Notes to Consolidated Financial Statements. |
AT&T INC. | AT&T INC. | AT&T INC. | |||||||||
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY | CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY | CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY | |||||||||
Dollars and shares in millions except per share amounts | Dollars and shares in millions except per share amounts | Dollars and shares in millions except per share amounts | |||||||||
(Unaudited) | (Unaudited) | (Unaudited) | |||||||||
June 30, 2012 | September 30, 2012 | ||||||||||
Shares | Amount | Shares | Amount | ||||||||
Common Stock | |||||||||||
Balance at beginning of year | 6,495 | $ | 6,495 | 6,495 | $ | 6,495 | |||||
Issuance of stock | - | - | - | - | |||||||
Balance at end of period | 6,495 | $ | 6,495 | 6,495 | $ | 6,495 | |||||
Additional Paid-In Capital | |||||||||||
Balance at beginning of year | $ | 91,156 | $ | 91,156 | |||||||
Issuance of treasury stock | 109 | 119 | |||||||||
Share-based payments | (178 | ) | (133) | ||||||||
Share of equity method investee capital transactions | (160 | ) | (160) | ||||||||
Balance at end of period | $ | 90,927 | $ | 90,982 | |||||||
Retained Earnings | |||||||||||
Balance at beginning of year | $ | 25,453 | $ | 25,453 | |||||||
Net income attributable to AT&T ($1.27 per diluted share) | 7,486 | ||||||||||
Dividends to stockholders ($0.88 per share) | (5,137 | ) | |||||||||
Net income attributable to AT&T ($1.90 per diluted share) | 11,121 | ||||||||||
Dividends to stockholders ($1.32 per share) | (7,646) | ||||||||||
Other | (14 | ) | (21) | ||||||||
Balance at end of period | $ | 27,788 | $ | 28,907 | |||||||
Treasury Stock | |||||||||||
Balance at beginning of year | (568 | ) | $ | (20,750 | ) | (568) | $ | (20,750) | |||
Purchase of stock | (143 | ) | (4,623 | ) | (245) | (8,374) | |||||
Issuance of treasury stock | 21 | 504 | 25 | 591 | |||||||
Balance at end of period | (690 | ) | $ | (24,869 | ) | (788) | $ | (28,533) | |||
Accumulated Other Comprehensive Income Attributable to AT&T, net of tax | |||||||||||
Balance at beginning of year | $ | 3,180 | $ | 3,180 | |||||||
Other comprehensive loss attributable to AT&T | (241 | ) | (74) | ||||||||
Balance at end of period | $ | 2,939 | $ | 3,106 | |||||||
Noncontrolling Interest | |||||||||||
Balance at beginning of year | $ | 263 | $ | 263 | |||||||
Net income attributable to noncontrolling interest | 131 | 197 | |||||||||
Distributions | (95 | ) | (143) | ||||||||
Balance at end of period | $ | 299 | $ | 317 | |||||||
Total Stockholders’ Equity at beginning of year | $ | 105,797 | $ | 105,797 | |||||||
Total Stockholders’ Equity at end of period | $ | 103,579 | $ | 101,274 | |||||||
See Notes to Consolidated Financial Statements. |
Three months ended | Six months ended | Three months ended | Nine months ended | ||||||||||||||||||||||||
June 30, | June 30, | September 30, | September 30, | ||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||||
Numerators | |||||||||||||||||||||||||||
Numerator for basic earnings per share: | |||||||||||||||||||||||||||
Net Income | $ | 3,965 | $ | 3,658 | $ | 7,617 | $ | 7,126 | $ | 3,701 | $ | 3,686 | $ | 11,318 | $ | 10,812 | |||||||||||
Net income attributable to noncontrolling interest | (63 | ) | (67 | ) | (131 | ) | (127 | ) | (66) | (63) | (197) | (190) | |||||||||||||||
Net Income attributable to AT&T | 3,902 | 3,591 | 7,486 | 6,999 | 3,635 | 3,623 | 11,121 | 10,622 | |||||||||||||||||||
Dilutive potential common shares: | |||||||||||||||||||||||||||
Other share-based payment | 2 | 3 | 6 | 6 | 3 | 3 | 9 | 8 | |||||||||||||||||||
Numerator for diluted earnings per share | $ | 3,904 | $ | 3,594 | $ | 7,492 | $ | 7,005 | $ | 3,638 | $ | 3,626 | $ | 11,130 | $ | 10,630 | |||||||||||
Denominators (000,000) | |||||||||||||||||||||||||||
Denominator for basic earnings per share: | |||||||||||||||||||||||||||
Weighted average number of common shares outstanding | 5,855 | 5,932 | 5,886 | 5,929 | 5,771 | 5,936 | 5,848 | 5,931 | |||||||||||||||||||
Dilutive potential common shares: | |||||||||||||||||||||||||||
Stock options | 4 | 5 | 4 | 4 | 4 | 3 | 4 | 4 | |||||||||||||||||||
Other share-based payment | 17 | 16 | 17 | 15 | 17 | 15 | 17 | 15 | |||||||||||||||||||
Denominator for diluted earnings per share | 5,876 | 5,953 | 5,907 | 5,948 | 5,792 | 5,954 | 5,869 | 5,950 | |||||||||||||||||||
Basic earnings per share attributable to AT&T | $ | 0.67 | $ | 0.60 | $ | 1.27 | $ | 1.18 | $ | 0.63 | $ | 0.61 | $ | 1.90 | $ | 1.79 | |||||||||||
Diluted earnings per share attributable to AT&T | $ | 0.66 | $ | 0.60 | $ | 1.27 | $ | 1.18 | $ | 0.63 | $ | 0.61 | $ | 1.90 | $ | 1.79 |
For the three months ended June 30, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||
For the three months ended September 30, 2012 | For the three months ended September 30, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||
Wireless | Wireline | Advertising Solutions | Other | Consolidations | Consolidated Results | Wireless | Wireline | Advertising Solutions | Other | Consolidations | Consolidated Results | |||||||||||||||||||||||||||||||||||||
Total segment operating revenue | $ | 16,353 | $ | 14,904 | $ | 305 | $ | 13 | $ | - | $ | 31,575 | ||||||||||||||||||||||||||||||||||||
Total segment operating revenues | $ | 16,632 | $ | 14,813 | $ | - | $ | 14 | $ | - | $ | 31,459 | ||||||||||||||||||||||||||||||||||||
Operations and support expenses | 9,705 | 10,085 | 226 | 243 | - | 20,259 | 10,549 | 10,134 | - | 227 | - | 20,910 | ||||||||||||||||||||||||||||||||||||
Depreciation and amortization expense | 1,696 | 2,766 | 29 | 8 | - | 4,499 | ||||||||||||||||||||||||||||||||||||||||||
Total segment operating expense | 11,401 | 12,851 | 255 | 251 | - | 24,758 | ||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization expenses | 1,730 | 2,774 | - | 8 | - | 4,512 | ||||||||||||||||||||||||||||||||||||||||||
Total segment operating expenses | 12,279 | 12,908 | - | 235 | - | 25,422 | ||||||||||||||||||||||||||||||||||||||||||
Segment operating income (loss) | 4,952 | 2,053 | 50 | (238 | ) | - | 6,817 | 4,353 | 1,905 | - | (221 | ) | - | 6,037 | ||||||||||||||||||||||||||||||||||
Interest expense | - | - | - | - | 941 | 941 | - | - | - | - | 824 | 824 | ||||||||||||||||||||||||||||||||||||
Equity in net income (loss) of affiliates | (15 | ) | (1 | ) | - | 148 | - | 132 | (17 | ) | - | - | 199 | - | 182 | |||||||||||||||||||||||||||||||||
Other income (expense) - net | - | - | - | - | 23 | 23 | ||||||||||||||||||||||||||||||||||||||||||
Other income (expense) – net | - | - | - | - | 47 | 47 | ||||||||||||||||||||||||||||||||||||||||||
Segment income (loss) before income taxes | $ | 4,937 | $ | 2,052 | $ | 50 | $ | (90 | ) | $ | (918 | ) | $ | 6,031 | $ | 4,336 | $ | 1,905 | $ | - | $ | (22 | ) | $ | (777 | ) | $ | 5,442 | ||||||||||||||||||||
For the six months ended June 30, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||
For the nine months ended September 30, 2012 | For the nine months ended September 30, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||
Wireless | Wireline | Advertising Solutions | Other | Consolidations | Consolidated Results | Wireless | Wireline | Advertising Solutions | Other | Consolidations | Consolidated Results | |||||||||||||||||||||||||||||||||||||
Total segment operating revenue | $ | 32,489 | $ | 29,832 | $ | 1,049 | $ | 27 | $ | - | $ | 63,397 | ||||||||||||||||||||||||||||||||||||
Total segment operating revenues | $ | 49,121 | $ | 44,645 | $ | 1,049 | $ | 41 | $ | - | $ | 94,856 | ||||||||||||||||||||||||||||||||||||
Operations and support expenses | 19,788 | 20,382 | 773 | 477 | - | 41,420 | 30,337 | 30,516 | 773 | 704 | - | 62,330 | ||||||||||||||||||||||||||||||||||||
Depreciation and amortization expense | 3,362 | 5,574 | 106 | 17 | - | 9,059 | ||||||||||||||||||||||||||||||||||||||||||
Total segment operating expense | 23,150 | 25,956 | 879 | 494 | - | 50,479 | ||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization expenses | 5,092 | 8,348 | 106 | 25 | - | 13,571 | ||||||||||||||||||||||||||||||||||||||||||
Total segment operating expenses | 35,429 | 38,864 | 879 | 729 | - | 75,901 | ||||||||||||||||||||||||||||||||||||||||||
Segment operating income (loss) | 9,339 | 3,876 | 170 | (467 | ) | - | 12,918 | 13,692 | 5,781 | 170 | (688 | ) | - | 18,955 | ||||||||||||||||||||||||||||||||||
Interest expense | - | - | - | - | 1,800 | 1,800 | - | - | - | - | 2,624 | 2,624 | ||||||||||||||||||||||||||||||||||||
Equity in net income (loss) of affiliates | (28 | ) | (1 | ) | - | 384 | - | 355 | (45 | ) | (1 | ) | - | 583 | - | 537 | ||||||||||||||||||||||||||||||||
Other income (expense) - net | - | - | - | - | 75 | 75 | ||||||||||||||||||||||||||||||||||||||||||
Other income (expense) – net | - | - | - | - | 122 | 122 | ||||||||||||||||||||||||||||||||||||||||||
Segment income (loss) before income taxes | $ | 9,311 | $ | 3,875 | $ | 170 | $ | (83 | ) | $ | (1,725 | ) | $ | 11,548 | $ | 13,647 | $ | 5,780 | $ | 170 | $ | (105 | ) | $ | (2,502 | ) | $ | 16,990 | ||||||||||||||||||||
For the three months ended June 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||
For the three months ended September 30, 2011 | For the three months ended September 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||
Wireless | Wireline | Advertising Solutions | Other | Consolidations | Consolidated Results | Wireless | Wireline | Advertising Solutions | Other | Consolidations | Consolidated Results | |||||||||||||||||||||||||||||||||||||
Total segment operating revenue | $ | 15,603 | $ | 15,030 | $ | 841 | $ | 21 | $ | - | $ | 31,495 | ||||||||||||||||||||||||||||||||||||
Total segment operating revenues | $ | 15,606 | $ | 15,055 | $ | 803 | $ | 14 | $ | - | $ | 31,478 | ||||||||||||||||||||||||||||||||||||
Operations and support expenses | 9,786 | 10,145 | 581 | 216 | - | 20,728 | 9,376 | 10,295 | 554 | 400 | - | 20,625 | ||||||||||||||||||||||||||||||||||||
Depreciation and amortization expense | 1,615 | 2,876 | 101 | 10 | - | 4,602 | ||||||||||||||||||||||||||||||||||||||||||
Total segment operating expense | 11,401 | 13,021 | 682 | 226 | - | 25,330 | ||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization expenses | 1,620 | 2,892 | 94 | 12 | - | 4,618 | ||||||||||||||||||||||||||||||||||||||||||
Total segment operating expenses | 10,996 | 13,187 | 648 | 412 | - | 25,243 | ||||||||||||||||||||||||||||||||||||||||||
Segment operating income (loss) | 4,202 | 2,009 | 159 | (205 | ) | - | 6,165 | 4,610 | 1,868 | 155 | (398 | ) | - | 6,235 | ||||||||||||||||||||||||||||||||||
Interest expense | - | - | - | - | 848 | 848 | - | - | - | - | 889 | 889 | ||||||||||||||||||||||||||||||||||||
Equity in net income (loss) of affiliates | (7 | ) | - | - | 214 | - | 207 | (8 | ) | - | - | 201 | - | 193 | ||||||||||||||||||||||||||||||||||
Other income (expense) - net | - | - | - | - | 27 | 27 | ||||||||||||||||||||||||||||||||||||||||||
Other income (expense) – net | - | - | - | - | 46 | 46 | ||||||||||||||||||||||||||||||||||||||||||
Segment income (loss) before income taxes | $ | 4,195 | $ | 2,009 | $ | 159 | $ | 9 | $ | (821 | ) | $ | 5,551 | $ | 4,602 | $ | 1,868 | $ | 155 | $ | (197 | ) | $ | (843 | ) | $ | 5,585 | |||||||||||||||||||||
For the six months ended June 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||
For the nine months ended September 30, 2011 | For the nine months ended September 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||
Wireless | Wireline | Advertising Solutions | Other | Consolidations | Consolidated Results | Wireless | Wireline | Advertising Solutions | Other | Consolidations | Consolidated Results | |||||||||||||||||||||||||||||||||||||
Total segment operating revenue | $ | 30,913 | $ | 30,081 | $ | 1,709 | $ | 39 | $ | - | $ | 62,742 | ||||||||||||||||||||||||||||||||||||
Total segment operating revenues | $ | 46,519 | $ | 45,136 | $ | 2,512 | $ | 53 | $ | - | $ | 94,220 | ||||||||||||||||||||||||||||||||||||
Operations and support expenses | 19,647 | 20,457 | 1,153 | 326 | - | 41,583 | 29,023 | 30,752 | 1,707 | 726 | - | 62,208 | ||||||||||||||||||||||||||||||||||||
Depreciation and amortization expense | 3,121 | 5,834 | 207 | 24 | - | 9,186 | ||||||||||||||||||||||||||||||||||||||||||
Total segment operating expense | 22,768 | 26,291 | 1,360 | 350 | - | 50,769 | ||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization expenses | 4,741 | 8,726 | 301 | 36 | - | 13,804 | ||||||||||||||||||||||||||||||||||||||||||
Total segment operating expenses | 33,764 | 39,478 | 2,008 | 762 | - | 76,012 | ||||||||||||||||||||||||||||||||||||||||||
Segment operating income (loss) | 8,145 | 3,790 | 349 | (311 | ) | - | 11,973 | 12,755 | 5,658 | 504 | (709 | ) | - | 18,208 | ||||||||||||||||||||||||||||||||||
Interest expense | - | - | - | - | 1,694 | 1,694 | - | - | - | - | 2,583 | 2,583 | ||||||||||||||||||||||||||||||||||||
Equity in net income (loss) of affiliates | (11 | ) | - | - | 467 | - | 456 | (19 | ) | - | - | 668 | - | 649 | ||||||||||||||||||||||||||||||||||
Other income (expense) - net | - | - | - | - | 86 | 86 | ||||||||||||||||||||||||||||||||||||||||||
Other income (expense) – net | - | - | - | - | 132 | 132 | ||||||||||||||||||||||||||||||||||||||||||
Segment income (loss) before income taxes | $ | 8,134 | $ | 3,790 | $ | 349 | $ | 156 | $ | (1,608 | ) | $ | 10,821 | $ | 12,736 | $ | 5,658 | $ | 504 | $ | (41 | ) | $ | (2,451 | ) | $ | 16,406 |
Three months ended | Six months ended | Three months ended | Nine months ended | ||||||||||||||||||||||||
June 30, | June 30, | September 30, | September 30, | ||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||||
Pension cost: | |||||||||||||||||||||||||||
Service cost – benefits earned during the period | $ | 304 | $ | 296 | $ | 614 | $ | 593 | $ | 301 | $ | 297 | $ | 915 | $ | 890 | |||||||||||
Interest cost on projected benefit obligation | 700 | 739 | 1,400 | 1,479 | 700 | 740 | 2,100 | 2,219 | |||||||||||||||||||
Expected return on assets | (880 | ) | (922 | ) | (1,760 | ) | (1,844 | ) | (880) | (923) | (2,640) | (2,767) | |||||||||||||||
Amortization of prior service (credit) | (4 | ) | (4 | ) | (8 | ) | (8 | ) | (3) | (4) | (11) | (12) | |||||||||||||||
Net pension cost | $ | 120 | $ | 109 | $ | 246 | $ | 220 | $ | 118 | $ | 110 | $ | 364 | $ | 330 | |||||||||||
Postretirement cost: | |||||||||||||||||||||||||||
Service cost – benefits earned during the period | $ | 82 | $ | 91 | $ | 166 | $ | 181 | $ | 81 | $ | 90 | $ | 247 | $ | 271 | |||||||||||
Interest cost on accumulated postretirement benefit obligation | 447 | 512 | 894 | 1,025 | 446 | 513 | 1,340 | 1,538 | |||||||||||||||||||
Expected return on assets | (201 | ) | (260 | ) | (401 | ) | (520 | ) | (200) | (260) | (601) | (780) | |||||||||||||||
Amortization of prior service (credit) | (215 | ) | (173 | ) | (432 | ) | (347 | ) | (215) | (173) | (647) | (520) | |||||||||||||||
Net postretirement cost | $ | 113 | $ | 170 | $ | 227 | $ | 339 | $ | 112 | $ | 170 | $ | 339 | $ | 509 | |||||||||||
Combined net pension and postretirement cost | $ | 233 | $ | 279 | $ | 473 | $ | 559 | $ | 230 | $ | 280 | $ | 703 | $ | 839 |
Level 1 | Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that we have the ability to access. |
Level 2 | Inputs to the valuation methodology include: |
· | Quoted prices for similar assets and liabilities in active markets. |
· | Quoted prices for identical or similar assets or liabilities in inactive markets. |
· | Inputs other than quoted market prices that are observable for the asset or liability. |
· | Inputs that are derived principally from or corroborated by observable market data by correlation or other means. |
Level 3 | Inputs to the valuation methodology are unobservable and significant to the fair value measurement. |
· | Fair value is often based on developed models in which there are few, if any, external observations. |
June 30, 2012 | December 31, 2011 | September 30, 2012 | December 31, 2011 | |||||||||||||||||||
Carrying | Fair | Carrying | Fair | Carrying | Fair | Carrying | Fair | |||||||||||||||
Amount | Value | Amount | Value | Amount | Value | Amount | Value | |||||||||||||||
Notes and debentures | $ | 64,295 | $ | 75,191 | $ | 64,514 | $ | 73,738 | $ | 63,510 | $ | 76,432 | $ | 64,514 | $ | 73,738 | ||||||
Investment securities | 2,061 | 2,061 | 2,092 | 2,092 | 1,950 | 1,950 | 2,092 | 2,092 |
June 30, 2012 | September 30, 2012 | |||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Available-for-Sale Securities | Available-for-Sale Securities | |||||||||||||||||||||||||||
Domestic equities | $ | 1,007 | $ | - | $ | - | $ | 1,007 | Domestic equities | $ | 865 | $ | - | $ | - | $ | 865 | |||||||||||
International equities | 516 | - | - | 516 | International equities | 445 | - | - | 445 | |||||||||||||||||||
Fixed income bonds | - | 444 | - | 444 | Fixed income bonds | - | 599 | - | 599 | |||||||||||||||||||
Asset Derivatives1 | Asset Derivatives1 | |||||||||||||||||||||||||||
Interest rate swaps | - | 335 | - | 335 | Interest rate swaps | - | 306 | - | 306 | |||||||||||||||||||
Cross-currency swaps | - | 116 | - | 116 | Cross-currency swaps | - | 472 | - | 472 | |||||||||||||||||||
Foreign exchange contracts | - | 3 | - | 3 | Foreign exchange contracts | - | 1 | - | 1 | |||||||||||||||||||
Liability Derivatives1 | Liability Derivatives1 | |||||||||||||||||||||||||||
Cross-currency swaps | - | (1,011 | ) | - | (1,011 | ) | Cross-currency swaps | - | (791) | - | (791) | |||||||||||||||||
Foreign exchange contracts | - | (8 | ) | - | (8 | ) | Foreign exchange contracts | - | (2) | - | (2) | |||||||||||||||||
December 31, 2011 | December 31, 2011 | |||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Available-for-Sale Securities | Available-for-Sale Securities | |||||||||||||||||||||||||||
Domestic equities | $ | 947 | $ | - | $ | - | $ | 947 | Domestic equities | $ | 947 | $ | - | $ | - | $ | 947 | |||||||||||
International equities | 495 | - | - | 495 | International equities | 495 | - | - | 495 | |||||||||||||||||||
Fixed income bonds | - | 562 | - | 562 | Fixed income bonds | - | 562 | - | 562 | |||||||||||||||||||
Asset Derivatives1 | Asset Derivatives1 | |||||||||||||||||||||||||||
Interest rate swaps | - | 521 | - | 521 | Interest rate swaps | - | 521 | - | 521 | |||||||||||||||||||
Cross-currency swaps | - | 144 | - | 144 | Cross-currency swaps | - | 144 | - | 144 | |||||||||||||||||||
Foreign exchange contracts | - | 2 | - | 2 | Foreign exchange contracts | - | 2 | - | 2 | |||||||||||||||||||
Liability Derivatives1 | Liability Derivatives1 | |||||||||||||||||||||||||||
Cross-currency swaps | - | (820 | ) | - | (820 | ) | Cross-currency swaps | - | (820) | - | (820) | |||||||||||||||||
Interest rate locks | - | (173 | ) | - | (173 | ) | Interest rate locks | - | (173) | - | (173) | |||||||||||||||||
Foreign exchange contracts | - | (9 | ) | - | (9 | ) | Foreign exchange contracts | - | (9) | - | (9) | |||||||||||||||||
1 Derivatives designated as hedging instruments are reflected as other assets, other liabilities and, for a portion of interest rate swaps, accounts receivable. |
1 | Derivatives designated as hedging instruments are reflected as other assets, other liabilities and, for a portion of interest rate swaps, accounts receivable. |
June 30, | December 31, | September 30, | December 31, | |||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Interest rate swaps | $ | 4,000 | $ | 8,800 | $ | 3,000 | $ | 8,800 | ||||||||
Cross-currency swaps | 9,481 | 7,502 | 9,481 | 7,502 | ||||||||||||
Interest rate locks | - | 800 | - | 800 | ||||||||||||
Foreign exchange contracts | 174 | 207 | 122 | 207 | ||||||||||||
Total | $ | 13,655 | $ | 17,309 | $ | 12,603 | $ | 17,309 |
Following is the related hedged items affecting our financial position and performance: | Following is the related hedged items affecting our financial position and performance: | |||||||||||||||||||||||||||||||
Effect of Derivatives on the Consolidated Statements of Income | Effect of Derivatives on the Consolidated Statements of Income | Effect of Derivatives on the Consolidated Statements of Income | ||||||||||||||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||||||||||||||||||
Three months ended | Six months ended | September 30, | September 30, | |||||||||||||||||||||||||||||
Fair Value Hedging Relationships | June 30, 2012 | June 30, 2011 | June 30, 2012 | June 30, 2011 | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||||||||
Interest rate swaps (Interest expense): | ||||||||||||||||||||||||||||||||
Gain (Loss) on interest rate swaps | $ | (76 | ) | $ | 75 | $ | (137 | ) | $ | (11 | ) | $ | (21 | ) | $ | 92 | $ | (158 | ) | $ | 81 | |||||||||||
Gain (Loss) on long-term debt | 76 | (75 | ) | 137 | 11 | 21 | (92 | ) | 158 | (81 | ) |
Three months ended | Nine months ended | |||||||||||||||||||||||||||||||
Three months ended | Six months ended | September 30, | September 30, | |||||||||||||||||||||||||||||
Cash Flow Hedging Relationships | June 30, 2012 | June 30, 2011 | June 30, 2012 | June 30, 2011 | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||||||||
Cross-currency swaps: | ||||||||||||||||||||||||||||||||
Gain (Loss) recognized in accumulated OCI | $ | (160 | ) | $ | (117 | ) | $ | (165 | ) | $ | (149 | ) | $ | 355 | $ | (266 | ) | $ | 190 | $ | (415 | ) | ||||||||||
Interest rate locks: | ||||||||||||||||||||||||||||||||
Gain (Loss) recognized in accumulated OCI | - | 87 | - | 122 | - | (105 | ) | - | 17 | |||||||||||||||||||||||
Interest income (expense) reclassified from | ||||||||||||||||||||||||||||||||
accumulated OCI into income | (11 | ) | (5 | ) | (20 | ) | (8 | ) | ||||||||||||||||||||||||
Interest income (expense) reclassified from accumulated OCI into income | (12 | ) | (3 | ) | (32 | ) | (11 | ) | ||||||||||||||||||||||||
Foreign exchange contracts: | ||||||||||||||||||||||||||||||||
Gain (Loss) recognized in accumulated OCI | (5 | ) | (3 | ) | - | 5 | 3 | (13 | ) | 3 | (8 | ) |
Second Quarter | Six-Month Period | Third Quarter | Nine-Month Period | |||||||||||||||||||||||||||||||||||||||||||||
2012 | 2011 | Percent Change | 2012 | 2011 | Percent Change | 2012 | 2011 | Percent Change | 2012 | 2011 | Percent Change | |||||||||||||||||||||||||||||||||||||
Operating Revenues | $ | 31,575 | $ | 31,495 | 0.3 | % | $ | 63,397 | $ | 62,742 | 1.0 | % | $ | 31,459 | $ | 31,478 | (0.1) | % | $ | 94,856 | $ | 94,220 | 0.7 | % | ||||||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||||||||||||||||||||||||
Cost of services and sales | 12,369 | 12,756 | (3.0 | ) | 25,282 | 25,569 | (1.1 | ) | 12,718 | 12,656 | 0.5 | 38,000 | 38,225 | (0.6 | ) | |||||||||||||||||||||||||||||||||
Selling, general and administrative | 7,890 | 7,972 | (1.0 | ) | 16,138 | 16,014 | 0.8 | 8,192 | 7,969 | 2.8 | 24,330 | 23,983 | 1.4 | |||||||||||||||||||||||||||||||||||
Depreciation and amortization | 4,499 | 4,602 | (2.2 | ) | 9,059 | 9,186 | (1.4 | ) | 4,512 | 4,618 | (2.3) | 13,571 | 13,804 | (1.7 | ) | |||||||||||||||||||||||||||||||||
Total Operating Expenses | 24,758 | 25,330 | (2.3 | ) | 50,479 | 50,769 | (0.6 | ) | 25,422 | 25,243 | 0.7 | 75,901 | 76,012 | (0.1 | ) | |||||||||||||||||||||||||||||||||
Operating Income | 6,817 | 6,165 | 10.6 | 12,918 | 11,973 | 7.9 | 6,037 | 6,235 | (3.2) | 18,955 | 18,208 | 4.1 | ||||||||||||||||||||||||||||||||||||
Income Before Income Taxes | 6,031 | 5,551 | 8.6 | 11,548 | 10,821 | 6.7 | 5,442 | 5,585 | (2.6) | 16,990 | 16,406 | 3.6 | ||||||||||||||||||||||||||||||||||||
Net Income | 3,965 | 3,658 | 8.4 | 7,617 | 7,126 | 6.9 | 3,701 | 3,686 | 0.4 | 11,318 | 10,812 | 4.7 | ||||||||||||||||||||||||||||||||||||
Net Income Attributable to AT&T | $ | 3,902 | $ | 3,591 | 8.7 | % | $ | 7,486 | $ | 6,999 | 7.0 | % | $ | 3,635 | $ | 3,623 | 0.3 | % | $ | 11,121 | $ | 10,622 | 4.7 | % |
Selected Financial and Operating Data | ||||||||||||||||
June 30, | September 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Wireless subscribers (000) | 105,206 | 98,615 | 105,871 | 100,738 | ||||||||||||
Network access lines in service (000) | 34,274 | 39,275 | 33,088 | 37,956 | ||||||||||||
Total wireline broadband connections (000) | 16,434 | 16,473 | 16,392 | 16,476 | ||||||||||||
Debt ratio1 | 38.4 | % | 36.8 | % | 38.6 | % | 38.5 | % | ||||||||
Ratio of earnings to fixed charges2 | 5.36 | 5.40 | 5.36 | 5.41 | ||||||||||||
Number of AT&T employees | 242,380 | 258,870 | ||||||||||||||
Number of AT&T employees3 | 241,130 | 256,210 |
1 | Debt ratios are calculated by dividing total debt (debt maturing within one year plus long-term debt) by total capital (total debt plus total stockholders’ equity) and do not consider cash available to pay down debt. See our “Liquidity and Capital Resources” section for discussion. |
2 | See Exhibit 12. |
3 | Includes the reduction of approximately 8,200 employees as a result of the sale of our Advertising Solutions segment. |
Wireless | ||||||||||||||||||||||||||||||||||||||||||||||||
Segment Results | Segment Results | |||||||||||||||||||||||||||||||||||||||||||||||
Third Quarter | Nine-Month Period | |||||||||||||||||||||||||||||||||||||||||||||||
Second Quarter | Six-Month Period | 2012 | 2011 | Percent Change | 2012 | 2011 | Percent Change | |||||||||||||||||||||||||||||||||||||||||
2012 | 2011 | Percent Change | 2012 | 2011 | Percent Change | |||||||||||||||||||||||||||||||||||||||||||
Segment operating revenues | ||||||||||||||||||||||||||||||||||||||||||||||||
Service | $ | 14,765 | $ | 14,157 | 4.3 | % | $ | 29,331 | $ | 28,118 | 4.3 | % | $ | 14,906 | $ | 14,261 | 4.5 | % | $ | 44,237 | $ | 42,379 | 4.4 | % | ||||||||||||||||||||||||
Equipment | 1,588 | 1,446 | 9.8 | 3,158 | 2,795 | 13.0 | 1,726 | 1,345 | 28.3 | 4,884 | 4,140 | 18.0 | ||||||||||||||||||||||||||||||||||||
Total Segment Operating Revenues | 16,353 | 15,603 | 4.8 | 32,489 | 30,913 | 5.1 | 16,632 | 15,606 | 6.6 | 49,121 | 46,519 | 5.6 | ||||||||||||||||||||||||||||||||||||
Segment operating expenses | ||||||||||||||||||||||||||||||||||||||||||||||||
Operations and support | 9,705 | 9,786 | (0.8) | 19,788 | 19,647 | 0.7 | 10,549 | 9,376 | 12.5 | 30,337 | 29,023 | 4.5 | ||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 1,696 | 1,615 | 5.0 | 3,362 | 3,121 | 7.7 | 1,730 | 1,620 | 6.8 | 5,092 | 4,741 | 7.4 | ||||||||||||||||||||||||||||||||||||
Total Segment Operating Expenses | 11,401 | 11,401 | - | 23,150 | 22,768 | 1.7 | 12,279 | 10,996 | 11.7 | 35,429 | 33,764 | 4.9 | ||||||||||||||||||||||||||||||||||||
Segment Operating Income | 4,952 | 4,202 | 17.8 | 9,339 | 8,145 | 14.7 | 4,353 | 4,610 | (5.6) | 13,692 | 12,755 | 7.3 | ||||||||||||||||||||||||||||||||||||
Equity in Net Income (Loss) of Affiliates | (15) | (7) | - | (28) | (11) | - | (17) | (8) | - | (45) | (19) | - | ||||||||||||||||||||||||||||||||||||
Segment Income | $ | 4,937 | $ | 4,195 | 17.7 | % | $ | 9,311 | $ | 8,134 | 14.5 | % | $ | 4,336 | $ | 4,602 | (5.8) | % | $ | 13,647 | $ | 12,736 | 7.2 | % |
The following table highlights other key measures of performance for the Wireless segment: | ||||||||||||||||||||||||
Third Quarter | Nine-Month Period | |||||||||||||||||||||||
2012 | 2011 | Percent Change | 2012 | 2011 | Percent Change | |||||||||||||||||||
Wireless Subscribers (000)1 | 105,871 | 100,738 | 5.1 | % | ||||||||||||||||||||
Gross Subscriber Additions (000)2 | 4,914 | 5,946 | (17.4 | )% | 15,162 | 17,154 | (11.6 | ) | ||||||||||||||||
Net Subscriber Additions (000)2 | 678 | 2,123 | (68.1 | ) | 2,670 | 5,202 | (48.7 | ) | ||||||||||||||||
Total Churn4 | 1.34 | % | 1.28 | % | 6 BP | 1.33 | % | 1.36 | % | (3) BP | ||||||||||||||
Postpaid Subscribers (000) | 69,747 | 68,614 | 1.7 | % | ||||||||||||||||||||
Net Postpaid Subscriber Additions (000)2 | 151 | 319 | (52.7 | )% | 658 | 712 | (7.6 | ) | ||||||||||||||||
Postpaid Churn4 | 1.08 | % | 1.15 | % | (7) BP | 1.05 | % | 1.16 | % | (11) BP | ||||||||||||||
Prepaid Subscribers (000) | 7,545 | 7,059 | 6.9 | % | ||||||||||||||||||||
Net Prepaid Subscriber Additions (000)2 | 77 | 293 | (73.7 | )% | 294 | 515 | (42.9 | ) | ||||||||||||||||
Reseller Subscribers (000) | 14,573 | 13,028 | 11.9 | % | ||||||||||||||||||||
Net Reseller Subscriber Additions (000)2 | 137 | 473 | (71.0 | )% | 793 | 1,282 | (38.1 | ) | ||||||||||||||||
Connected Device Subscribers (000)3 | 14,006 | 12,037 | 16.4 | % | ||||||||||||||||||||
Net Connected Device Subscriber Additions (000) | 313 | 1,038 | (69.8 | )% | 925 | 2,693 | (65.7 | ) |
Second Quarter | Six-Month Period | |||||||||||||||||||||||
2012 | 2011 | Percent Change | 2012 | 2011 | Percent Change | |||||||||||||||||||
Wireless Subscribers (000)1 | 105,206 | 98,615 | 6.7 | % | ||||||||||||||||||||
Gross Subscriber Additions (000)2 | 4,970 | 5,301 | (6.2) | % | 10,248 | 11,208 | (8.6) | |||||||||||||||||
Net Subscriber Additions (000)2 | 1,266 | 1,095 | 15.6 | 1,992 | 3,079 | (35.3) | ||||||||||||||||||
Total Churn | 1.18 | % | 1.43 | % | (25) BP | 1.32 | % | 1.40 | % | (8) BP | ||||||||||||||
Postpaid Subscribers (000) | 69,666 | 68,353 | 1.9 | % | ||||||||||||||||||||
Net Postpaid Subscriber Additions (000)2 | 320 | 331 | (3.3) | % | 507 | 393 | 29.0 | |||||||||||||||||
Postpaid Churn | 0.97 | % | 1.15 | % | (18) BP | 1.03 | % | 1.17 | % | (14) BP | ||||||||||||||
Prepaid Subscribers (000) | 7,473 | 6,750 | 10.7 | % | ||||||||||||||||||||
Net Prepaid Subscriber Additions (000)2 | 92 | 137 | (32.8) | % | 217 | 222 | (2.3) | |||||||||||||||||
Reseller Subscribers (000) | 14,382 | 12,522 | 14.9 | % | ||||||||||||||||||||
Net Reseller Subscriber Additions (000)2 | 472 | 248 | 90.3 | % | 656 | �� 809 | (18.9) | |||||||||||||||||
Connected Device Subscribers (000)3 | 13,685 | 10,990 | 24.5 | % | ||||||||||||||||||||
Net Connected Device Subscriber Additions (000) | 382 | 379 | 0.8 | % | 612 | 1,655 | (63.0) |
1 | Represents 100% of AT&T Mobility customers. |
2 | |||||||||||
3 | |||||||||||||
remainder in postpaid. |
4 | Calculated by dividing the aggregate number of wireless subscribers who canceled service during a period divided by the total number of wireless subscribers at the beginning of that period. The churn rate for the period is equal to the average of the churn rate for each month of that period. |
· | Data service revenues increased |
· | Voice and other service revenues decreased |
· | Equipment costs |
· |
· | Commission expenses |
· | USF and reseller fees increased |
· |
Commission expenses increased |
· | Selling expenses (other than commissions) and administrative expenses increased |
· | Network system, interconnect, and long-distance costs increased $214 due to higher network traffic, personnel-related network support costs in conjunction with our network enhancement efforts, and higher leasing costs. |
· | USF and reseller fees increased |
· | Equipment costs increased $73 reflecting sales of the more expensive smartphones, partially offset by the overall decline in upgrade activity and total device sales. |
Wireline | ||||||||||||||||||||||||||||||||||||||||||||||||
Segment Results | ||||||||||||||||||||||||||||||||||||||||||||||||
Third Quarter | Nine-Month Period | |||||||||||||||||||||||||||||||||||||||||||||||
Second Quarter | Six-Month Period | 2012 | 2011 | Percent Change | 2012 | 2011 | Percent Change | |||||||||||||||||||||||||||||||||||||||||
2012 | 2011 | Percent Change | 2012 | 2011 | Percent Change | |||||||||||||||||||||||||||||||||||||||||||
Segment operating revenues | ||||||||||||||||||||||||||||||||||||||||||||||||
Data | $ | 7,923 | $ | 7,349 | 7.8 | % | $ | 15,718 | $ | 14,520 | 8.3 | % | $ | 7,977 | $ | 7,459 | 6.9 | % | $ | 23,695 | $ | 21,979 | 7.8 | % | ||||||||||||||||||||||||
Voice | 5,697 | 6,340 | (10.1 | ) | 11,590 | 12,890 | (10.1 | ) | 5,565 | 6,242 | (10.8 | ) | 17,155 | 19,132 | (10.3 | ) | ||||||||||||||||||||||||||||||||
Other | 1,284 | 1,341 | (4.3 | ) | 2,524 | 2,671 | (5.5 | ) | 1,271 | 1,354 | (6.1 | ) | 3,795 | 4,025 | (5.7 | ) | ||||||||||||||||||||||||||||||||
Total Segment Operating Revenues | 14,904 | 15,030 | (0.8 | ) | 29,832 | 30,081 | (0.8 | ) | 14,813 | 15,055 | (1.6 | ) | 44,645 | 45,136 | (1.1 | ) | ||||||||||||||||||||||||||||||||
Segment operating expenses | ||||||||||||||||||||||||||||||||||||||||||||||||
Operations and support | 10,085 | 10,145 | (0.6 | ) | 20,382 | 20,457 | (0.4 | ) | 10,134 | 10,295 | (1.6 | ) | 30,516 | 30,752 | (0.8 | ) | ||||||||||||||||||||||||||||||||
Depreciation and amortization | 2,766 | 2,876 | (3.8 | ) | 5,574 | 5,834 | (4.5 | ) | 2,774 | 2,892 | (4.1 | ) | 8,348 | 8,726 | (4.3 | ) | ||||||||||||||||||||||||||||||||
Total Segment Operating Expenses | 12,851 | 13,021 | (1.3 | ) | 25,956 | 26,291 | (1.3 | ) | 12,908 | 13,187 | (2.1 | ) | 38,864 | 39,478 | (1.6 | ) | ||||||||||||||||||||||||||||||||
Segment Operating Income | 2,053 | 2,009 | 2.2 | 3,876 | 3,790 | 2.3 | 1,905 | 1,868 | 2.0 | 5,781 | 5,658 | 2.2 | ||||||||||||||||||||||||||||||||||||
Equity in Net Income (Loss) of Affiliates | Equity in Net Income (Loss) of Affiliates | (1 | ) | - | - | (1 | ) | - | - | - | - | - | (1) | - | - | |||||||||||||||||||||||||||||||||
Segment Income | $ | 2,052 | $ | 2,009 | 2.1 | % | $ | 3,875 | $ | 3,790 | 2.2 | % | $ | 1,905 | $ | 1,868 | 2.0 | % | $ | 5,780 | $ | 5,658 | 2.2 | % |
· | Strategic business services, which include Ethernet, Virtual Private Networks (VPN), Hosting, IP Conferencing and application services, increased |
· | IP data revenues (excluding strategic services) increased |
· | Traditional data revenues, which include transport (excluding Ethernet) and packet-switched data services, decreased |
· | Local voice revenues decreased |
· | Long-distance revenues decreased |
June 30, | June 30, | Percent | September 30, | September 30, | Percent | |||||||||||||||||||
(in 000s) | 2012 | 2011 | Change | 2012 | 2011 | Change | ||||||||||||||||||
Switched Access Lines | ||||||||||||||||||||||||
Retail Consumer | 17,301 | 20,712 | (16.5) | % | 16,489 | 19,799 | (16.7 | )% | ||||||||||||||||
Retail Business1 | 14,988 | 16,333 | (8.2) | 14,619 | 15,989 | (8.6 | ) | |||||||||||||||||
Retail Subtotal1 | 32,289 | 37,045 | (12.8) | 31,108 | 35,788 | (13.1 | ) | |||||||||||||||||
Wholesale Subtotal1 | 1,945 | 2,176 | (10.6) | 1,930 | 2,118 | (8.9 | ) | |||||||||||||||||
Total Switched Access Lines2 | 34,274 | 39,275 | (12.7) | % | 33,088 | 37,956 | (12.8 | )% | ||||||||||||||||
Total Retail Consumer Voice Connections3 | 19,868 | 22,735 | (12.6) | % | 19,222 | 21,941 | (12.4 | )% | ||||||||||||||||
Total Wireline Broadband Connections4,5 | 16,434 | 16,473 | (0.2) | % | 16,392 | 16,476 | (0.5 | )% | ||||||||||||||||
Satellite service6 | 1,684 | 1,852 | (9.1) | % | 1,633 | 1,809 | (9.7 | )% | ||||||||||||||||
U-verse video | 4,146 | 3,407 | 21.7 | 4,344 | 3,583 | 21.2 | ||||||||||||||||||
Video Connections | 5,830 | 5,259 | 10.9 | % | 5,977 | 5,392 | 10.8 | % |
1 | Prior-period amounts restated to conform to current-period reporting methodology. |
2 | Total switched access lines includes payphone access lines of |
3 | Includes consumer U-verse VoIP connections of |
4 | Total wireline broadband connections include DSL, U-verse High Speed Internet and satellite broadband. |
5 | Includes U-verse High Speed Internet connections of 7,107 at September 30, 2012 and 4,636 at September 30, 2011. |
6 | Satellite service includes connections under our agency and resale agreements. |
Advertising Solutions | ||||||||||||||||||||||||
Segment Results | ||||||||||||||||||||||||
Third Quarter | Nine-Month Period | |||||||||||||||||||||||
2012 | 2011 | Percent Change | 2012 | 2011 | Percent Change | |||||||||||||||||||
Total Segment Operating Revenues | $ | - | $ | 803 | - | $ | 1,049 | $ | 2,512 | (58.2 | )% | |||||||||||||
Segment operating expenses | ||||||||||||||||||||||||
Operations and support | - | 554 | - | 773 | 1,707 | (54.7 | ) | |||||||||||||||||
Depreciation and amortization | - | 94 | - | 106 | 301 | (64.8 | ) | |||||||||||||||||
Total Segment Operating Expenses | - | 648 | - | 879 | 2,008 | (56.2 | ) | |||||||||||||||||
Segment Income | $ | - | $ | 155 | - | $ | 170 | $ | 504 | (66.3 | )% |
Advertising Solutions | ||||||||||||||||||||||||
Segment Results | ||||||||||||||||||||||||
Second Quarter | Six-Month Period | |||||||||||||||||||||||
2012 | 2011 | Percent Change | 2012 | 2011 | Percent Change | |||||||||||||||||||
Total Segment Operating Revenues | $ | 305 | $ | 841 | (63.7) | % | $ | 1,049 | $ | 1,709 | (38.6) | % | ||||||||||||
Segment operating expenses | ||||||||||||||||||||||||
Operations and support | 226 | 581 | (61.1) | 773 | 1,153 | (33.0) | ||||||||||||||||||
Depreciation and amortization | 29 | 101 | (71.3) | 106 | 207 | (48.8) | ||||||||||||||||||
Total Segment Operating Expenses | 255 | 682 | (62.6) | 879 | 1,360 | (35.4) | ||||||||||||||||||
Segment Income | $ | 50 | $ | 159 | (68.6) | % | $ | 170 | $ | 349 | (51.3) | % |
Other | ||||||||||||||||||||||||||||||||||||||||||||||||
Segment Results | ||||||||||||||||||||||||||||||||||||||||||||||||
Second Quarter | Six-Month Period | Third Quarter | Nine-Month Period | |||||||||||||||||||||||||||||||||||||||||||||
2012 | 2011 | Percent Change | 2012 | 2011 | Percent Change | 2012 | 2011 | Percent Change | 2012 | 2011 | Percent Change | |||||||||||||||||||||||||||||||||||||
Total Segment Operating Revenues | $ | 13 | $ | 21 | (38.1) | % | $ | 27 | $ | 39 | (30.8) | % | $ | 14 | $ | 14 | - | % | $ | 41 | $ | 53 | (22.6 | )% | ||||||||||||||||||||||||
Total Segment Operating Expenses | 251 | 226 | 11.1 | 494 | 350 | 41.1 | 235 | 412 | (43.0 | ) | 729 | 762 | (4.3 | ) | ||||||||||||||||||||||||||||||||||
Segment Operating Loss | (238) | (205) | (16.1) | (467) | (311) | (50.2) | (221) | (398) | 44.5 | (688) | (709) | 3.0 | ||||||||||||||||||||||||||||||||||||
Equity in Net Income of Affiliates | 148 | 214 | (30.8) | 384 | 467 | (17.8) | 199 | 201 | (1.0 | ) | 583 | 668 | (12.7 | ) | ||||||||||||||||||||||||||||||||||
Segment Income (Loss) | $ | (90) | $ | 9 | - | $ | (83) | $ | 156 | - | $ | (22) | $ | (197) | 88.8 | % | $ | (105) | $ | (41) | - |
Second Quarter | Six-Month Period | Third Quarter | Nine-Month Period | |||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | |||||||||||||||||||||
América Móvil | $ | 127 | $ | 191 | $ | 364 | $ | 418 | América Móvil | $ | 126 | $ | 176 | $ | 490 | $ | 594 | |||||||||||
YP Holdings | 19 | - | 19 | - | YP Holdings | 75 | - | 94 | - | |||||||||||||||||||
Telmex1 | - | 24 | - | 49 | Telmex1 | - | 26 | - | 75 | |||||||||||||||||||
Other | 2 | (1 | ) | 1 | - | Other | (2) | (1) | (1) | (1) | ||||||||||||||||||
Other Segment Equity in Net Income of Affiliates | $ | 148 | $ | 214 | $ | 384 | $ | 467 | Other Segment Equity in Net Income of Affiliates | $ | 199 | $ | 201 | $ | 583 | $ | 668 | |||||||||||
1 Acquired by América Móvil in late 2011. |
1 | Acquired by América Móvil in late 2011. |
· |
· |
· |
· |
· |
· | $800 of 4.75% notes due November 2012, $2,500 of 4.95% notes due January 2013, and $1,500 of 6.7% notes due November |
· | $1,000 of 4.85% notes due February 2014 redeemed in September 2012. |
· | $1,000 of annual put reset securities issued by BellSouth Corporation (BellSouth) that may be put back to us each April until maturity in 2021. |
· | An accreting zero-coupon note that may be redeemed each May until maturity in 2022. If the zero-coupon note (issued for principal of $500 in 2007) is held to maturity, the redemption amount will be $1,030. |
· | Adverse economic and/or capital access changes in the markets served by us or in countries in which we have significant investments, including the impact on customer demand and our ability and our suppliers’ ability to access financial markets at favorable rates. |
· | Changes in available technology and the effects of such changes, including product substitutions and deployment costs. |
· | Increases in our benefit plans’ costs, including increases due to adverse changes in the U.S. and foreign securities markets, resulting in worse-than-assumed investment returns and discount rates and adverse medical cost trends and unfavorable healthcare legislation, regulations or related court decisions. |
· | The final outcome of FCC and other federal agency proceedings and reopenings of such proceedings and judicial reviews, if any, of such proceedings, including issues relating to access charges, intercarrier compensation, universal service, broadband deployment, E911 services, competition, net neutrality, unbundled loop and transport elements, availability of new spectrum from the FCC on fair and balanced terms, wireless license awards and renewals and wireless services, including data roaming agreements and spectrum allocation. |
· | The final outcome of regulatory proceedings in the states in which we operate and reopenings of such proceedings and judicial reviews, if any, of such proceedings, including proceedings relating to Interconnection terms, access charges, universal service, unbundled network elements and resale and wholesale rates; broadband deployment including our U-verse services; net neutrality; performance measurement plans; service standards; and intercarrier and other traffic compensation. |
· | Enactment of additional state, federal and/or foreign regulatory and tax laws and regulations pertaining to our subsidiaries and foreign investments, including laws and regulations that reduce our incentive to invest in our networks, resulting in lower revenue growth and/or higher operating costs. |
· | Our ability to absorb revenue losses caused by increasing competition, including offerings that use alternative technologies (e.g., cable, wireless and VoIP) and our ability to maintain capital expenditures. |
· | The extent of competition and the resulting pressure on customer and access line totals and wireline and wireless operating margins. |
· | Our ability to develop attractive and profitable product/service offerings to offset increasing competition in our wireless and wireline markets. |
· | The ability of our competitors to offer product/service offerings at lower prices due to lower cost structures and regulatory and legislative actions adverse to us, including state regulatory proceedings relating to unbundled network elements and nonregulation of comparable alternative technologies (e.g., VoIP). |
· | The development of attractive and profitable U-verse service offerings; the extent to which regulatory, franchise fees and build-out requirements apply to this initiative; and the availability, cost and/or reliability of the various technologies and/or content required to provide such offerings. |
· | Our continued ability to attract and offer a diverse portfolio of wireless devices, some on an exclusive basis. |
· | The availability and cost of additional wireless spectrum and regulations and conditions relating to spectrum use, licensing, obtaining additional spectrum, technical standards and deployment and usage, including network management rules. |
· | Our ability to manage growth in wireless data services, including network quality and acquisition of adequate spectrum at reasonable costs and terms. |
· | The outcome of pending, threatened or potential litigation, including patent and product safety claims by or against third parties. |
· | The impact on our networks and business from major equipment failures; security breaches related to the network or customer information; our inability to obtain handsets, equipment/software or have handsets, equipment/software serviced in a timely and cost-effective manner from suppliers; or severe weather conditions, natural disasters, pandemics, energy shortages, wars or terrorist attacks. |
· | The issuance by the Financial Accounting Standards Board or other accounting oversight bodies of new accounting standards or changes to existing standards. |
· | The issuance by the Internal Revenue Service and/or state tax authorities of new tax regulations or changes to existing standards and actions by federal, state or local tax agencies and judicial authorities with respect to applying applicable tax laws and regulations and the resolution of disputes with any taxing jurisdictions. |
· | Our ability to adequately fund our wireless operations, including payment for additional spectrum network upgrades and technological advancements. |
· | Changes in our corporate strategies, such as changing network requirements or acquisitions and dispositions, which may require significant amounts of cash or stock, to respond to competition and regulatory, legislative and technological developments. |
· | The uncertainty surrounding the January 2013 implementation of the Budget Control Act of 2011, and associated spending reductions; the expiration of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010; and the uncertainty as to whether the United States will reach the debt ceiling prior to year-end may result in a significant reduction in government spending and reluctance of businesses and consumers to spend in general and on our products and services specifically, due to this fiscal uncertainty. |
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | |||||||
(c) A summary of our repurchases of common stock during the second quarter of 2012 is as follows: | |||||||
Period | (a) Total Number of Shares (or Units) Purchased | (b) Average Price Paid Per Share (or Unit) | (c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs1 | (d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) That May Yet Be Purchased Under The Plans or Programs2 | |||
April 1, 2012 - April 30, 2012 | 12,602,394 | $ | 33.01 | 12,602,394 | 219,697,606 | ||
May 1, 2012 - May 31, 2012 | 27,719,296 | 33.35 | 27,719,296 | 191,978,310 | |||
June 1, 2012 - June 30, 2012 | 35,444,259 | 34.33 | 35,444,259 | 156,534,051 | |||
Total | 75,765,949 | $ | 33.75 | 75,765,949 | |||
1 In December 2010, we announced our stock repurchase plan, under which our Board of Directors authorized the repurchase of up to 300 million shares of our common stock. The plan has no expiration date. | |||||||
2 In July 2012, the Board authorized the repurchase of an additional 300 million shares. The plan has no expiration date. |
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | |||||||||
(c) A summary of our repurchases of common stock during the third quarter of 2012 is as follows: | |||||||||
Period | (a) Total Number of Shares (or Units) Purchased | (b) Average Price Paid Per Share (or Unit) | (c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs1 | (d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) That May Yet Be Purchased Under The Plans or Programs2 | |||||
July 1, 2012 - July 31, 2012 | 37,206,416 | $ | 36.81 | 37,206,416 | 419,327,635 | ||||
August 1, 2012 - August 31, 2012 | 22,242,480 | 37.00 | 22,242,480 | 397,085,155 | |||||
September 1, 2012 - September 30, 2012 | 41,601,200 | 37.45 | 41,601,200 | 355,483,955 | |||||
Total | 101,050,096 | $ | 37.12 | 101,050,096 | |||||
1 In December 2010, we announced our stock repurchase plan, under which our Board of Directors authorized the repurchase of up to 300 million shares of our common stock. The plan has no expiration date. | |||||||||
2 In July 2012, the Board authorized the repurchase of an additional 300 million shares. The plan has no expiration date. |
12 | Computation of Ratios of Earnings to Fixed Charges |
31 | Rule 13a-14(a)/15d-14(a) Certifications 31.1 Certification of Principal Executive Officer 31.2 Certification of Principal Financial Officer |
32 | Section 1350 Certifications |
101 | XBRL Instance Document |