| Financial Data |
| SBC COMMUNCIATIONS INC. |
| CONSOLIDATED STATEMENTS OF CASH FLOWS |
| Dollars in millions, increase (decrease) in cash and cash equivalents |
| (Unaudited) | Three months ended |
| 3/31/03 | 3/31/02 |
| Operating Activities | ||||
| Net income (Loss) | $ | 5,003 | $ | (193) |
| Adjustments to reconcile net income (Loss) to net cash provided by operating activities: | ||||
| Depreciation and amortization | 1,996 | 2,136 | ||
| Undistributed earnings from investments in equity affiliates | (345) | (384) | ||
| Provision for uncollectible accounts | 282 | 362 | ||
| Amortization of investment tax credits | (9) | (9) | ||
| Deferred income tax expense | 215 | 398 | ||
| Gain on sales of investments | (1,574) | (90) | ||
| Cumulative effect of accounting change, net of tax | (2,548) | 1,820 | ||
| Changes in operating assets and liabilities: | ||||
| Accounts receivable | 311 | 693 | ||
| Other current assets | (126) | (216) | ||
| Accounts payable and accrued liabilities | (276) | (2,366) |
| Other - net | (294) | 111 |
| Total adjustments | (2,368) | 2,455 |
| Net Cash Provided by Operating Activities | 2,635 | 2,262 |
| Investing Activities | ||||
| Construction and capital expenditures | (897) | (1,765) | ||
| Purchase of short-term investments | (5) | - | ||
| Dispositions | 2,270 | 83 |
| Acquisitions | - | (406) |
| Net Cash Provided by (Used in) Investing Activities | 1,368 | (2,088) |
| Financing Activities | ||||
| Net change in short-term borrowings with original maturities of three months or less | 49 | 1,425 | ||
| Issuance of other short-term borrowings | - | 2,844 | ||
| Repayment of other short-term borrowings | (1,070) | (3,738) | ||
| Issuance of long-term debt | - | 994 | ||
| Repayment of long-term debt | (841) | (151) | ||
| Purchase of treasury shares | - | (593) | ||
| Issuance of treasury shares | 21 | 32 |
| Dividends paid | (897) | (860) |
| Net Cash Used in Financing Activities | (2,738) | (47) |
| Net increase (decrease) in cash and cash equivalants | 1,265 | 127 |
| Cash and cash equivalents beginning of year | 3,567 | 703 |
| Cash and Cash Equivalents End of Period | $ | 4,832 | $ | 830 |
