Exhibit 99c
Unaudited Quarterly Pro Forma Condensed Combined Financial Statements
As a convenience to the reader, we are updating our Unaudited Pro Forma Condensed Combined Consolidated Statements of Income for each quarter of 2006 and 2005, adjusted to give effect to AT&T Inc.’s (AT&T) acquisitions of AT&T Corp. and BellSouth Corporation (BellSouth) as if they had occurred on January 1, 2005, to reflect immaterial adjustments, namely, to consolidate YellowPages.com and to conform certain accounting policies between the companies. These Unaudited Pro Forma Condensed Combined Statements of Income do not give effect to the adjustment for deferred revenues and expenses for directories delivered in the year prior to the merger. Had we included the adjustment for these directory deferred revenues and expenses our annual 2005 Operating Revenues would have been reduced by $892 million and our Operating Expenses would have been reduced by $191.
The pro forma amounts have been developed from the unaudited condensed consolidated financial statements contained in the Quarterly Reports on Form 10-Q filed by AT&T, AT&T Corp, BellSouth and AT&T Mobility (formerly Cingular Wireless) and the unaudited books and records of the acquired companies for the quarterly period prior to the respective acquisition dates. Pro forma information was originally included in our Form 8-K/A filed with the Securities and Exchange Commission on January 25, 2007
The table below provides summarized quarterly information and includes reclassifications to conform presentation of AT&T Corp, BellSouth and AT&T Mobility expense items. Additional revenue information and pro forma segment information is provided following these tables.
AT&T INC. |
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UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENTS OF INCOME FOR THE QUARTERS AND YEAR ENDED 2006 | |||||||||||
Dollars in millions |
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| For the Quarter Ended |
| For the Year Ended | |||||||
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| Mar 31, |
| Jun 30, |
| Sep 30, |
| Dec 31, |
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Total Operating Revenues | $ | 28,900 | $ | 29,204 | $ | 29,392 | $ | 29,558 |
| $ | 117,054 |
Operating Expenses |
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Cost of sales, selling, general and |
| 19,523 |
| 19,230 |
| 18,632 |
| 19,255 |
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| 76,640 |
Depreciation and amortization |
| 5,518 |
| 5,406 |
| 5,307 |
| 5,285 |
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| 21,516 |
Total Operating Expenses |
| 25,041 |
| 24,636 |
| 23,939 |
| 24,540 |
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| 98,156 |
Operating Income |
| 3,859 |
| 4,568 |
| 5,453 |
| 5,018 |
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| 18,898 |
Interest expense |
| 932 |
| 928 |
| 923 |
| 884 |
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| 3,667 |
Other income (expense) - net |
| 134 |
| 156 |
| 182 |
| 149 |
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| 621 |
Income Before Income Taxes |
| 3,061 |
| 3,796 |
| 4,712 |
| 4,283 |
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| 15,852 |
Provision (benefit) for income taxes |
| 1,079 |
| 1,326 |
| 1,696 |
| 1,444 |
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| 5,545 |
Net Income | $ | 1,982 | $ | 2,470 | $ | 3,016 | $ | 2,839 |
| $ | 10,307 |
AT&T INC. |
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UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENTS OF INCOME FOR THE QUARTERS AND YEAR ENDED 2005 | |||||||||||
Dollars in millions |
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| For the Quarter Ended |
| For the Year Ended | |||||||
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| Mar 31, |
| Jun 30, |
| Sep 30, |
| Dec 31, |
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Total Operating Revenues | $ | 29,016 | $ | 29,361 | $ | 29,239 | $ | 29,189 |
| $ | 116,805 |
Operating Expenses |
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Cost of sales, selling, general and |
| 19,817 |
| 20,083 |
| 19,696 |
| 20,954 |
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| 80,550 |
Depreciation and amortization |
| 5,949 |
| 5,776 |
| 5,582 |
| 5,634 |
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| 22,941 |
Total Operating Expenses |
| 25,766 |
| 25,859 |
| 25,278 |
| 26,588 |
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| 103,491 |
Operating Income |
| 3,250 |
| 3,502 |
| 3,961 |
| 2,601 |
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| 13,314 |
Interest expense |
| 1,012 |
| 960 |
| 950 |
| 945 |
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| 3,867 |
Other income (expense) - net |
| 200 |
| (1) |
| 383 |
| 273 |
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| 855 |
Income Before Income Taxes |
| 2,438 |
| 2,541 |
| 3,394 |
| 1,929 |
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| 10,302 |
Provision (benefit) for income taxes |
| 866 |
| 867 |
| 1,174 |
| (275) |
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| 2,632 |
Income from Continuing Operations |
| 1,572 |
| 1,674 |
| 2,220 |
| 2,204 |
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| 7,670 |
Income from discontinued operations |
| 381 |
| - |
| - |
| - |
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| 381 |
Net Income | $ | 1,953 | $ | 1,674 | $ | 2,220 | $ | 2,204 |
| $ | 8,051 |
AT&T INC. |
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PRO FORMA RESTATED CONSOLIDATED REVENUE BY PRODUCT SUPPLEMENTAL DETAIL FOR THE QUARTERS AND YEAR ENDED 2006 | |||||||||||
Dollars in millions |
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| For the Quarter Ended |
| For the Year Ended | |||||||
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| Mar 31, |
| Jun 30, |
| Sep 30, |
| Dec 31, |
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Operating Revenues |
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Voice | $ | 11,109 | $ | 10,996 | $ | 10,850 | $ | 10,550 |
| $ | 43,505 |
Data |
| 5,450 |
| 5,492 |
| 5,579 |
| 5,652 |
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| 22,173 |
Wireless service |
| 8,013 |
| 8,302 |
| 8,670 |
| 8,803 |
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| 33,788 |
Directory |
| 1,413 |
| 1,463 |
| 1,456 |
| 1,491 |
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| 5,823 |
Other |
| 2,915 |
| 2,951 |
| 2,837 |
| 3,062 |
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| 11,765 |
Total Operating Revenues | $ | 28,900 | $ | 29,204 | $ | 29,392 | $ | 29,558 |
| $ | 117,054 |
AT&T INC. |
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PRO FORMA RESTATED WIRELINE REVENUE BY PRODUCT SUPPLEMENTAL DETAIL FOR THE QUARTERS AND YEAR ENDED 2006 | |||||||||||
Dollars in millions |
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| For the Quarter Ended |
| For the Year Ended | |||||||
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| Mar 31, |
| Jun 30, |
| Sep 30, |
| Dec 31, |
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Operating Revenues |
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Voice | $ | 11,417 | $ | 11,290 | $ | 11,162 | $ | 10,845 |
| $ | 44,714 |
Data |
| 5,659 |
| 5,722 |
| 5,822 |
| 5,893 |
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| 23,096 |
Transport |
| 2,809 |
| 2,842 |
| 2,869 |
| 2,915 |
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| 11,435 |
Packet-Switched |
| 834 |
| 805 |
| 804 |
| 788 |
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| 3,231 |
IP |
| 2,016 |
| 2,075 |
| 2,149 |
| 2,190 |
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| 8,430 |
Other |
| 1,507 |
| 1,601 |
| 1,531 |
| 1,673 |
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| 6,312 |
Total Operating Revenues |
| 18,583 |
| 18,613 |
| 18,515 |
| 18,411 |
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| 74,122 |
AT&T INC. |
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PRO FORMA RESTATED WIRELINE SEGMENT REVENUE BY CUSTOMER | |||||||||||
Dollars in millions |
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| For the Quarter Ended |
| For the Year Ended | |||||||
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| Mar 31, |
| Jun 30, |
| Sep 30, |
| Dec 31, |
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Operating Revenues |
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Consumer In-region | $ | 5,587 | $ | 5,600 | $ | 5,617 | $ | 5,549 |
| $ | 22,353 |
Business In-region |
| 2,839 |
| 2,919 |
| 2,962 |
| 2,977 |
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| 11,697 |
Wholesale |
| 3,844 |
| 3,800 |
| 3,744 |
| 3,725 |
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| 15,113 |
Enterprise |
| 4,915 |
| 4,906 |
| 4,886 |
| 4,925 |
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| 19,632 |
National Mass Markets |
| 1,462 |
| 1,375 |
| 1,333 |
| 1,214 |
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| 5,384 |
Other |
| (64) |
| 13 |
| (27) |
| 21 |
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| (57) |
Total Operating Revenues | $ | 18,583 | $ | 18,613 | $ | 18,515 | $ | 18,411 |
| $ | 74,122 |
AT&T INC. | |||||||||||
PRO FORMA SEGMENT REVENUES FOR THE QUARTERS AND YEAR ENDED 2006 | |||||||||||
Dollars in millions |
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| For the Quarter Ended |
| For the Year Ended | |||||||
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| Mar 31, |
| Jun 30, |
| Sep 30, |
| Dec 31, |
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Wireline – AT&T | $ | 14,421 | $ | 14,436 | $ | 14,306 | $ | 14,315 |
| $ | 57,478 |
Wireline – BellSouth |
| 4,369 |
| 4,363 |
| 4,387 |
| 4,281 |
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| 17,400 |
Adjustments |
| (207) |
| (186) |
| (178) |
| (185) |
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| (756) |
Wireline Segment Pro Forma Revenues | $ | 18,583 | $ | 18,613 | $ | 18,515 | $ | 18,411 |
| $ | 74,122 |
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Wireless Segment Pro Forma Revenues | $ | 8,988 | $ | 9,225 | $ | 9,561 | $ | 9,763 |
| $ | 37,537 |
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Advertising & Publishing – AT&T | $ | 923 | $ | 925 | $ | 921 | $ | 946 |
| $ | 3,715 |
Advertising & Publishing – BellSouth |
| 506 |
| 547 |
| 537 |
| 563 |
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| 2,153 |
Advertising & Publishing – Yellopages.com |
| 29 |
| 35 |
| 33 |
| 33 |
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| 130 |
Adjustments |
| (24) |
| (26) |
| (22) |
| (22) |
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| (94) |
Advertising & Publishing Segment Pro Forma Revenues | $ | 1,434 | $ | 1,481 | $ | 1,469 | $ | 1,520 |
| $ | 5,904 |
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Other – AT&T | $ | 473 | $ | 463 | $ | 476 | $ | 496 |
| $ | 1,908 |
Other – BellSouth |
| 89 |
| 85 |
| 85 |
| 84 |
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| 343 |
Adjustments |
| - |
| - |
| 1 |
| 4 |
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| 5 |
Other Segment Pro Forma Revenues | $ | 562 | $ | 548 | $ | 562 | $ | 584 |
| $ | 2,256 |
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Intercompany revenue with AT&T Mobility | $ | (579) | $ | (587) | $ | (626) | $ | (610) |
| $ | (2,402) |
Other adjustments |
| (88) |
| (76) |
| (89) |
| (110) |
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| (363) |
Eliminations and Other Adjustments | $ | (667) | $ | (663) | $ | (715) | $ | (720) |
| $ | (2,765) |
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Total Operating Revenues | $ | 28,900 | $ | 29,204 | $ | 29,392 | $ | 29,558 |
| $ | 117,054 |
AT&T INC. |
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PRO FORMA RESTATED CONSOLIDATED REVENUE BY PRODUCT SUPPLEMENTAL DETAIL FOR THE QUARTERS AND YEAR ENDED 2005 | |||||||||||
Dollars in millions |
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| For the Quarter Ended |
| For the Year Ended | |||||||
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| Mar 31, |
| Jun 30, |
| Sep 30, |
| Dec 31, |
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Operating Revenues |
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Voice | $ | 12,025 | $ | 11,833 | $ | 11,600 | $ | 11,391 |
| $ | 46,849 |
Data |
| 5,276 |
| 5,296 |
| 5,350 |
| 5,404 |
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| 21,326 |
Wireless service |
| 7,427 |
| 7,726 |
| 7,730 |
| 7,790 |
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| 30,673 |
Directory |
| 1,397 |
| 1,434 |
| 1,426 |
| 1,432 |
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| 5,689 |
Other |
| 2,891 |
| 3,072 |
| 3,133 |
| 3,172 |
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| 12,268 |
Total Operating Revenues | $ | 29,016 | $ | 29,361 | $ | 29,239 | $ | 29,189 |
| $ | 116,805 |
AT&T INC. |
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PRO FORMA RESTATED WIRELINE REVENUE BY PRODUCT SUPPLEMENTAL DETAIL FOR THE QUARTERS AND YEAR ENDED 2005 | |||||||||||
Dollars in millions |
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| For the Quarter Ended |
| For the Year Ended | |||||||
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| Mar 31, |
| Jun 30, |
| Sep 30, |
| Dec 31, |
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Operating Revenues |
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Voice | $ | 12,241 | $ | 12,063 | $ | 11,866 | $ | 11,683 |
| $ | 47,853 |
Data |
| 5,458 |
| 5,490 |
| 5,561 |
| 5,645 |
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| 22,154 |
Transport |
| 2,733 |
| 2,747 |
| 2,790 |
| 2,803 |
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| 11,073 |
Packet-Switched |
| 966 |
| 940 |
| 910 |
| 875 |
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| 3,691 |
IP |
| 1,759 |
| 1,803 |
| 1,861 |
| 1,967 |
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| 7,390 |
Other |
| 1,602 |
| 1,686 |
| 1,625 |
| 1,640 |
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| 6,553 |
Total Operating Revenues |
| 19,301 |
| 19,239 |
| 19,052 |
| 18,968 |
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| 76,560 |
AT&T INC. |
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PRO FORMA RESTATED WIRELINE SEGMENT REVENUE BY CUSTOMER | |||||||||||
Dollars in millions |
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| For the Quarter Ended |
| For the Year Ended | |||||||
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| Mar 31, |
| Jun 30, |
| Sep 30, |
| Dec 31, |
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Operating Revenues |
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Consumer In-region | $ | 5,479 | $ | 5,492 | $ | 5,536 | $ | 5,586 |
| $ | 22,093 |
Business In-region |
| 2,673 |
| 2,774 |
| 2,774 |
| 2,791 |
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| 11,012 |
Wholesale |
| 3,972 |
| 3,882 |
| 3,940 |
| 3,972 |
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| 15,766 |
Enterprise |
| 5,197 |
| 5,236 |
| 5,098 |
| 5,063 |
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| 20,594 |
National Mass Markets |
| 2,015 |
| 1,900 |
| 1,786 |
| 1,616 |
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| 7,317 |
Other |
| (35) |
| (45) |
| (82) |
| (60) |
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| (222) |
Total Operating Revenues | $ | 19,301 | $ | 19,239 | $ | 19,052 | $ | 18,968 |
| $ | 76,560 |
AT&T INC. | |||||||||||
PRO FORMA SEGMENT REVENUES FOR THE QUARTERS AND YEAR ENDED 2005 | |||||||||||
Dollars in millions |
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| For the Quarter Ended |
| For the Year Ended | |||||||
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| Mar 31, |
| Jun 30, |
| Sep 30, |
| Dec 31, |
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Wireline – AT&T | $ | 8,918 | $ | 8,995 | $ | 8,974 | $ | 11,567 |
| $ | 38,454 |
Wireline – AT&T Corp. |
| 6,859 |
| 6,628 |
| 6,472 |
| 3,367 |
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| 23,326 |
Wireline – BellSouth |
| 4,274 |
| 4,279 |
| 4,246 |
| 4,342 |
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| 17,141 |
Adjustments |
| (750) |
| (663) |
| (640) |
| (308) |
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| (2,361) |
Wireline Segment Pro Forma Revenues | $ | 19,301 | $ | 19,239 | $ | 19,052 | $ | 18,968 |
| $ | 76,560 |
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Wireless Segment Pro Forma Revenues | $ | 8,237 | $ | 8,616 | $ | 8,755 | $ | 8,860 |
| $ | 34,468 |
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Advertising & Publishing – AT&T | $ | 929 | $ | 925 | $ | 932 | $ | 928 |
| $ | 3,714 |
Advertising & Publishing – BellSouth |
| 491 |
| 531 |
| 509 |
| 529 |
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| 2,060 |
Advertising & Publishing – Yellopages.com |
| 14 |
| 17 |
| 17 |
| 17 |
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| 65 |
Adjustments |
| (14) |
| (14) |
| (17) |
| (16) |
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| (61) |
Advertising & Publishing Segment Pro Forma Revenues | $ | 1,420 | $ | 1,459 | $ | 1,441 | $ | 1,458 |
| $ | 5,778 |
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Other – AT&T | $ | 424 | $ | 433 | $ | 428 | $ | 476 |
| $ | 1,761 |
Other – AT&T Corp. |
| 71 |
| 70 |
| 72 |
| 35 |
|
| 248 |
Other – BellSouth |
| 91 |
| 93 |
| 93 |
| 91 |
|
| 368 |
Adjustments |
| (7) |
| (5) |
| (7) |
| (2) |
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| (21) |
Other Segment Pro Forma Revenues | $ | 579 | $ | 591 | $ | 586 | $ | 600 |
| $ | 2,356 |
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Intercompany revenue with AT&T Mobility | $ | (493) | $ | (500) | $ | (555) | $ | (577) |
| $ | (2,125) |
Other adjustments |
| (28) |
| (44) |
| (40) |
| (120) |
|
| (232) |
Eliminations and Other Adjustments | $ | (521) | $ | (544) | $ | (595) | $ | (697) |
| $ | (2,357) |
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Total Operating Revenues | $ | 29,016 | $ | 29,361 | $ | 29,239 | $ | 29,189 |
| $ | 116,805 |
