Financial Data | ||||||||||||||||||||||||
AT&T Inc. | ||||||||||||||||||||||||
Consolidated Statements of Income | ||||||||||||||||||||||||
Dollars in millions except per share amounts | ||||||||||||||||||||||||
Unaudited | Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||
12/31/2008 | 12/31/2007 | % Ch | g | 12/31/2008 | 12/31/2007 | % Ch | g | |||||||||||||||||
Operating Revenues | ||||||||||||||||||||||||
Wireless service | $ | 11,523 | $ | 10,151 | 13.5 | % | $ | 44,249 | $ | 38,568 | 14.7 | % | ||||||||||||
Voice | 8,796 | 9,801 | -10.3 | % | 37,321 | 40,798 | -8.5 | % | ||||||||||||||||
Data | 6,202 | 5,925 | 4.7 | % | 24,372 | 23,206 | 5.0 | % | ||||||||||||||||
Directory | 1,302 | 1,389 | -6.3 | % | 5,416 | 4,806 | 12.7 | % | ||||||||||||||||
Other | 3,253 | 3,083 | 5.5 | % | 12,670 | 11,550 | 9.7 | % | ||||||||||||||||
Total Operating Revenues | 31,076 | 30,349 | 2.4 | % | 124,028 | 118,928 | 4.3 | % | ||||||||||||||||
Operating Expenses | ||||||||||||||||||||||||
Cost of services and sales (exclusive of | ||||||||||||||||||||||||
depreciation and amortization shown separately below) | 12,923 | 11,889 | 8.7 | % | 49,895 | 46,705 | 6.8 | % | ||||||||||||||||
Selling, general and administrative | 8,211 | 7,745 | 6.0 | % | 31,187 | 30,242 | 3.1 | % | ||||||||||||||||
Depreciation and amortization | 5,044 | 5,223 | -3.4 | % | 19,883 | 21,577 | -7.9 | % | ||||||||||||||||
Total Operating Expenses | 26,178 | 24,857 | 5.3 | % | 100,965 | 98,524 | 2.5 | % | ||||||||||||||||
Operating Income | 4,898 | 5,492 | -10.8 | % | 23,063 | 20,404 | 13.0 | % | ||||||||||||||||
Interest Expense | 813 | 868 | -6.3 | % | 3,390 | 3,507 | -3.3 | % | ||||||||||||||||
Equity in Net Income of Affiliates | 107 | 147 | -27.2 | % | 819 | 692 | 18.4 | % | ||||||||||||||||
Other Income (Expense) - Net | (498 | ) | 1 | - | (589 | ) | 615 | - | ||||||||||||||||
Income Before Income Taxes | 3,694 | 4,772 | -22.6 | % | 19,903 | 18,204 | 9.3 | % | ||||||||||||||||
Income Taxes | 1,290 | 1,636 | -21.1 | % | 7,036 | 6,253 | 12.5 | % | ||||||||||||||||
Net Income | $ | 2,404 | $ | 3,136 | -23.3 | % | $ | 12,867 | $ | 11,951 | 7.7 | % | ||||||||||||
Basic Earnings Per Share | $ | 0.41 | $ | 0.52 | -21.2 | % | $ | 2.17 | $ | 1.95 | 11.3 | % | ||||||||||||
Weighted Average Common | ||||||||||||||||||||||||
Shares Outstanding (000,000) | 5,893 | 6,054 | -2.7 | % | 5,927 | 6,127 | -3.3 | % | ||||||||||||||||
Diluted Earnings Per Share | $ | 0.41 | $ | 0.51 | -19.6 | % | $ | 2.16 | $ | 1.94 | 11.3 | % | ||||||||||||
Weighted Average Common | ||||||||||||||||||||||||
Shares Outstanding with Dilution (000,000) | 5,920 | 6,095 | -2.9 | % | 5,958 | 6,170 | -3.4 | % | ||||||||||||||||
Financial Data | ||||||||||||||||||||||||
AT&T Inc. | ||||||||||||||||||||||||
Statements of Segment Income | ||||||||||||||||||||||||
Dollars in millions | ||||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||
Wireless | 12/31/2008 | 12/31/2007 | % Ch | g | 12/31/2008 | 12/31/2007 | % Ch | g | ||||||||||||||||
Segment Operating Revenues | ||||||||||||||||||||||||
Service | $ | 11,541 | $ | 10,186 | 13.3 | % | $ | 44,410 | $ | 38,678 | 14.8 | % | ||||||||||||
Equipment | 1,318 | 1,169 | 12.7 | % | 4,925 | 4,006 | 22.9 | % | ||||||||||||||||
Total Segment Operating Revenues | 12,859 | 11,355 | 13.2 | % | 49,335 | 42,684 | 15.6 | % | ||||||||||||||||
Segment Operating Expenses | ||||||||||||||||||||||||
Cost of services and equipment sales | 4,817 | 4,301 | 12.0 | % | 18,078 | 15,991 | 13.1 | % | ||||||||||||||||
Selling, general and administrative | 3,914 | 3,458 | 13.2 | % | 14,403 | 12,594 | 14.4 | % | ||||||||||||||||
Depreciation and amortization | 1,443 | 1,669 | -13.5 | % | 5,770 | 7,079 | -18.5 | % | ||||||||||||||||
Total Segment Operating Expenses | 10,174 | 9,428 | 7.9 | % | 38,251 | 35,664 | 7.3 | % | ||||||||||||||||
Segment Operating Income | 2,685 | 1,927 | 39.3 | % | 11,084 | 7,020 | 57.9 | % | ||||||||||||||||
Equity in Net Income of Affiliates | 1 | 4 | -75.0 | % | 6 | 16 | -62.5 | % | ||||||||||||||||
Minority Interest | (70 | ) | (55 | ) | -27.3 | % | (256 | ) | (198 | ) | -29.3 | % | ||||||||||||
Segment Income | $ | 2,616 | $ | 1,876 | 39.4 | % | $ | 10,834 | $ | 6,838 | 58.4 | % | ||||||||||||
Wireline | ||||||||||||||||||||||||
Segment Operating Revenues | ||||||||||||||||||||||||
Voice | $ | 9,007 | $ | 10,011 | -10.0 | % | $ | 38,198 | $ | 41,630 | -8.2 | % | ||||||||||||
Data | 6,459 | 6,157 | 4.9 | % | 25,352 | 24,075 | 5.3 | % | ||||||||||||||||
Other | 1,606 | 1,489 | 7.9 | % | 6,304 | 5,878 | 7.2 | % | ||||||||||||||||
Total Segment Operating Revenues | 17,072 | 17,657 | -3.3 | % | 69,854 | 71,583 | -2.4 | % | ||||||||||||||||
Segment Operating Expenses | ||||||||||||||||||||||||
Cost of sales | 8,021 | 7,622 | 5.2 | % | 31,929 | 31,018 | 2.9 | % | ||||||||||||||||
Selling, general and administrative | 3,319 | 3,805 | -12.8 | % | 13,624 | 15,159 | -10.1 | % | ||||||||||||||||
Depreciation and amortization | 3,380 | 3,340 | 1.2 | % | 13,150 | 13,416 | -2.0 | % | ||||||||||||||||
Total Segment Operating Expenses | 14,720 | 14,767 | -0.3 | % | 58,703 | 59,593 | -1.5 | % | ||||||||||||||||
Segment Income | $ | 2,352 | $ | 2,890 | -18.6 | % | $ | 11,151 | $ | 11,990 | -7.0 | % | ||||||||||||
Advertising & Publishing | ||||||||||||||||||||||||
Segment Operating Revenues | $ | 1,328 | $ | 1,473 | -9.8 | % | $ | 5,502 | $ | 5,851 | -6.0 | % | ||||||||||||
Segment Operating Expenses | ||||||||||||||||||||||||
Cost of sales | 395 | 431 | -8.4 | % | 1,716 | 1,645 | 4.3 | % | ||||||||||||||||
Selling, general and administrative | 310 | 354 | -12.4 | % | 1,282 | 1,421 | -9.8 | % | ||||||||||||||||
Depreciation and amortization | 180 | 181 | -0.6 | % | 789 | 924 | -14.6 | % | ||||||||||||||||
Total Segment Operating Expenses | 885 | 966 | -8.4 | % | 3,787 | 3,990 | -5.1 | % | ||||||||||||||||
Segment Income | $ | 443 | $ | 507 | -12.6 | % | $ | 1,715 | $ | 1,861 | -7.8 | % | ||||||||||||
Other | ||||||||||||||||||||||||
Segment Operating Revenues | $ | 486 | $ | 571 | -14.9 | % | $ | 2,043 | $ | 2,229 | -8.3 | % | ||||||||||||
Segment Operating Expenses | 1,067 | 367 | - | 2,929 | 2,040 | 43.6 | % | |||||||||||||||||
Segment Operating Income(Loss) | (581 | ) | 204 | - | (886 | ) | 189 | - | ||||||||||||||||
Equity in Net Income of Affiliates | 106 | 143 | -25.9 | % | 813 | 676 | 20.3 | % | ||||||||||||||||
Segment Income (Loss) | $ | (475 | ) | $ | 347 | - | $ | (73 | ) | $ | 865 | - |
Financial Data | ||||||||
AT&T Inc. | ||||||||
Consolidated Balance Sheets | ||||||||
Dollars in millions except per share amounts | ||||||||
12/31/08 | 12/31/07 | |||||||
Unaudited | ||||||||
Assets | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 1,792 | $ | 1,970 | ||||
Accounts receivable - net of allowances for | ||||||||
uncollectibles of $1,270 and $1,364 | 16,047 | 16,185 | ||||||
Prepaid expenses | 1,538 | 1,524 | ||||||
Deferred income taxes | 1,014 | 2,044 | ||||||
Other current assets | 2,165 | 2,963 | ||||||
Total current assets | 22,556 | 24,686 | ||||||
Property, Plant and Equipment - Net | 99,088 | 95,890 | ||||||
Goodwill | 71,829 | 70,713 | ||||||
Licenses | 47,306 | 37,985 | ||||||
Customer Lists and Relationships - Net | 10,582 | 14,505 | ||||||
Other Intangible Assets - Net | 5,824 | 5,912 | ||||||
Investments in Equity Affiliates | 2,332 | 2,270 | ||||||
Postemployment Benefit | - | 17,291 | ||||||
Other Assets | 5,728 | 6,392 | ||||||
Total Assets | $ | 265,245 | $ | 275,644 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current Liabilities | ||||||||
Debt maturing within one year | $ | 14,119 | $ | 6,860 | ||||
Accounts payable and accrued liabilities | 20,032 | 21,399 | ||||||
Advanced billing and customer deposits | 3,849 | 3,571 | ||||||
Accrued taxes | 1,874 | 5,027 | ||||||
Dividends payable | 2,416 | 2,417 | ||||||
Total current liabilities | 42,290 | 39,274 | ||||||
Long-Term Debt | 60,872 | 57,255 | ||||||
Deferred Credits and Other Noncurrent Liabilities | ||||||||
Deferred income taxes | 19,196 | 24,939 | ||||||
Postemployment benefit obligation | 31,930 | 24,011 | ||||||
Other noncurrent liabilities | 14,610 | 14,798 | ||||||
Total deferred credits and other noncurrent liabilities | 65,736 | 63,748 | ||||||
Stockholders' Equity | ||||||||
Common shares issued ($1 par value) | 6,495 | 6,495 | ||||||
Capital in excess of par value | 91,728 | 91,638 | ||||||
Retained earnings | 36,591 | 33,297 | ||||||
Treasury shares (at cost) | (21,410 | ) | (15,683 | ) | ||||
Accumulated other comprehensive income (loss) | (17,057 | ) | (380 | ) | ||||
Total stockholders' equity | 96,347 | 115,367 | ||||||
Total Liabilities and Stockholders' Equity | $ | 265,245 | $ | 275,644 |
Financial Data | |||||||||||||
AT&T Inc. | |||||||||||||
Consolidated Statements of Cash Flows | |||||||||||||
Dollars in millions, increase (decrease) in cash and cash equivalents | |||||||||||||
Unaudited | Twelve Months Ended | ||||||||||||
12/31/08 | 12/31/07 | 12/31/06 | |||||||||||
Operating Activities | |||||||||||||
Net income | $ | 12,867 | 11,951 | $ | 7,356 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||
Depreciation and amortization | 19,883 | 21,577 | 9,907 | ||||||||||
Undistributed earnings from investments in equity affiliates | (654 | ) | (297 | ) | (1,946 | ) | |||||||
Provision for uncollectible accounts | 1,796 | 1,617 | 586 | ||||||||||
Deferred income tax expense (benefit) | 5,889 | (240 | ) | (87 | ) | ||||||||
Net (gain) loss from impairment and sale of investments | 517 | (11 | ) | (10 | ) | ||||||||
Gain on license exchange | - | (409 | ) | - | |||||||||
Changes in operating assets and liabilities: | |||||||||||||
Accounts receivable | (1,421 | ) | (1,491 | ) | 519 | ||||||||
Other current assets | 827 | (1,020 | ) | 30 | |||||||||
Accounts payable and accrued liabilities | (5,563 | ) | 672 | (2,213 | ) | ||||||||
Stock-based compensation tax benefit | (15 | ) | (173 | ) | (18 | ) | |||||||
Other - net | (470 | ) | 2,066 | 1,564 | |||||||||
Total adjustments | 20,789 | 22,291 | 8,332 | ||||||||||
Net Cash Provided by Operating Activities | 33,656 | 34,242 | 15,688 | ||||||||||
Investing Activities | |||||||||||||
Construction and capital expenditures | |||||||||||||
Capital expenditures | (19,676 | ) | (17,717 | ) | (8,320 | ) | |||||||
Interest during construction | (659 | ) | (171 | ) | (73 | ) | |||||||
Net Investments in affiliates | - | - | (1,104 | ) | |||||||||
Acquisitions, net of cash acquired | (10,972 | ) | (2,873 | ) | 368 | ||||||||
Dispositions | 1,615 | 1,594 | 756 | ||||||||||
Proceeds from sale of securities, net of investments | 68 | 455 | - | ||||||||||
Sale of other investments | 436 | - | - | ||||||||||
Other | 45 | 36 | 7 | ||||||||||
Net Cash Used in Investing Activities | (29,143 | ) | (18,676 | ) | (8,366 | ) | |||||||
Financing Activities | |||||||||||||
Net change in short-term borrowings with original maturities of three months or less | 2,017 | (3,411 | ) | 3,649 | |||||||||
Issuance of long-term debt | 12,416 | 11,367 | 1,491 | ||||||||||
Repayment of long-term debt | (4,010 | ) | (6,772 | ) | (4,242 | ) | |||||||
Purchase of treasury shares | (6,077 | ) | (10,390 | ) | (2,678 | ) | |||||||
Issuance of treasury shares | 319 | 1,986 | 589 | ||||||||||
Dividends paid | (9,507 | ) | (8,743 | ) | (5,153 | ) | |||||||
Stock-based compensation tax benefit | 15 | 173 | 18 | ||||||||||
Other | 136 | (224 | ) | 198 | |||||||||
Net Cash Used in Financing Activities | (4,691 | ) | (16,014 | ) | (6,128 | ) | |||||||
Net increase (decrease) in cash and cash equivalents | (178 | ) | (448 | ) | 1,194 | ||||||||
Cash and cash equivalents beginning of year | 1,970 | 2,418 | 1,224 | ||||||||||
Cash and Cash Equivalents End of Year | $ | 1,792 | $ | 1,970 | $ | 2,418 |
Financial Data | ||||||||||||||||||||||||
AT&T Inc. | ||||||||||||||||||||||||
Supplementary Operating and Financial Data | ||||||||||||||||||||||||
Dollars in millions except per share amounts | ||||||||||||||||||||||||
Unaudited | Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||
12/31/2008 | 12/31/2007 | % Ch | g | 12/31/2008 | 12/31/2007 | % Ch | g | |||||||||||||||||
Wireless | ||||||||||||||||||||||||
Wireless Customers (000) | 77,009 | 70,052 | 9.9 | % | ||||||||||||||||||||
Net Customer Additions (000) | 2,095 | 2,675 | -21.7 | % | 6,699 | 7,315 | -8.4 | % | ||||||||||||||||
M&A Activity, Partitioned Customers and Other Adjs. (000) | 43 | 1,711 | -97.5 | % | 258 | 1,775 | -85.5 | % | ||||||||||||||||
Postpaid Customers (000) | 60,098 | 55,310 | 8.7 | % | ||||||||||||||||||||
Net Postpaid Customer Additions (000) | 1,342 | 1,178 | 13.9 | % | 4,634 | 3,982 | 16.4 | % | ||||||||||||||||
Postpaid Churn | 1.2 | % | 1.2 | % | - | 1.2 | % | 1.3 | % | -10 B | P | |||||||||||||
Licensed POPs (000,000) | 304 | 299 | 1.7 | % | ||||||||||||||||||||
In-Region Wireline 1 | ||||||||||||||||||||||||
Total Consumer Revenue Connections (000) 7 | ||||||||||||||||||||||||
Retail Consumer Voice Connections 2 | 27,479 | 31,005 | -11.4 | % | ||||||||||||||||||||
Retail Consumer Additional Voice Connections 2 | 3,359 | 4,004 | -16.1 | % | ||||||||||||||||||||
Consumer Wired Broadband Connections 3 | 12,972 | 12,082 | 7.4 | % | ||||||||||||||||||||
Video Connections: 4 | ||||||||||||||||||||||||
Satellite Connections | 2,190 | 2,116 | 3.5 | % | ||||||||||||||||||||
U-verse Video Connections | 1,045 | 231 | - | |||||||||||||||||||||
Total Consumer Revenue Connections (000) | 47,045 | 49,438 | -4.8 | % | ||||||||||||||||||||
Net Consumer Revenue Connection Changes (000) | (503 | ) | (160 | ) | - | (2,393 | ) | 577 | - | |||||||||||||||
Broadband and Video | ||||||||||||||||||||||||
Total Broadband Connections (000) 5, 7 | 16,322 | 14,802 | 10.3 | % | ||||||||||||||||||||
Net Broadband Connection Changes (000) 5, 7 | 357 | 525 | -32.0 | % | 1,520 | 2,632 | -42.2 | % | ||||||||||||||||
Total Video Connections (000) 4 | 3,235 | 2,347 | 37.8 | % | ||||||||||||||||||||
Net Video Connection Changes (000) 4 | 272 | 235 | 15.7 | % | 888 | 837 | 6.1 | % | ||||||||||||||||
AT&T Inc. | ||||||||||||||||||||||||
Construction and capital expenditures | ||||||||||||||||||||||||
Capital expenditures | $ | 5,288 | $ | 5,593 | -5.5 | % | $ | 19,676 | $ | 17,717 | 11.1 | % | ||||||||||||
Interest during construction | $ | 204 | $ | 46 | - | $ | 659 | $ | 171 | - | ||||||||||||||
Dividends Declared per Share | $ | 0.4100 | $ | 0.4000 | 2.5 | % | $ | 1.6100 | $ | 1.4650 | 9.9 | % | ||||||||||||
End of Period Common Shares Outstanding (000,000) | 5,893 | 6,044 | -2.5 | % | ||||||||||||||||||||
Debt Ratio 6 | 43.8 | % | 35.7 | % | 810 B | P | ||||||||||||||||||
Total Employees | 302,660 | 309,050 | -2.1 | % | ||||||||||||||||||||
1 | In-region wireline represents access lines served by AT&T's incumbent local exchange companies. |
2 | Includes consumer U-verse Voice over IP connections. |
3 | Wireline consumer 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 | Total broadband connections include DSL lines, U-verse high speed Internet access, satellite broadband and 3G LaptopConnect cards. |
6 | Total long-term debt plus debt maturing within one year divided by total debt plus total stockholders' equity. |
7 | Prior year amounts restated to conform to current period reporting methodology. |
Note: For the end of year 2008, total switched access lines were 55,610, retail business switched access lines totaled 21,826, and wholesale and coin switched access lines totaled 3,170. |