(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 | [ ] |
Emerging growth 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 | Three months ended | Six months ended | ||||||||||||||||||||||
March 31, | June 30, | June 30, | ||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||
Operating Revenues | ||||||||||||||||||||||||
Service | $ | 36,456 | $ | 37,101 | $ | 36,538 | $ | 37,142 | $ | 72,994 | $ | 74,243 | ||||||||||||
Equipment | 2,909 | 3,434 | 3,299 | 3,378 | 6,208 | 6,812 | ||||||||||||||||||
Total operating revenues | 39,365 | 40,535 | 39,837 | 40,520 | 79,202 | 81,055 | ||||||||||||||||||
Operating Expenses | ||||||||||||||||||||||||
Cost of services and sales | ||||||||||||||||||||||||
Equipment | 3,848 | 4,375 | 4,138 | 4,260 | 7,986 | 8,635 | ||||||||||||||||||
Broadcast, programming and operations | 4,974 | 4,629 | 4,898 | 4,701 | 9,872 | �� | 9,330 | |||||||||||||||||
Other cost of services (exclusive of depreciation and amortization shown separately below) | 9,065 | 9,396 | 9,218 | 9,514 | 18,283 | 18,910 | ||||||||||||||||||
Selling, general and administrative | 8,487 | 8,441 | 8,113 | 8,909 | 16,600 | 17,350 | ||||||||||||||||||
Depreciation and amortization | 6,127 | 6,563 | 6,147 | 6,576 | 12,274 | 13,139 | ||||||||||||||||||
Total operating expenses | 32,501 | 33,404 | 32,514 | 33,960 | 65,015 | 67,364 | ||||||||||||||||||
Operating Income | 6,864 | 7,131 | 7,323 | 6,560 | 14,187 | 13,691 | ||||||||||||||||||
Other Income (Expense) | ||||||||||||||||||||||||
Interest expense | (1,293 | ) | (1,207 | ) | (1,395 | ) | (1,258 | ) | (2,688 | ) | (2,465 | ) | ||||||||||||
Equity in net income (loss) of affiliates | (173 | ) | 13 | 14 | 28 | (159 | ) | 41 | ||||||||||||||||
Other income (expense) – net | (20 | ) | 70 | 128 | 91 | 108 | 161 | |||||||||||||||||
Total other income (expense) | (1,486 | ) | (1,124 | ) | (1,253 | ) | (1,139 | ) | (2,739 | ) | (2,263 | ) | ||||||||||||
Income Before Income Taxes | 5,378 | 6,007 | 6,070 | 5,421 | 11,448 | 11,428 | ||||||||||||||||||
Income tax expense | 1,804 | 2,122 | 2,056 | 1,906 | 3,860 | 4,028 | ||||||||||||||||||
Net Income | 3,574 | 3,885 | 4,014 | 3,515 | 7,588 | 7,400 | ||||||||||||||||||
Less: Net Income Attributable to Noncontrolling Interest | (105 | ) | (82 | ) | (99 | ) | (107 | ) | (204 | ) | (189 | ) | ||||||||||||
Net Income Attributable to AT&T | $ | 3,469 | $ | 3,803 | $ | 3,915 | $ | 3,408 | $ | 7,384 | $ | 7,211 | ||||||||||||
Basic Earnings Per Share Attributable to AT&T | $ | 0.56 | $ | 0.62 | $ | 0.63 | $ | 0.55 | $ | 1.19 | $ | 1.17 | ||||||||||||
Diluted Earnings Per Share Attributable to AT&T | $ | 0.56 | $ | 0.61 | $ | 0.63 | $ | 0.55 | $ | 1.19 | $ | 1.17 | ||||||||||||
Weighted Average Number of Common Shares Outstanding – Basic (in millions) | 6,166 | 6,172 | 6,165 | 6,174 | 6,166 | 6,173 | ||||||||||||||||||
Weighted Average Number of Common Shares Outstanding – with Dilution (in millions) | 6,186 | 6,190 | 6,184 | 6,195 | 6,185 | 6,193 | ||||||||||||||||||
Dividends Declared Per Common Share | $ | 0.49 | $ | 0.48 | $ | 0.49 | $ | 0.48 | $ | 0.98 | $ | 0.96 | ||||||||||||
See Notes to Consolidated Financial Statements. |
AT&T INC. | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
Dollars in millions except per share amounts | ||||||||
March 31, | December 31, | |||||||
2017 | 2016 | |||||||
Assets | (Unaudited) | |||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 14,884 | $ | 5,788 | ||||
Accounts receivable - net of allowances for doubtful accounts of $699 and $661 | 15,078 | 16,794 | ||||||
Prepaid expenses | 1,418 | 1,555 | ||||||
Other current assets | 14,347 | 14,232 | ||||||
Total current assets | 45,727 | 38,369 | ||||||
Property, plant and equipment | 319,108 | 319,648 | ||||||
Less: accumulated depreciation and amortization | (193,816 | ) | (194,749 | ) | ||||
Property, Plant and Equipment – Net | 125,292 | 124,899 | ||||||
Goodwill | 105,593 | 105,207 | ||||||
Licenses | 94,617 | 94,176 | ||||||
Customer Lists and Relationships – Net | 13,366 | 14,243 | ||||||
Other Intangible Assets – Net | 8,295 | 8,441 | ||||||
Investments in Equity Affiliates | 1,551 | 1,674 | ||||||
Other Assets | 17,462 | 16,812 | ||||||
Total Assets | $ | 411,903 | $ | 403,821 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current Liabilities | ||||||||
Debt maturing within one year | $ | 12,681 | $ | 9,832 | ||||
Accounts payable and accrued liabilities | 27,120 | 31,138 | ||||||
Advanced billing and customer deposits | 4,493 | 4,519 | ||||||
Accrued taxes | 3,384 | 2,079 | ||||||
Dividends payable | 3,012 | 3,008 | ||||||
Total current liabilities | 50,690 | 50,576 | ||||||
Long-Term Debt | 120,568 | 113,681 | ||||||
Deferred Credits and Other Noncurrent Liabilities | ||||||||
Deferred income taxes | 61,100 | 60,128 | ||||||
Postemployment benefit obligation | 33,404 | 33,578 | ||||||
Other noncurrent liabilities | 21,160 | 21,748 | ||||||
Total deferred credits and other noncurrent liabilities | 115,664 | 115,454 | ||||||
Stockholders' Equity | ||||||||
Common stock ($1 par value, 14,000,000,000 authorized at March 31, 2017 and | ||||||||
December 31, 2016: issued 6,495,231,088 at March 31, 2017 and December 31, 2016) | 6,495 | 6,495 | ||||||
Additional paid-in capital | 89,411 | 89,604 | ||||||
Retained earnings | 35,175 | 34,734 | ||||||
Treasury stock (347,741,277 at March 31, 2017 and 356,237,141 | ||||||||
at December 31, 2016, at cost) | (12,400 | ) | (12,659 | ) | ||||
Accumulated other comprehensive income | 5,160 | 4,961 | ||||||
Noncontrolling interest | 1,140 | 975 | ||||||
Total stockholders' equity | 124,981 | 124,110 | ||||||
Total Liabilities and Stockholders' Equity | $ | 411,903 | $ | 403,821 | ||||
See Notes to Consolidated Financial Statements. |
AT&T INC. | ||||||||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||||||
Dollars in millions | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three months ended | Six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Net income | $ | 4,014 | $ | 3,515 | $ | 7,588 | $ | 7,400 | ||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||
Foreign currency: | ||||||||||||||||
Foreign currency translation adjustment (includes $(10), $0, $(4) and $0 attributable to noncontrolling interest), net of taxes of $115, $136, $506 and $126 | (33 | ) | 218 | 339 | 174 | |||||||||||
Available-for-sale securities: | ||||||||||||||||
Net unrealized gains (losses), net of taxes of $29, $2, $44 and $(13) | 50 | 5 | 83 | (21 | ) | |||||||||||
Reclassification adjustment included in net income, net of taxes of $(7), $2, $(4) and $0 | (12 | ) | 3 | (7 | ) | - | ||||||||||
Cash flow hedges: | ||||||||||||||||
Net unrealized gains (losses), net of taxes of $(279), $(208), $(272) and $(141) | (517 | ) | (387 | ) | (504 | ) | (263 | ) | ||||||||
Reclassification adjustment included in net income, net of taxes of $5, $5, $10 and $10 | 9 | 9 | 19 | 19 | ||||||||||||
Defined benefit postretirement plans: | ||||||||||||||||
Net prior service credit arising during period, net of taxes of $594, $0, $594 and $0 | 969 | - | 969 | - | ||||||||||||
Amortization of net prior service credit included in net income, net of taxes of $(151), $(131), $(290) and $(262) | (247 | ) | (214 | ) | (475 | ) | (429 | ) | ||||||||
Other comprehensive income (loss) | 219 | (366 | ) | 424 | (520 | ) | ||||||||||
Total comprehensive income | 4,233 | 3,149 | 8,012 | 6,880 | ||||||||||||
Less: Total comprehensive income attributable to noncontrolling interest | (89 | ) | (107 | ) | (200 | ) | (189 | ) | ||||||||
Total Comprehensive Income Attributable to AT&T | $ | 4,144 | $ | 3,042 | $ | 7,812 | $ | 6,691 | ||||||||
See Notes to Consolidated Financial Statements. |
AT&T INC. | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
Dollars in millions | ||||||||
(Unaudited) | ||||||||
Three months ended | ||||||||
March 31, | ||||||||
2017 | 2016 | |||||||
Operating Activities | ||||||||
Net income | $ | 3,574 | $ | 3,885 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 6,127 | 6,563 | ||||||
Undistributed loss (earnings) from investments in equity affiliates | 182 | (13 | ) | |||||
Provision for uncollectible accounts | 393 | 374 | ||||||
Deferred income tax expense | 480 | 1,346 | ||||||
Net loss (gain) from sale of investments, net of impairments | 61 | (44 | ) | |||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 445 | 43 | ||||||
Other current assets | 228 | 1,319 | ||||||
Accounts payable and other accrued liabilities | (1,778 | ) | (3,990 | ) | ||||
Equipment installment receivables and related sales | 579 | 454 | ||||||
Deferred fulfillment costs | (436 | ) | (542 | ) | ||||
Retirement benefit funding | (140 | ) | (140 | ) | ||||
Other - net | (497 | ) | (1,355 | ) | ||||
Total adjustments | 5,644 | 4,015 | ||||||
Net Cash Provided by Operating Activities | 9,218 | 7,900 | ||||||
Investing Activities | ||||||||
Capital expenditures: | ||||||||
Purchase of property and equipment | (5,784 | ) | (4,451 | ) | ||||
Interest during construction | (231 | ) | (218 | ) | ||||
Acquisitions, net of cash acquired | (162 | ) | (165 | ) | ||||
Dispositions | 6 | 81 | ||||||
Sale of securities, net | - | 445 | ||||||
Net Cash Used in Investing Activities | (6,171 | ) | (4,308 | ) | ||||
Financing Activities | ||||||||
Net change in short-term borrowings with original maturities of three months or less | (1 | ) | - | |||||
Issuance of long-term debt | 12,440 | 5,978 | ||||||
Repayment of long-term debt | (3,053 | ) | (2,296 | ) | ||||
Purchase of treasury stock | (177 | ) | - | |||||
Issuance of treasury stock | 21 | 89 | ||||||
Dividends paid | (3,009 | ) | (2,947 | ) | ||||
Other | (172 | ) | 471 | |||||
Net Cash Provided by Financing Activities | 6,049 | 1,295 | ||||||
Net increase in cash and cash equivalents | 9,096 | 4,887 | ||||||
Cash and cash equivalents beginning of year | 5,788 | 5,121 | ||||||
Cash and Cash Equivalents End of Period | $ | 14,884 | $ | 10,008 | ||||
Cash paid (received) during the three months ended March 31 for: | ||||||||
Interest | $ | 1,643 | $ | 1,459 | ||||
Income taxes, net of refunds | $ | (160 | ) | $ | 477 | |||
See Notes to Consolidated Financial Statements. |
AT&T INC. | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
Dollars in millions except per share amounts | ||||||||
June 30, | December 31, | |||||||
2017 | 2016 | |||||||
Assets | (Unaudited) | |||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 25,617 | $ | 5,788 | ||||
Accounts receivable - net of allowances for doubtful accounts of $732 and $661 | 14,997 | 16,794 | ||||||
Prepaid expenses | 1,371 | 1,555 | ||||||
Other current assets | 11,562 | 14,232 | ||||||
Total current assets | 53,547 | 38,369 | ||||||
Property, plant and equipment | 323,098 | 319,648 | ||||||
Less: accumulated depreciation and amortization | (196,914 | ) | (194,749 | ) | ||||
Property, Plant and Equipment – Net | 126,184 | 124,899 | ||||||
Goodwill | 105,546 | 105,207 | ||||||
Licenses | 95,864 | 94,176 | ||||||
Customer Lists and Relationships – Net | 12,414 | 14,243 | ||||||
Other Intangible Assets – Net | 7,980 | 8,441 | ||||||
Investments in Equity Affiliates | 1,615 | 1,674 | ||||||
Other Assets | 17,645 | 16,812 | ||||||
Total Assets | $ | 420,795 | $ | 403,821 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current Liabilities | ||||||||
Debt maturing within one year | $ | 10,831 | $ | 9,832 | ||||
Accounts payable and accrued liabilities | 26,471 | 31,138 | ||||||
Advanced billing and customer deposits | 4,371 | 4,519 | ||||||
Accrued taxes | 3,331 | 2,079 | ||||||
Dividends payable | 3,008 | 3,008 | ||||||
Total current liabilities | 48,012 | 50,576 | ||||||
Long-Term Debt | 132,824 | 113,681 | ||||||
Deferred Credits and Other Noncurrent Liabilities | ||||||||
Deferred income taxes | 61,926 | 60,128 | ||||||
Postemployment benefit obligation | 31,422 | 33,578 | ||||||
Other noncurrent liabilities | 20,753 | 21,748 | ||||||
Total deferred credits and other noncurrent liabilities | 114,101 | 115,454 | ||||||
Stockholders' Equity | ||||||||
Common stock ($1 par value, 14,000,000,000 authorized at June 30, 2017 and | ||||||||
December 31, 2016: issued 6,495,231,088 at June 30, 2017 and December 31, 2016) | 6,495 | 6,495 | ||||||
Additional paid-in capital | 89,471 | 89,604 | �� | |||||
Retained earnings | 36,067 | 34,734 | ||||||
Treasury stock (355,448,811 at June 30, 2017 and 356,237,141 | ||||||||
at December 31, 2016, at cost) | (12,697 | ) | (12,659 | ) | ||||
Accumulated other comprehensive income | 5,389 | 4,961 | ||||||
Noncontrolling interest | 1,133 | 975 | ||||||
Total stockholders' equity | 125,858 | 124,110 | ||||||
Total Liabilities and Stockholders' Equity | $ | 420,795 | $ | 403,821 | ||||
See Notes to Consolidated Financial Statements. |
AT&T INC. | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
Dollars in millions | ||||||||
(Unaudited) | ||||||||
Six months ended | ||||||||
June 30, | ||||||||
2017 | 2016 | |||||||
Operating Activities | ||||||||
Net income | $ | 7,588 | $ | 7,400 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 12,274 | 13,139 | ||||||
Undistributed loss (earnings) from investments in equity affiliates | 167 | (22 | ) | |||||
Provision for uncollectible accounts | 795 | 705 | ||||||
Deferred income tax expense | 964 | 1,767 | ||||||
Net loss (gain) from sale of investments, net of impairments | 12 | (85 | ) | |||||
Actuarial loss (gain) on pension and postretirement benefits | (259 | ) | - | |||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 119 | (364 | ) | |||||
Other current assets | 471 | 2,229 | ||||||
Accounts payable and other accrued liabilities | (2,761 | ) | (3,032 | ) | ||||
Equipment installment receivables and related sales | 907 | 464 | ||||||
Deferred fulfillment costs | (796 | ) | (1,190 | ) | ||||
Retirement benefit funding | (280 | ) | (280 | ) | ||||
Other - net | (1,041 | ) | (2,524 | ) | ||||
Total adjustments | 10,572 | 10,807 | ||||||
Net Cash Provided by Operating Activities | 18,160 | 18,207 | ||||||
Investing Activities | ||||||||
Capital expenditures: | ||||||||
Purchase of property and equipment | (10,750 | ) | (9,702 | ) | ||||
Interest during construction | (473 | ) | (437 | ) | ||||
Acquisitions, net of cash acquired | 1,224 | (485 | ) | |||||
Dispositions | 51 | 107 | ||||||
Sale of securities, net | - | 500 | ||||||
Net Cash Used in Investing Activities | (9,948 | ) | (10,017 | ) | ||||
Financing Activities | ||||||||
Net change in short-term borrowings with original maturities of three months or less | (2 | ) | - | |||||
Issuance of long-term debt | 24,115 | 10,140 | ||||||
Repayment of long-term debt | (6,118 | ) | (9,129 | ) | ||||
Purchase of treasury stock | (458 | ) | (197 | ) | ||||
Issuance of treasury stock | 24 | 119 | ||||||
Dividends paid | (6,021 | ) | (5,899 | ) | ||||
Other | 77 | (1,137 | ) | |||||
Net Cash Provided by (Used in) Financing Activities | 11,617 | (6,103 | ) | |||||
Net increase in cash and cash equivalents | 19,829 | 2,087 | ||||||
Cash and cash equivalents beginning of year | 5,788 | 5,121 | ||||||
Cash and Cash Equivalents End of Period | $ | 25,617 | $ | 7,208 | ||||
Cash paid during the six months ended June 30 for: | ||||||||
Interest | $ | 3,095 | $ | 2,914 | ||||
Income taxes, net of refunds | $ | 1,470 | $ | 2,468 | ||||
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) | ||||||||||||||
March 31, 2017 | June 30, 2017 | |||||||||||||||
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 | $ | 89,604 | $ | 89,604 | ||||||||||||
Issuance of treasury stock | 4 | 4 | ||||||||||||||
Share-based payments | (197 | ) | (137 | ) | ||||||||||||
Balance at end of period | $ | 89,411 | $ | 89,471 | ||||||||||||
Retained Earnings | ||||||||||||||||
Balance at beginning of year | $ | 34,734 | $ | 34,734 | ||||||||||||
Net income attributable to AT&T ($0.56 per diluted share) | 3,469 | |||||||||||||||
Dividends to stockholders ($0.49 per share) | (3,030 | ) | ||||||||||||||
Net income attributable to AT&T ($1.19 per diluted share) | 7,384 | |||||||||||||||
Dividends to stockholders ($0.98 per share) | (6,053 | ) | ||||||||||||||
Other | 2 | 2 | ||||||||||||||
Balance at end of period | $ | 35,175 | $ | 36,067 | ||||||||||||
Treasury Stock | ||||||||||||||||
Balance at beginning of year | (356 | ) | $ | (12,659 | ) | (356 | ) | $ | (12,659 | ) | ||||||
Repurchase and acquisition of common stock | (5 | ) | (200 | ) | (13 | ) | (504 | ) | ||||||||
Issuance of treasury stock | 13 | 459 | 14 | 466 | ||||||||||||
Balance at end of period | (348 | ) | $ | (12,400 | ) | (355 | ) | $ | (12,697 | ) | ||||||
Accumulated Other Comprehensive Income Attributable to AT&T, net of tax | ||||||||||||||||
Balance at beginning of year | $ | 4,961 | $ | 4,961 | ||||||||||||
Other comprehensive income attributable to AT&T | 199 | 428 | ||||||||||||||
Balance at end of period | $ | 5,160 | $ | 5,389 | ||||||||||||
Noncontrolling Interest | ||||||||||||||||
Balance at beginning of year | $ | 975 | $ | 975 | ||||||||||||
Net income attributable to noncontrolling interest | 105 | 204 | ||||||||||||||
Distributions | (77 | ) | (174 | ) | ||||||||||||
Acquisition of noncontrolling interest | 131 | 132 | ||||||||||||||
Translation adjustments attributable to noncontrolling interest, net of taxes | 6 | (4 | ) | |||||||||||||
Balance at end of period | $ | 1,140 | $ | 1,133 | ||||||||||||
Total Stockholders' Equity at beginning of year | $ | 124,110 | $ | 124,110 | ||||||||||||
Total Stockholders' Equity at end of period | $ | 124,981 | $ | 125,858 | ||||||||||||
See Notes to Consolidated Financial Statements. |
Three months ended | Three months ended | Six months ended | ||||||||||||||||||||||
March 31, | June 30, | June 30, | ||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||
Numerators | ||||||||||||||||||||||||
Numerator for basic earnings per share: | ||||||||||||||||||||||||
Net Income | $ | 3,574 | $ | 3,885 | $ | 4,014 | $ | 3,515 | $ | 7,588 | $ | 7,400 | ||||||||||||
Less: Net income attributable to noncontrolling interest | (105 | ) | (82 | ) | (99 | ) | (107 | ) | (204 | ) | (189 | ) | ||||||||||||
Net Income attributable to AT&T | 3,469 | 3,803 | 3,915 | 3,408 | 7,384 | 7,211 | ||||||||||||||||||
Dilutive potential common shares: | ||||||||||||||||||||||||
Share-based payment | 4 | 4 | 2 | 2 | 6 | 6 | ||||||||||||||||||
Numerator for diluted earnings per share | $ | 3,473 | $ | 3,807 | $ | 3,917 | $ | 3,410 | $ | 7,390 | $ | 7,217 | ||||||||||||
Denominators (000,000) | ||||||||||||||||||||||||
Denominator for basic earnings per share: | ||||||||||||||||||||||||
Weighted average number of common shares outstanding | 6,166 | 6,172 | 6,165 | 6,174 | 6,166 | 6,173 | ||||||||||||||||||
Dilutive potential common shares: | ||||||||||||||||||||||||
Share-based payment (in shares) | 20 | 18 | 19 | 21 | 19 | 20 | ||||||||||||||||||
Denominator for diluted earnings per share | 6,186 | 6,190 | 6,184 | 6,195 | 6,185 | 6,193 | ||||||||||||||||||
Basic earnings per share attributable to AT&T | $ | 0.56 | $ | 0.62 | $ | 0.63 | $ | 0.55 | $ | 1.19 | $ | 1.17 | ||||||||||||
Diluted earnings per share attributable to AT&T | $ | 0.56 | $ | 0.61 | $ | 0.63 | $ | 0.55 | $ | 1.19 | $ | 1.17 |
Foreign Currency Translation Adjustment | Net Unrealized Gains (Losses) on Available-for-Sale Securities | Net Unrealized Gains (Losses) on Cash Flow Hedges | Defined Benefit Postretirement Plans | Accumulated Other Comprehensive Income | |||||||||||
Balance as of December 31, 2016 | $ | (1,995) | $ | 541 | $ | 744 | $ | 5,671 | $ | 4,961 | |||||
Other comprehensive income (loss) before reclassifications | 343 | 83 | (504) | 969 | 891 | ||||||||||
Amounts reclassified from accumulated OCI | - | 1 | (7) | 1 | 19 | 2 | (475) | 3 | (463) | ||||||
Net other comprehensive income (loss) | 343 | 76 | (485) | 494 | 428 | ||||||||||
Balance as of June 30, 2017 | $ | (1,652) | $ | 617 | $ | 259 | $ | 6,165 | $ | 5,389 | |||||
Foreign Currency Translation Adjustment | Net Unrealized Gains (Losses) on Available-for-Sale Securities | Net Unrealized Gains (Losses) on Cash Flow Hedges | Defined Benefit Postretirement Plans | Accumulated Other Comprehensive Income | |||||||||||
Balance as of December 31, 2015 | $ | (1,198) | $ | 484 | $ | 16 | $ | 6,032 | $ | 5,334 | |||||
Other comprehensive income (loss) before reclassifications | 174 | (21) | (263) | - | (110) | ||||||||||
Amounts reclassified from accumulated OCI | - | 1 | - | 1 | 19 | 2 | (429) | 3 | (410) | ||||||
Net other comprehensive income (loss) | 174 | (21) | (244) | (429) | (520) | ||||||||||
Balance as of June 30, 2016 | $ | (1,024) | $ | 463 | $ | (228) | $ | 5,603 | $ | 4,814 | |||||
1 (Gains) losses are included in Other income (expense) - net in the consolidated statements of income. | |||||||||||||||
2 (Gains) losses are included in Interest expense in the consolidated statements of income. See Note 6 for additional information. | |||||||||||||||
3 The amortization of prior service credits associated with postretirement benefits, net of amounts capitalized as part of construction | |||||||||||||||
labor, are included in Cost of services and sales and Selling, general and administrative in the consolidated statements of income | |||||||||||||||
(see Note 5). |
Foreign Currency Translation Adjustment | Net Unrealized Gains (Losses) on Available-for-Sale Securities | Net Unrealized Gains (Losses) on Cash Flow Hedges | Defined Benefit Postretirement Plans | Accumulated Other Comprehensive Income | |||||||||||
Balance as of December 31, 2016 | $ | (1,995) | $ | 541 | $ | 744 | $ | 5,671 | $ | 4,961 | |||||
Other comprehensive income (loss) before reclassifications | 366 | 33 | 13 | - | 412 | ||||||||||
Amounts reclassified from accumulated OCI | - | 1 | 5 | 1 | 10 | 2 | (228) | 3 | (213) | ||||||
Net other comprehensive income (loss) | 366 | 38 | 23 | (228) | 199 | ||||||||||
Balance as of March 31, 2017 | $ | (1,629) | $ | 579 | $ | 767 | $ | 5,443 | $ | 5,160 | |||||
Foreign Currency Translation Adjustment | Net Unrealized Gains (Losses) on Available-for-Sale Securities | Net Unrealized Gains (Losses) on Cash Flow Hedges | Defined Benefit Postretirement Plans | Accumulated Other Comprehensive Income | |||||||||||
Balance as of December 31, 2015 | $ | (1,198) | $ | 484 | $ | 16 | $ | 6,032 | $ | 5,334 | |||||
Other comprehensive income (loss) before reclassifications | (44) | (26) | 124 | - | 54 | ||||||||||
Amounts reclassified from accumulated OCI | - | 1 | (3) | 1 | 10 | 2 | (215) | 3 | (208) | ||||||
Net other comprehensive income (loss) | (44) | (29) | 134 | (215) | (154) | ||||||||||
Balance as of March 31, 2016 | $ | (1,242) | $ | 455 | $ | 150 | $ | 5,817 | $ | 5,180 | |||||
1 | (Gains) losses are included in Other income (expense) - net in the consolidated statements of income. | ||||||||||||||
2 | (Gains) losses are included in Interest expense in the consolidated statements of income. See Note 6 for additional information. | ||||||||||||||
3 | The amortization of prior service credits associated with postretirement benefits, net of amounts capitalized as part of construction | ||||||||||||||
labor, are included in Cost of services and sales and Selling, general and administrative in the consolidated statements of income | |||||||||||||||
(see Note 5). |
· | Acquisition-related items which consists of (1) items associated with the merger and integration of acquired businesses and (2) the noncash amortization of intangible assets acquired in acquisitions. |
· | Certain significant items which consists of (1) noncash actuarial gains and losses from pension and other postretirement benefits, (2) employee separation charges associated with voluntary and/or strategic offers, (3) losses resulting from abandonment or impairment of assets and (4) other items for which the segments are not being evaluated. |
For the three months ended March 31, 2017 | ||||||||||||||||||||||||||||
Revenues | Operations and Support Expenses | EBITDA | Depreciation and Amortization | Operating Income (Loss) | Equity in Net Income (Loss) of Affiliates | Segment Contribution | ||||||||||||||||||||||
Business Solutions | $ | 16,848 | $ | 10,176 | $ | 6,672 | $ | 2,312 | $ | 4,360 | $ | - | $ | 4,360 | ||||||||||||||
Entertainment Group | 12,623 | 9,601 | 3,022 | 1,419 | 1,603 | (6 | ) | 1,597 | ||||||||||||||||||||
Consumer Mobility | 7,740 | 4,528 | 3,212 | 873 | 2,339 | - | 2,339 | |||||||||||||||||||||
International | 1,929 | 1,759 | 170 | 290 | (120 | ) | 20 | (100 | ) | |||||||||||||||||||
Segment Total | 39,140 | 26,064 | 13,076 | 4,894 | 8,182 | $ | 14 | $ | 8,196 | |||||||||||||||||||
Corporate and Other | 225 | 221 | 4 | 31 | (27 | ) | ||||||||||||||||||||||
Acquisition-related items | - | 207 | (207 | ) | 1,202 | (1,409 | ) | |||||||||||||||||||||
Certain significant items | - | (118 | ) | 118 | - | 118 | ||||||||||||||||||||||
AT&T Inc. | $ | 39,365 | $ | 26,374 | $ | 12,991 | $ | 6,127 | $ | 6,864 |
For the three months ended March 31, 2016 | ||||||||||||||||||||||||||||
Revenues | Operations and Support Expenses | EBITDA | Depreciation and Amortization | Operating Income (Loss) | Equity in Net Income (Loss) of Affiliates | Segment Contribution | ||||||||||||||||||||||
Business Solutions | $ | 17,609 | $ | 10,802 | $ | 6,807 | $ | 2,508 | $ | 4,299 | $ | - | $ | 4,299 | ||||||||||||||
Entertainment Group | 12,658 | 9,578 | 3,080 | 1,488 | 1,592 | 3 | 1,595 | |||||||||||||||||||||
Consumer Mobility | 8,328 | 4,912 | 3,416 | 922 | 2,494 | - | 2,494 | |||||||||||||||||||||
International | 1,667 | 1,588 | 79 | 277 | (198 | ) | 14 | (184 | ) | |||||||||||||||||||
Segment Total | 40,262 | 26,880 | 13,382 | 5,195 | 8,187 | $ | 17 | $ | 8,204 | |||||||||||||||||||
Corporate and Other | 273 | 377 | (104 | ) | 17 | (121 | ) | |||||||||||||||||||||
Acquisition-related items | - | 295 | (295 | ) | 1,351 | (1,646 | ) | |||||||||||||||||||||
Certain significant items | - | (711 | ) | 711 | - | 711 | ||||||||||||||||||||||
AT&T Inc. | $ | 40,535 | $ | 26,841 | $ | 13,694 | $ | 6,563 | $ | 7,131 |
For the three months ended June 30, 2017 | ||||||||||||||||||||||||||||
Revenues | Operations and Support Expenses | EBITDA | Depreciation and Amortization | Operating Income (Loss) | Equity in Net Income (Loss) of Affiliates | Segment Contribution | ||||||||||||||||||||||
Business Solutions | $ | 17,107 | $ | 10,313 | $ | 6,794 | $ | 2,335 | $ | 4,459 | $ | - | $ | 4,459 | ||||||||||||||
Entertainment Group | 12,682 | 9,558 | 3,124 | 1,458 | 1,666 | (11 | ) | 1,655 | ||||||||||||||||||||
Consumer Mobility | 7,791 | 4,520 | 3,271 | 871 | 2,400 | - | 2,400 | |||||||||||||||||||||
International | 2,026 | 1,772 | 254 | 311 | (57 | ) | 25 | (32 | ) | |||||||||||||||||||
Segment Total | 39,606 | 26,163 | 13,443 | 4,975 | 8,468 | $ | 14 | $ | 8,482 | |||||||||||||||||||
Corporate and Other | 231 | 87 | 144 | 2 | 142 | |||||||||||||||||||||||
Acquisition-related items | - | 281 | (281 | ) | 1,170 | (1,451 | ) | |||||||||||||||||||||
Certain significant items | - | (164 | ) | 164 | - | 164 | ||||||||||||||||||||||
AT&T Inc. | $ | 39,837 | $ | 26,367 | $ | 13,470 | $ | 6,147 | $ | 7,323 | ||||||||||||||||||
For the six months ended June 30, 2017 | ||||||||||||||||||||||||||||
Revenues | Operations and Support Expenses | EBITDA | Depreciation and Amortization | Operating Income (Loss) | Equity in Net Income (Loss) of Affiliates | Segment Contribution | ||||||||||||||||||||||
Business Solutions | $ | 33,955 | $ | 20,489 | $ | 13,466 | $ | 4,647 | $ | 8,819 | $ | - | $ | 8,819 | ||||||||||||||
Entertainment Group | 25,305 | 19,159 | 6,146 | 2,877 | 3,269 | (17 | ) | 3,252 | ||||||||||||||||||||
Consumer Mobility | 15,531 | 9,048 | 6,483 | 1,744 | 4,739 | - | 4,739 | |||||||||||||||||||||
International | 3,955 | 3,531 | 424 | 601 | (177 | ) | 45 | (132 | ) | |||||||||||||||||||
Segment Total | 78,746 | 52,227 | 26,519 | 9,869 | 16,650 | $ | 28 | $ | 16,678 | |||||||||||||||||||
Corporate and Other | 456 | 308 | 148 | 33 | 115 | |||||||||||||||||||||||
Acquisition-related items | - | 488 | (488 | ) | 2,372 | (2,860 | ) | |||||||||||||||||||||
Certain significant items | - | (282 | ) | 282 | - | 282 | ||||||||||||||||||||||
AT&T Inc. | $ | 79,202 | $ | 52,741 | $ | 26,461 | $ | 12,274 | $ | 14,187 |
For the three months ended June 30, 2016 | ||||||||||||||||||||||||||||
Revenues | Operations and Support Expenses | EBITDA | Depreciation and Amortization | Operating Income (Loss) | Equity in Net Income (Loss) of Affiliates | Segment Contribution | ||||||||||||||||||||||
Business Solutions | $ | 17,579 | $ | 10,857 | $ | 6,722 | $ | 2,521 | $ | 4,201 | $ | - | $ | 4,201 | ||||||||||||||
Entertainment Group | 12,711 | 9,569 | 3,142 | 1,489 | 1,653 | (2 | ) | 1,651 | ||||||||||||||||||||
Consumer Mobility | 8,186 | 4,680 | 3,506 | 932 | 2,574 | - | 2,574 | |||||||||||||||||||||
International | 1,828 | 1,723 | 105 | 298 | (193 | ) | 9 | (184 | ) | |||||||||||||||||||
Segment Total | 40,304 | 26,829 | 13,475 | 5,240 | 8,235 | $ | 7 | $ | 8,242 | |||||||||||||||||||
Corporate and Other | 216 | 293 | (77 | ) | 20 | (97 | ) | |||||||||||||||||||||
Acquisition-related items | - | 233 | (233 | ) | 1,316 | (1,549 | ) | |||||||||||||||||||||
Certain significant items | - | 29 | (29 | ) | - | (29 | ) | |||||||||||||||||||||
AT&T Inc. | $ | 40,520 | $ | 27,384 | $ | 13,136 | $ | 6,576 | $ | 6,560 | ||||||||||||||||||
�� | ||||||||||||||||||||||||||||
For the six months ended June 30, 2016 | ||||||||||||||||||||||||||||
Revenues | Operations and Support Expenses | EBITDA | Depreciation and Amortization | Operating Income (Loss) | Equity in Net Income (Loss) of Affiliates | Segment Contribution | ||||||||||||||||||||||
Business Solutions | $ | 35,188 | $ | 21,659 | $ | 13,529 | $ | 5,029 | $ | 8,500 | $ | - | $ | 8,500 | ||||||||||||||
Entertainment Group | 25,369 | 19,147 | 6,222 | 2,977 | 3,245 | 1 | 3,246 | |||||||||||||||||||||
Consumer Mobility | 16,514 | 9,592 | 6,922 | 1,854 | 5,068 | - | 5,068 | |||||||||||||||||||||
International | 3,495 | 3,311 | 184 | 575 | (391 | ) | 23 | (368 | ) | |||||||||||||||||||
Segment Total | 80,566 | 53,709 | 26,857 | 10,435 | 16,422 | $ | 24 | $ | 16,446 | |||||||||||||||||||
Corporate and Other | 489 | 670 | (181 | ) | 37 | (218 | ) | |||||||||||||||||||||
Acquisition-related items | - | 528 | (528 | ) | 2,667 | (3,195 | ) | |||||||||||||||||||||
Certain significant items | - | (682 | ) | 682 | - | 682 | ||||||||||||||||||||||
AT&T Inc. | $ | 81,055 | $ | 54,225 | $ | 26,830 | $ | 13,139 | $ | 13,691 |
The following table is a reconciliation of Segment Contribution to "Income Before Income Taxes" reported on our consolidated statements of income. | ||||||||||||||||
Second Quarter | Six Month Period | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Business Solutions | $ | 4,459 | $ | 4,201 | $ | 8,819 | $ | 8,500 | ||||||||
Entertainment Group | 1,655 | 1,651 | 3,252 | 3,246 | ||||||||||||
Consumer Mobility | 2,400 | 2,574 | 4,739 | 5,068 | ||||||||||||
International | (32 | ) | (184 | ) | (132 | ) | (368 | ) | ||||||||
Segment Contribution | 8,482 | 8,242 | 16,678 | 16,446 | ||||||||||||
Reconciling Items: | ||||||||||||||||
Corporate and Other | 142 | (97 | ) | 115 | (218 | ) | ||||||||||
Merger and integration charges | (281 | ) | (233 | ) | (488 | ) | (528 | ) | ||||||||
Amortization of intangibles acquired | (1,170 | ) | (1,316 | ) | (2,372 | ) | (2,667 | ) | ||||||||
Actuarial gain (loss) | 259 | - | 259 | - | ||||||||||||
Employee separation costs | (60 | ) | (29 | ) | (60 | ) | (54 | ) | ||||||||
Gain on wireless spectrum transactions | 63 | - | 181 | 736 | ||||||||||||
Venezuela devaluation | (98 | ) | - | (98 | ) | - | ||||||||||
Segment equity in net (income) loss of affiliates | (14 | ) | (7 | ) | (28 | ) | (24 | ) | ||||||||
AT&T Operating Income | 7,323 | 6,560 | 14,187 | 13,691 | ||||||||||||
Interest expense | 1,395 | 1,258 | 2,688 | 2,465 | ||||||||||||
Equity in net income (loss) of affiliates | 14 | 28 | (159 | ) | 41 | |||||||||||
Other income (expense) - net | 128 | 91 | 108 | 161 | ||||||||||||
Income Before Income Taxes | $ | 6,070 | $ | 5,421 | $ | 11,448 | $ | 11,428 |
Three months ended | Six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Pension cost: | ||||||||||||||||
Service cost – benefits earned during the period | $ | 282 | $ | 278 | $ | 564 | $ | 556 | ||||||||
Interest cost on projected benefit obligation | 484 | 495 | 968 | 990 | ||||||||||||
Expected return on assets | (784 | ) | (780 | ) | (1,567 | ) | (1,558 | ) | ||||||||
Amortization of prior service credit | (31 | ) | (25 | ) | (62 | ) | (51 | ) | ||||||||
Net pension (credit) cost | $ | (49 | ) | $ | (32 | ) | $ | (97 | ) | $ | (63 | ) | ||||
Postretirement cost: | ||||||||||||||||
Service cost – benefits earned during the period | $ | 34 | $ | 48 | $ | 75 | $ | 96 | ||||||||
Interest cost on accumulated postretirement benefit obligation | 202 | 243 | 424 | 486 | ||||||||||||
Expected return on assets | (79 | ) | (89 | ) | (159 | ) | (178 | ) | ||||||||
Amortization of prior service credit | (366 | ) | (319 | ) | (702 | ) | (638 | ) | ||||||||
Actuarial (gain) loss | (259 | ) | - | (259 | ) | - | ||||||||||
Net postretirement (credit) cost | $ | (468 | ) | $ | (117 | ) | $ | (621 | ) | $ | (234 | ) | ||||
Combined net pension and postretirement (credit) cost | $ | (517 | ) | $ | (149 | ) | $ | (718 | ) | $ | (297 | ) |
Three months ended | ||||||||
March 31, | ||||||||
2017 | 2016 | |||||||
Pension cost: | ||||||||
Service cost – benefits earned during the period | $ | 282 | $ | 278 | ||||
Interest cost on projected benefit obligation | 484 | 495 | ||||||
Expected return on assets | (783 | ) | (778 | ) | ||||
Amortization of prior service credit | (31 | ) | (26 | ) | ||||
Net pension (credit) cost | $ | (48 | ) | $ | (31 | ) | ||
Postretirement cost: | ||||||||
Service cost – benefits earned during the period | $ | 41 | $ | 48 | ||||
Interest cost on accumulated postretirement benefit obligation | 222 | 243 | ||||||
Expected return on assets | (80 | ) | (89 | ) | ||||
Amortization of prior service credit | (336 | ) | (319 | ) | ||||
Net postretirement (credit) cost | $ | (153 | ) | $ | (117 | ) | ||
Combined net pension and postretirement (credit) cost | $ | (201 | ) | $ | (148 | ) |
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. |
March 31, 2017 | December 31, 2016 | June 30, 2017 | December 31, 2016 | |||||||||||||||||||||||||||||
Carrying | Fair | Carrying | Fair | Carrying | Fair | Carrying | Fair | |||||||||||||||||||||||||
Amount | Value | Amount | Value | Amount | Value | Amount | Value | |||||||||||||||||||||||||
Notes and debentures 1 | $ | 132,379 | $ | 138,944 | $ | 122,381 | $ | 128,726 | $ | 142,816 | $ | 151,338 | $ | 122,381 | $ | 128,726 | ||||||||||||||||
Bank borrowings | 3 | 3 | 4 | 4 | 2 | 2 | 4 | 4 | ||||||||||||||||||||||||
Investment securities | 2,640 | 2,640 | 2,587 | 2,587 | 2,556 | 2,556 | 2,587 | 2,587 | ||||||||||||||||||||||||
1 Includes credit agreement borrowings. |
March 31, 2017 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Available-for-Sale Securities | ||||||||||||||||
Domestic equities | $ | 1,253 | $ | - | $ | - | $ | 1,253 | ||||||||
International equities | 639 | - | - | 639 | ||||||||||||
Fixed income bonds | - | 501 | - | 501 | ||||||||||||
Asset Derivatives1 | ||||||||||||||||
Interest rate swaps | - | 62 | - | 62 | ||||||||||||
Cross-currency swaps | - | 235 | - | 235 | ||||||||||||
Liability Derivatives1 | ||||||||||||||||
Interest rate swaps | - | (20 | ) | - | (20 | ) | ||||||||||
Cross-currency swaps | - | (3,635 | ) | - | (3,635 | ) | ||||||||||
1 Derivatives designated as hedging instruments are reflected as "Other assets," "Other noncurrent liabilities" and, for a portion of interest rate swaps, "Other current assets" in our consolidated balance sheets. |
June 30, 2017 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Available-for-Sale Securities | ||||||||||||||||
Domestic equities | $ | 1,276 | $ | - | $ | - | $ | 1,276 | ||||||||
International equities | 659 | - | - | 659 | ||||||||||||
Fixed income bonds | - | 370 | - | 370 | ||||||||||||
Asset Derivatives1 | ||||||||||||||||
Interest rate swaps | - | 57 | - | 57 | ||||||||||||
Cross-currency swaps | - | 294 | - | 294 | ||||||||||||
Interest rate locks | - | 3 | - | 3 | ||||||||||||
Liability Derivatives1 | ||||||||||||||||
Interest rate swaps | - | (42 | ) | - | (42 | ) | ||||||||||
Cross-currency swaps | - | (2,631 | ) | - | (2,631 | ) | ||||||||||
Interest rate locks | - | (82 | ) | - | (82 | ) | ||||||||||
1 Derivatives designated as hedging instruments are reflected as "Other assets," "Other noncurrent liabilities" and, for a portion of interest rate swaps, "Other current assets" in our consolidated balance sheets. |
December 31, 2016 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Available-for-Sale Securities | ||||||||||||||||
Domestic equities | $ | 1,215 | $ | - | $ | - | $ | 1,215 | ||||||||
International equities | 594 | - | - | 594 | ||||||||||||
Fixed income bonds | - | 508 | - | 508 | ||||||||||||
Asset Derivatives1 | ||||||||||||||||
Interest rate swaps | - | 79 | - | 79 | ||||||||||||
Cross-currency swaps | - | 89 | - | 89 | ||||||||||||
Liability Derivatives1 | ||||||||||||||||
Interest rate swaps | - | (14 | ) | - | (14 | ) | ||||||||||
Cross-currency swaps | - | (3,867 | ) | - | (3,867 | ) | ||||||||||
1 Derivatives designated as hedging instruments are reflected as "Other assets," "Other noncurrent liabilities" and, for a portion of interest rate swaps, "Other current assets" in our consolidated balance sheets. |
March 31, | December 31, | June 30, | December 31, | |||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Interest rate swaps | $ | 10,450 | $ | 9,650 | $ | 10,775 | $ | 9,650 | ||||||||
Cross-currency swaps | 29,642 | 29,642 | 38,694 | 29,642 | ||||||||||||
Interest rate locks | 5,000 | - | ||||||||||||||
Total | $ | 40,092 | $ | 39,292 | $ | 54,469 | $ | 39,292 |
Following are the related hedged items affecting our financial position and performance: | ||||||||||||||||
Effect of Derivatives on the Consolidated Statements of Income | ||||||||||||||||
Fair Value Hedging Relationships | Three months ended | Six months ended | ||||||||||||||
June 30, | June 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Interest rate swaps (Interest expense): | ||||||||||||||||
Gain (Loss) on interest rate swaps | $ | (23 | ) | $ | 5 | $ | (48 | ) | $ | 71 | ||||||
Gain (Loss) on long-term debt | 23 | (5 | ) | 48 | (71 | ) |
Three months ended | Six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
Cash Flow Hedging Relationships | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Cross-currency swaps: | ||||||||||||||||
Gain (Loss) recognized in accumulated OCI | $ | (717 | ) | $ | (595 | ) | $ | (697 | ) | $ | (404 | ) | ||||
Interest rate locks: | ||||||||||||||||
Gain (Loss) recognized in accumulated OCI | (79 | ) | - | (79 | ) | - | ||||||||||
Interest income (expense) reclassified from accumulated OCI into income | (14 | ) | (14 | ) | (29 | ) | (29 | ) |
Following are the related hedged items affecting our financial position and performance: | ||||||||
Effect of Derivatives on the Consolidated Statements of Income | ||||||||
Fair Value Hedging Relationships | Three months ended | |||||||
March 31, | ||||||||
2017 | 2016 | |||||||
Interest rate swaps (Interest expense): | ||||||||
Gain (Loss) on interest rate swaps | $ | (25 | ) | $ | 66 | |||
Gain (Loss) on long-term debt | 25 | (66 | ) |
Three months ended | ||||||||
March 31, | ||||||||
Cash Flow Hedging Relationships | 2017 | 2016 | ||||||
Cross-currency swaps: | ||||||||
Gain (Loss) recognized in accumulated OCI | $ | 20 | $ | 191 | ||||
Interest rate locks: | ||||||||
Interest income (expense) reclassified from accumulated OCI into income | (15 | ) | (15 | ) |
Three months ended | Three months ended | Six months ended | ||||||||||||||||||||||
March 31, | June 30, | June 30, | ||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||
Gross receivables sold | $ | 2,846 | $ | 2,482 | $ | 1,752 | $ | 1,845 | $ | 4,598 | $ | 4,327 | ||||||||||||
Net receivables sold 1 | 2,621 | 2,256 | 1,599 | 1,671 | 4,220 | 3,927 | ||||||||||||||||||
Cash proceeds received | 1,432 | 1,521 | 1,415 | 1,126 | 2,847 | 2,647 | ||||||||||||||||||
Deferred purchase price recorded | 1,189 | 719 | 293 | 563 | 1,482 | 1,282 | ||||||||||||||||||
Guarantee obligation recorded | 74 | - | 74 | - | ||||||||||||||||||||
1 Receivables net of allowance, imputed interest and trade-in right guarantees. | 1 Receivables net of allowance, imputed interest and trade-in right guarantees. | 1 Receivables net of allowance, imputed interest and trade-in right guarantees. |
Three months ended | Three months ended | Six months ended | ||||||||||||||||||||||
March 31, | June 30, | June 30, | ||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||
Fair value of repurchased receivables | $ | 377 | $ | 532 | $ | 337 | $ | - | $ | 714 | $ | 532 | ||||||||||||
Carrying value of deferred purchase price | 339 | 539 | 301 | - | 640 | 539 | ||||||||||||||||||
Gain (loss) on repurchases 1 | $ | 38 | $ | (7 | ) | $ | 36 | $ | - | $ | 74 | $ | (7 | ) | ||||||||||
1 These gains (losses) are included in "Selling, general and administrative" in the consolidated statements of income. | 1 These gains (losses) are included in "Selling, general and administrative" in the consolidated statements of income. | 1 These gains (losses) are included in "Selling, general and administrative" in the consolidated statements of income. |
2017 | 2017 | |||||||
Outstanding derecognized receivables at January 1, | $ | 7,232 | $ | 7,232 | ||||
Gross receivables sold | 2,846 | 4,598 | ||||||
Collections on cash purchase price | (1,128 | ) | (2,337 | ) | ||||
Collections on deferred purchase price | (185 | ) | (382 | ) | ||||
Fees | (23 | ) | (48 | ) | ||||
Trade ins and other | (73 | ) | (141 | ) | ||||
Fair value of repurchased receivables | (377 | ) | (714 | ) | ||||
Outstanding derecognized receivables at March 31, | $ | 8,292 | ||||||
Outstanding derecognized receivables at June 30, | $ | 8,208 |
· | $750 of floating rate notes due 2023. |
· | $1,750 of 2.850% global notes due 2023. |
· | $3,000 of 3.400% global notes due 2024. |
· | $5,000 of 3.900% global notes due 2027. |
· | $4,500 of 4.900% global notes due 2037. |
· | $5,000 of 5.150% global notes due 2050. |
· | $2,500 of 5.300% global notes due 2058. |
First Quarter | Second Quarter | Six-Month Period | ||||||||||||||||||||||||||||||||||
2017 | 2016 | Percent Change | 2017 | 2016 | Percent Change | 2017 | 2016 | Percent Change | ||||||||||||||||||||||||||||
Operating Revenues | ||||||||||||||||||||||||||||||||||||
Service | $ | 36,456 | $ | 37,101 | (1.7 | )% | $ | 36,538 | $ | 37,142 | (1.6 | )% | $ | 72,994 | $ | 74,243 | (1.7 | )% | ||||||||||||||||||
Equipment | 2,909 | 3,434 | (15.3 | ) | 3,299 | 3,378 | (2.3 | ) | 6,208 | 6,812 | (8.9 | ) | ||||||||||||||||||||||||
Total Operating Revenues | 39,365 | 40,535 | (2.9 | ) | 39,837 | 40,520 | (1.7 | ) | 79,202 | 81,055 | (2.3 | ) | ||||||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||||||||||||
Cost of services and sales | ||||||||||||||||||||||||||||||||||||
Equipment | 3,848 | 4,375 | (12.0 | ) | 4,138 | 4,260 | (2.9 | ) | 7,986 | 8,635 | (7.5 | ) | ||||||||||||||||||||||||
Broadcast, programming and operations | 4,974 | 4,629 | 7.5 | 4,898 | 4,701 | 4.2 | 9,872 | 9,330 | 5.8 | |||||||||||||||||||||||||||
Other cost of services | 9,065 | 9,396 | (3.5 | ) | 9,218 | 9,514 | (3.1 | ) | 18,283 | 18,910 | (3.3 | ) | ||||||||||||||||||||||||
Selling, general and administrative | 8,487 | 8,441 | 0.5 | 8,113 | 8,909 | (8.9 | ) | 16,600 | 17,350 | (4.3 | ) | |||||||||||||||||||||||||
Depreciation and amortization | 6,127 | 6,563 | (6.6 | ) | 6,147 | 6,576 | (6.5 | ) | 12,274 | 13,139 | (6.6 | ) | ||||||||||||||||||||||||
Total Operating Expenses | 32,501 | 33,404 | (2.7 | ) | 32,514 | 33,960 | (4.3 | ) | 65,015 | 67,364 | (3.5 | ) | ||||||||||||||||||||||||
Operating Income | 6,864 | 7,131 | (3.7 | ) | 7,323 | 6,560 | 11.6 | 14,187 | 13,691 | 3.6 | ||||||||||||||||||||||||||
Income Before Income Taxes | 5,378 | 6,007 | (10.5 | ) | 6,070 | 5,421 | 12.0 | 11,448 | 11,428 | 0.2 | ||||||||||||||||||||||||||
Net Income | 3,574 | 3,885 | (8.0 | ) | 4,014 | 3,515 | 14.2 | 7,588 | 7,400 | 2.5 | ||||||||||||||||||||||||||
Net Income Attributable to AT&T | $ | 3,469 | $ | 3,803 | (8.8 | )% | $ | 3,915 | $ | 3,408 | 14.9 | % | $ | 7,384 | $ | 7,211 | 2.4 | % |