AT&T (T) 8-K Other Events

Financial Data
AT&T Inc.
Consolidated Statements of Income
Dollars in millions except per share amounts
Unaudited	Three Months Ended						Twelve Months Ended
	12/31/2007		12/31/2006		% Chg		12/31/2007		12/31/2006		% Chg
Operating Revenues
Voice	$	9,801	$	8,190		19.7%	$	40,798	$	33,714		21.0%
Data		5,925		4,684		26.5%		23,206		18,317		26.7%
Wireless service		10,151		199		-		38,568		223		-
Directory		1,389		918		51.3%		4,806		3,634		32.3%
Other		3,083		1,900		62.3%		11,550		7,167		61.2%
Total Operating Revenues		30,349		15,891		91.0%		118,928		63,055		88.6%
Operating Expenses
Cost of services and sales (exclusive of
depreciation and amortization shown separately below)		11,734		7,092		65.5%		46,055		28,542		61.4%
Selling, general and administrative		7,900		3,731		-		30,892		14,318		-
Depreciation and amortization		5,223		2,492		-		21,577		9,907		-
Total Operating Expenses		24,857		13,315		86.7%		98,524		52,767		86.7%
Operating Income		5,492		2,576		-		20,404		10,288		98.3%
Interest Expense		868		465		86.7%		3,507		1,843		90.3%
Equity in Net Income of Affiliates		147		605		-75.7%		692		2,043		-66.1%
Other Income (Expense) - Net		1		78		-98.7%		615		393		56.5%
Income Before Income Taxes		4,772		2,794		70.8%		18,204		10,881		67.3%
Income Taxes		1,636		856		91.1%		6,253		3,525		77.4%
Net Income	$	3,136	$	1,938		61.8%	$	11,951	$	7,356		62.5%
Basic Earnings Per Share	$	0.52	$	0.50		4.0%	$	1.95	$	1.89		3.2%
Weighted Average Common
Shares Outstanding (000,000)		6,054		3,888		55.7%		6,127		3,882		57.8%
Diluted Earnings Per Share	$	0.51	$	0.50		2.0%	$	1.94	$	1.89		2.6%
Weighted Average Common
Shares Outstanding with Dilution (000,000)		6,095		3,911		55.8%		6,170		3,902		58.1%

AT&T Inc.
Statements of Segment Income
Dollars in millions
Unaudited
	Three Months Ended									Twelve Months Ended
Wireless *	12/31/2007			12/31/2006			% Ch		g	12/31/2007			12/31/2006			% Ch		g
Segment Operating Revenues
Service revenues	$	10,186		$	8,803			15.7	%	$	38,678		$	33,788			14.5	%
Equipment sales		1,169			960			21.8	%		4,006			3,749			6.9	%
Total Segment Operating Revenues		11,355			9,763			16.3	%		42,684			37,537			13.7	%
Segment Operating Expenses
Cost of services and equipment sales		4,301			3,839			12.0	%		15,991			15,057			6.2	%
Selling, general and administrative		3,458			3,007			15.0	%		12,594			11,446			10.0	%
Depreciation and amortization		1,669			1,588			5.1	%		7,079			6,462			9.5	%
Total Segment Operating Expenses		9,428			8,434			11.8	%		35,664			32,965			8.2	%
Segment Operating Income		1,927			1,329			45.0	%		7,020			4,572			53.5	%
Equity in Net Income of Affiliates		4			10			-60.0	%		16			40			-60.0	%
Minority Interest		(55	)		(40	)		-37.5	%		(198	)		(169	)		-17.2	%
Segment Income	$	1,876		$	1,299			44.4	%	$	6,838		$	4,443			53.9	%

* Results include 100% of AT&T's actual wireless results.

Wireline
Segment Operating Revenues
Voice	$	10,011	$	8,190		22.2	%	$	41,630	$	33,714		23.5	%
Data		6,157		4,684		31.4	%		24,075		18,317		31.4	%
Other		1,490		1,441		3.4	%		5,872		5,447		7.8	%
Total Segment Operating Revenues		17,658		14,315		23.4	%		71,577		57,478		24.5	%
Segment Operating Expenses
Cost of sales		7,413		6,621		12.0	%		30,214		26,693		13.2	%
Selling, general and administrative		4,023		3,369		19.4	%		16,180		13,185		22.7	%
Depreciation and amortization		3,338		2,410		38.5	%		13,411		9,676		38.6	%
Total Segment Operating Expenses		14,774		12,400		19.1	%		59,805		49,554		20.7	%
Segment Income	$	2,884	$	1,915		50.6	%	$	11,772	$	7,924		48.6	%
Advertising & Publishing
Segment Operating Revenues	$	1,473	$	939		56.9	%	$	5,851	$	3,685		58.8	%
Segment Operating Expenses
Cost of sales		452		268		68.7	%		1,733		1,121		54.6	%
Selling, general and administrative		333		171		94.7	%		1,333		616		-
Depreciation and amortization		181		1		-			924		3		-
Total Segment Operating Expenses		966		440		-			3,990		1,740		-
Segment Operating Income		507		499		1.6	%		1,861		1,945		-4.3	%
Equity in Net Income (Loss) of Affiliates		-		(4	)	-			-		(17	)	-
Segment Income	$	507	$	495		2.4	%	$	1,861	$	1,928		-3.5	%
Other **
Segment Operating Revenues	$	570	$	488		16.8	%	$	2,234	$	1,878		19.0	%
Segment Operating Expenses		359		348		3.2	%		1,827		1,485		23.0	%
Segment Operating Income		211		140		50.7	%		407		393		3.6	%
Equity in Net Income of Affiliates		143		599		-76.1	%		676		2,020		-66.5	%
Segment Income	$	354	$	739		-52.1	%	$	1,083	$	2,413		-55.1	%

** Equity in Net Income of Affiliates includes our 60% proportionate share of wireless results in 2006.

Financial Data
AT&T Inc.
Consolidated Balance Sheets
Dollars in millions except per share amounts
	12/31/07			12/31/06
	Unaudited
Assets
Current Assets
Cash and cash equivalents	$	1,970		$	2,418
Accounts receivable - net of allowances for
uncollectibles of $1,364 and $1,276		16,678			16,194
Prepaid expenses		1,524			1,477
Deferred income taxes		2,099			3,034
Other current assets		2,470			2,430
Total current assets		24,741			25,553
Property, Plant and Equipment - Net		95,890			94,596
Goodwill		70,713			67,657
Licenses		37,985			34,252
Customer Lists and Relationships - Net		14,505			18,922
Other Intangible Assets - Net		5,912			6,566
Investments in Equity Affiliates		2,270			1,995
Postemployment Benefit		18,146			14,228
Other Assets		6,392			6,865
Total Assets	$	276,554		$	270,634
Liabilities and Stockholders' Equity
Current Liabilities
Debt maturing within one year	$	6,860		$	9,733
Accounts payable and accrued liabilities		21,399			22,106
Advanced billing and customer deposits		3,571			3,402
Accrued taxes		5,027			3,026
Dividends payable		2,417			2,215
Total current liabilities		39,274			40,482
Long-Term Debt		57,255			50,063
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes		24,994			27,406
Postemployment benefit obligation		24,866			28,901
Unamortized investment tax credits		150			181
Other noncurrent liabilities		14,648			8,061
Total deferred credits and other noncurrent liabilities		64,658			64,549
Stockholders' Equity
Common shares issued ($1 par value)		6,495			6,495
Capital in excess of par value		91,638			91,352
Retained earnings		33,297			30,375
Treasury shares (at cost)		(15,683	)		(7,368	)
Accumulated other comprehensive income		(380	)		(5,314	)
Total stockholders' equity		115,367			115,540
Total Liabilities and Stockholders' Equity	$	276,554		$	270,634

Financial Data
AT&T Inc.
Consolidated Statements of Cash Flows
Dollars in millions, increase (decrease) in cash and cash equivalents
Unaudited	Twelve Months Ended
	12/31/07			12/31/06			12/31/05
Operating Activities
Net income	$	11,951		$	7,356		$	4,786
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization		21,577			9,907			7,643
Undistributed earnings from investments in equity affiliates		(297	)		(1,946	)		(451	)
Provision for uncollectible accounts		1,617			586			744
Amortization of investment tax credits		(31	)		(28	)		(21	)
Deferred income tax benefit		(240	)		(87	)		(658	)
Net gain on sales of investments		(11	)		(10	)		(135	)
Gain on license exchange		(409	)		-			-
Changes in operating assets and liabilities:
Accounts receivable		(1,984	)		519			(94	)
Other current assets		(527	)		30			34
Accounts payable and accrued liabilities		672			(2,213	)		74
Stock-based compensation tax benefit		(173	)		(18	)		(3	)
Other - net		1,927			1,519			1,055
Total adjustments		22,121			8,259			8,188
Net Cash Provided by Operating Activities		34,072			15,615			12,974
Investing Activities
Construction and capital expenditures		(17,717	)		(8,320	)		(5,576	)
Net investments in affiliates		-			(1,104	)		2,436
Dispositions		1,594			756			526
Acquisitions, net of cash acquired		(2,873	)		368			1,504
Proceeds from sale of marketable securities		471			-			-
Proceeds from sale of debt and equity securities		562			-			-
Investments in debt and equity securities		(579	)		-			-
Maturities of held-to-maturity securities		-			-			99
Proceeds from note repayment		-			-			37
Other		36			7			-
Net Cash Used in Investing Activities		(18,506	)		(8,293	)		(974	)
Financing Activities
Net change in short-term borrowings with
original maturities of three months or less		(3,411	)		3,649			(4,119	)
Issuance of long-term debt		11,367			1,491			1,973
Repayment of long-term debt		(6,772	)		(4,242	)		(2,682	)
Purchase of treasury shares		(10,390	)		(2,678	)		(1,843	)
Issuance of treasury shares		1,986			589			432
Repurchase of preferred shares of subsidiaries		-			-			(728	)
Dividends paid		(8,743	)		(5,153	)		(4,256	)
Stock-based compensation tax benefit		173			18			3
Other		(224	)		198			(6	)
Net Cash Used in Financing Activities		(16,014	)		(6,128	)		(11,226	)
Net increase (decrease) in cash and cash equivalents
from continuing operations		(448	)		1,194			774
Net Cash Used in Operating Activities from Discontinued Operations		-			-			(310	)
Net increase (decrease) in cash and cash equivalents		(448	)		1,194			464
Cash and cash equivalents beginning of year		2,418			1,224			760
Cash and Cash Equivalents End of Year	$	1,970		$	2,418		$	1,224

Financial Data
AT&T Inc.
Supplementary Operating Data
Unaudited	Three Months Ended									Year to Date
	12/31/2007			12/31/2006			% Ch		g	12/31/2007			12/31/2006			% Ch		g
Wireless
Wireless Customers (000)											70,052			60,962			14.9	%
Net Customer Additions (000)		2,675			2,357			13.5	%		7,315			6,892			6.1	%
M&A Activity, Partitioned Customers and Other Adjs. (000)		1,711			(61	)		-			1,775			(74	)		-
Postpaid Customers (000)											55,310			49,877			10.9	%
Net Postpaid Customer Additions (000)		1,178			861			36.8	%		3,982			3,730			6.8	%
Postpaid Churn		1.2%			1.5%		-30 B		P		1.3%			1.5%		-20 B		P
Licensed POPs (000,000) 1											299			296			1.0	%
In-Region Wireline 2
Total Consumer Revenue Connections (000)
Retail Consumer Access Lines											35,047			37,120			-5.6	%
Consumer Broadband Connections 3											12,082			10,278			17.6	%
Video Connections: 4
Satellite Connections											2,116			1,507			40.4	%
U-verse Video Connections											231			3			-
Total Consumer Revenue Connections (000)											49,476			48,908			1.2	%
Net Consumer Revenue Connections Changes (000)		(163	)		15,711			-			568			15,905			-96.4	%
Switched Access Lines (000)7
Retail Consumer - Primary											31,035			32,636			-4.9	%
Retail Consumer - Additional											4,012			4,484			-10.5	%
Retail Business											22,754			23,295			-2.3	%
Retail											57,801			60,415			-4.3	%
Wholesale 5											3,530			5,724			-38.3	%
Coin 6											251			330			-23.9	%
Total Switched Access Lines (000)											61,582			66,469			-7.4	%
Net Switched Access Line Changes (000)		(1,289	)		19,382			-			(4,887	)		17,056			-
Total Broadband Connections (000) 3, 7											14,156			12,170			16.3	%
Net Broadband Connections Changes (000) 3		396			4,015			-90.1	%		1,986			5,249			-62.2	%
Video Connections (000) 4, 7											2,347			1,510			55.4	%
Net Video Connections Changes (000) 4		235			867			-72.9	%		837			997			-16.0	%

1	Licensed POPs numbers do not include Dobson.
2	In-region Wireline represents access lines served by AT&T's incumbent local exchange companies.
3	Broadband connections include DSL lines, U-verse high speed Internet access and satellite broadband.
4	Video connections include sales under agency agreements with EchoStar and DirecTV customers and U-verse connections.
5	Wholesale lines include 0.2 million lines purchased by AT&T Corp. at 12/31/07 and 1.3 million at 12/31/06.
6	Coin includes both retail and wholesale access lines.
7	Prior year amounts restated to conform to current period reporting methodology.