Financial Data | ||||||||||||||||||||||||
AT&T Inc. | ||||||||||||||||||||||||
Consolidated Statements of Income | ||||||||||||||||||||||||
Dollars in millions except per share amounts | ||||||||||||||||||||||||
Unaudited | Three Months Ended | Six Months Ended | ||||||||||||||||||||||
6/30/2009 | 6/30/2008 | % Chg | 6/30/2009 | 6/30/2008 | % Chg | |||||||||||||||||||
Operating Revenues | ||||||||||||||||||||||||
Wireless service | $ | 11,960 | $ | 10,894 | 9.8 | % | $ | 23,606 | $ | 21,499 | 9.8 | % | ||||||||||||
Voice | 8,256 | 9,519 | -13.3 | % | 16,762 | 19,212 | -12.8 | % | ||||||||||||||||
Data | 6,307 | 6,054 | 4.2 | % | 12,557 | 12,026 | 4.4 | % | ||||||||||||||||
Directory | 1,211 | 1,383 | -12.4 | % | 2,460 | 2,781 | -11.5 | % | ||||||||||||||||
Other | 3,000 | 3,016 | -0.5 | % | 5,920 | 6,092 | -2.8 | % | ||||||||||||||||
Total Operating Revenues | 30,734 | 30,866 | -0.4 | % | 61,305 | 61,610 | -0.5 | % | ||||||||||||||||
Operating Expenses | ||||||||||||||||||||||||
Cost of services and sales (exclusive of | ||||||||||||||||||||||||
depreciation and amortization shown separately below) | 12,478 | 11,897 | 4.9 | % | 24,720 | 23,892 | 3.5 | % | ||||||||||||||||
Selling, general and administrative | 7,847 | 7,444 | 5.4 | % | 15,553 | 15,310 | 1.6 | % | ||||||||||||||||
Depreciation and amortization | 4,903 | 4,958 | -1.1 | % | 9,789 | 9,861 | -0.7 | % | ||||||||||||||||
Total Operating Expenses | 25,228 | 24,299 | 3.8 | % | 50,062 | 49,063 | 2.0 | % | ||||||||||||||||
Operating Income | 5,506 | 6,567 | -16.2 | % | 11,243 | 12,547 | -10.4 | % | ||||||||||||||||
Interest Expense | 879 | 854 | 2.9 | % | 1,728 | 1,719 | 0.5 | % | ||||||||||||||||
Equity in Net Income of Affiliates | 231 | 212 | 9.0 | % | 368 | 455 | -19.1 | % | ||||||||||||||||
Other Income (Expense) - Net | 31 | 29 | 6.9 | % | 16 | 120 | -86.7 | % | ||||||||||||||||
Income Before Income Taxes | 4,889 | 5,954 | -17.9 | % | 9,899 | 11,403 | -13.2 | % | ||||||||||||||||
Income Taxes | 1,613 | 2,111 | -23.6 | % | 3,422 | 4,041 | -15.3 | % | ||||||||||||||||
Net Income | 3,276 | 3,843 | -14.8 | % | 6,477 | 7,362 | -12.0 | % | ||||||||||||||||
Less: Net Income Attributable to Noncontrolling Interest | (78 | ) | (71 | ) | -9.9 | % | (153 | ) | (129 | ) | -18.6 | % | ||||||||||||
Net Income Attributable to AT&T | $ | 3,198 | $ | 3,772 | -15.2 | % | $ | 6,324 | $ | 7,233 | -12.6 | % | ||||||||||||
Basic Earnings Per Share Attributable to AT&T | $ | 0.54 | $ | 0.64 | -15.6 | % | $ | 1.07 | $ | 1.21 | -11.6 | % | ||||||||||||
Weighted Average Common | ||||||||||||||||||||||||
Shares Outstanding (000,000) | 5,900 | 5,926 | -0.4 | % | 5,898 | 5,962 | -1.1 | % | ||||||||||||||||
Diluted Earnings Per Share Attributable to AT&T | $ | 0.54 | $ | 0.63 | -14.3 | % | $ | 1.07 | $ | 1.21 | -11.6 | % | ||||||||||||
Weighted Average Common | ||||||||||||||||||||||||
Shares Outstanding with Dilution (000,000) | 5,923 | 5,962 | -0.7 | % | 5,923 | 5,997 | -1.2 | % | ||||||||||||||||
Financial Data | ||||||||||||||||||||||||
AT&T Inc. | ||||||||||||||||||||||||
Statements of Segment Income | ||||||||||||||||||||||||
Dollars in millions | ||||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
Wireless | 6/30/2009 | 6/30/2008 | % Chg | 6/30/2009 | 6/30/2008 | % Chg | ||||||||||||||||||
Segment Operating Revenues | ||||||||||||||||||||||||
Service | $ | 11,983 | $ | 10,951 | 9.4 | % | $ | 23,651 | $ | 21,596 | 9.5 | % | ||||||||||||
Equipment | 1,262 | 1,082 | 16.6 | % | 2,454 | 2,262 | 8.5 | % | ||||||||||||||||
Total Segment Operating Revenues | 13,245 | 12,033 | 10.1 | % | 26,105 | 23,858 | 9.4 | % | ||||||||||||||||
Segment Operating Expenses | ||||||||||||||||||||||||
Operations and support | 8,658 | 7,523 | 15.1 | % | 16,743 | 14,912 | 12.3 | % | ||||||||||||||||
Depreciation and amortization | 1,436 | 1,446 | -0.7 | % | 2,870 | 2,926 | -1.9 | % | ||||||||||||||||
Total Segment Operating Expenses | 10,094 | 8,969 | 12.5 | % | 19,613 | 17,838 | 10.0 | % | ||||||||||||||||
Segment Operating Income | 3,151 | 3,064 | 2.8 | % | 6,492 | 6,020 | 7.8 | % | ||||||||||||||||
Equity in Net Income of Affiliates | - | 3 | - | - | 5 | - | ||||||||||||||||||
Segment Income | $ | 3,151 | $ | 3,067 | 2.7 | % | $ | 6,492 | $ | 6,025 | 7.8 | % | ||||||||||||
Segment Operating Income Margin | 23.8 | % | 25.5 | % | 24.9 | % | 25.2 | % | ||||||||||||||||
Wireline | ||||||||||||||||||||||||
Segment Operating Revenues | ||||||||||||||||||||||||
Voice | $ | 8,449 | $ | 9,757 | -13.4 | % | $ | 17,157 | $ | 19,676 | -12.8 | % | ||||||||||||
Data | 6,617 | 6,287 | 5.2 | % | 13,153 | 12,492 | 5.3 | % | ||||||||||||||||
Other | 1,460 | 1,564 | -6.6 | % | 2,894 | 3,064 | -5.5 | % | ||||||||||||||||
Total Segment Operating Revenues | 16,526 | 17,608 | -6.1 | % | 33,204 | 35,232 | -5.8 | % | ||||||||||||||||
Segment Operating Expenses | ||||||||||||||||||||||||
Operations and support | 11,265 | 11,192 | 0.7 | % | 22,562 | 22,685 | -0.5 | % | ||||||||||||||||
Depreciation and amortization | 3,258 | 3,281 | -0.7 | % | 6,498 | 6,462 | 0.6 | % | ||||||||||||||||
Total Segment Operating Expenses | 14,523 | 14,473 | 0.3 | % | 29,060 | 29,147 | -0.3 | % | ||||||||||||||||
Segment Operating Income | 2,003 | 3,135 | -36.1 | % | 4,144 | 6,085 | -31.9 | % | ||||||||||||||||
Equity in Net Income of Affiliates | 4 | 3 | 33.3 | % | 8 | 9 | -11.1 | % | ||||||||||||||||
Segment Income | $ | 2,007 | $ | 3,138 | -36.0 | % | $ | 4,152 | $ | 6,094 | -31.9 | % | ||||||||||||
Segment Operating Income Margin | 12.1 | % | 17.8 | % | 12.5 | % | 17.3 | % | ||||||||||||||||
Advertising Solutions | ||||||||||||||||||||||||
Segment Operating Revenues | $ | 1,231 | $ | 1,407 | -12.5 | % | $ | 2,500 | $ | 2,824 | -11.5 | % | ||||||||||||
Segment Operating Expenses | ||||||||||||||||||||||||
Operations and support | 751 | 771 | -2.6 | % | 1,500 | 1,558 | -3.7 | % | ||||||||||||||||
Depreciation and amortization | 166 | 203 | -18.2 | % | 342 | 415 | -17.6 | % | ||||||||||||||||
Total Segment Operating Expenses | 917 | 974 | -5.9 | % | 1,842 | 1,973 | -6.6 | % | ||||||||||||||||
Segment Income | $ | 314 | $ | 433 | -27.5 | % | $ | 658 | $ | 851 | -22.7 | % | ||||||||||||
Segment Income Margin | 25.5 | % | 30.8 | % | 26.3 | % | 30.1 | % | ||||||||||||||||
Other | ||||||||||||||||||||||||
Segment Operating Revenues | $ | 424 | $ | 512 | -17.2 | % | $ | 861 | $ | 1,056 | -18.5 | % | ||||||||||||
Segment Operating Expenses | 386 | 577 | -33.1 | % | 912 | 1,465 | -37.7 | % | ||||||||||||||||
Segment Operating Income (Loss) | 38 | (65 | ) | - | (51 | ) | (409 | ) | - | |||||||||||||||
Equity in Net Income of Affiliates | 226 | 206 | 9.7 | % | 359 | 441 | -18.6 | % | ||||||||||||||||
Segment Income(Loss) | $ | 264 | $ | 141 | 87.2 | % | $ | 308 | $ | 32 | - |
Financial Data | ||||||||
AT&T Inc. | ||||||||
Consolidated Balance Sheets | ||||||||
Dollars in millions except per share amounts | ||||||||
6/30/09 | 12/31/08 | |||||||
Unaudited | ||||||||
Assets | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 7,348 | $ | 1,792 | ||||
Accounts receivable - net of allowances for | ||||||||
uncollectibles of $1,269 and $1,270 | 14,846 | 16,047 | ||||||
Prepaid expenses | 1,786 | 1,538 | ||||||
Deferred income taxes | 964 | 1,014 | ||||||
Other current assets | 1,996 | 2,165 | ||||||
Total current assets | 26,940 | 22,556 | ||||||
Property, Plant and Equipment - Net | 98,229 | 99,088 | ||||||
Goodwill | 71,691 | 71,829 | ||||||
Licenses | 47,674 | 47,306 | ||||||
Customer Lists and Relationships - Net | 8,682 | 10,582 | ||||||
Other Intangible Assets - Net | 5,773 | 5,824 | ||||||
Investments in Equity Affiliates | 2,749 | 2,332 | ||||||
Other Assets | 6,180 | 5,728 | ||||||
Total Assets | $ | 267,918 | $ | 265,245 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current Liabilities | ||||||||
Debt maturing within one year | $ | 10,155 | $ | 14,119 | ||||
Accounts payable and accrued liabilities | 18,046 | 20,032 | ||||||
Advanced billing and customer deposits | 3,932 | 3,849 | ||||||
Accrued taxes | 1,667 | 1,874 | ||||||
Dividends payable | 2,419 | 2,416 | ||||||
Total current liabilities | 36,219 | 42,290 | ||||||
Long-Term Debt | 66,565 | 60,872 | ||||||
Deferred Credits and Other Noncurrent Liabilities | ||||||||
Deferred income taxes | 20,354 | 19,196 | ||||||
Postemployment benefit obligation | 31,985 | 31,930 | ||||||
Other noncurrent liabilities | 13,783 | 14,207 | ||||||
Total deferred credits and other noncurrent liabilities | 66,122 | 65,333 | ||||||
Stockholders' Equity | ||||||||
Common shares issued ($1 par value) | 6,495 | 6,495 | ||||||
Capital in excess of par value | 91,637 | 91,728 | ||||||
Retained earnings | 38,069 | 36,591 | ||||||
Treasury shares (at cost) | (21,284 | ) | (21,410 | ) | ||||
Accumulated other comprehensive income (loss) | (16,308 | ) | (17,057 | ) | ||||
Noncontrolling Interest | 403 | 403 | ||||||
Total stockholders' equity | 99,012 | 96,750 | ||||||
Total Liabilities and Stockholders' Equity | $ | 267,918 | $ | 265,245 |
Financial Data | ||||||||
AT&T Inc. | ||||||||
Consolidated Statements of Cash Flows | ||||||||
Dollars in millions, increase (decrease) in cash and cash equivalents | ||||||||
Unaudited | Six Months Ended | |||||||
6/30/09 | 6/30/08 | |||||||
Operating Activities | ||||||||
Net income | $ | 6,477 | $ | 7,362 | ||||
Adjustments to reconcile net income to | ||||||||
net cash provided by operating activities: | ||||||||
Depreciation and amortization | 9,789 | 9,861 | ||||||
Provision for uncollectible accounts | 976 | 860 | ||||||
Deferred income tax expense | 744 | 1,384 | ||||||
Net (gain) loss from impairment and sale of investments | 74 | - | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 226 | (776 | ) | |||||
Other current assets | (105 | ) | 274 | |||||
Accounts payable and accrued liabilities | (887 | ) | (5,117 | ) | ||||
Stock-based compensation tax benefit | - | (14 | ) | |||||
Other - net | (1,492 | ) | (329 | ) | ||||
Total adjustments | 9,325 | 6,143 | ||||||
Net Cash Provided by Operating Activities | 15,802 | 13,505 | ||||||
Investing Activities | ||||||||
Construction and capital expenditures | ||||||||
Capital expenditures | (7,036 | ) | (9,320 | ) | ||||
Interest during construction | (368 | ) | (257 | ) | ||||
Acquisitions, net of cash acquired | (55 | ) | (10,087 | ) | ||||
Dispositions | 199 | 623 | ||||||
Proceeds from sale of securities, net of investments | (21 | ) | (73 | ) | ||||
Other | 38 | 41 | ||||||
Net Cash Used in Investing Activities | (7,243 | ) | (19,073 | ) | ||||
Financing Activities | ||||||||
Net change in short-term borrowings with | ||||||||
original maturities of three months or less | (3,915 | ) | 6,590 | |||||
Issuance of long-term debt | 8,161 | 10,924 | ||||||
Repayment of long-term debt | (2,037 | ) | (1,605 | ) | ||||
Purchase of treasury shares | - | (6,077 | ) | |||||
Issuance of treasury shares | 4 | 310 | ||||||
Dividends paid | (4,834 | ) | (4,802 | ) | ||||
Stock-based compensation tax benefit | - | 14 | ||||||
Other | (382 | ) | (125 | ) | ||||
Net Cash Provided by (Used in) Financing Activities | (3,003 | ) | 5,229 | |||||
Net increase (decrease) in cash and cash equivalents | 5,556 | (339 | ) | |||||
Cash and cash equivalents beginning of year | 1,792 | 1,970 | ||||||
Cash and Cash Equivalents End of Period | $ | 7,348 | $ | 1,631 |
Financial Data | ||||||||||||||||||||||||
AT&T Inc. | ||||||||||||||||||||||||
Supplementary Operating and Financial Data | ||||||||||||||||||||||||
Dollars in millions except per share amounts | ||||||||||||||||||||||||
Unaudited | Three Months Ended | Six Months Ended | ||||||||||||||||||||||
6/30/2009 | 6/30/2008 | % Chg | 6/30/2009 | 6/30/2008 | % Chg | |||||||||||||||||||
Wireless | ||||||||||||||||||||||||
Wireless Customers (000) | 79,600 | 72,882 | 9.2 | % | ||||||||||||||||||||
Net Customer Additions (000) | 1,368 | 1,333 | 2.6 | % | 2,591 | 2,628 | -1.4 | % | ||||||||||||||||
M&A Activity, Partitioned Customers and Other Adjs. (000) | - | 182 | - | 202 | ||||||||||||||||||||
Postpaid Customers (000) | 62,096 | 57,043 | 8.9 | % | ||||||||||||||||||||
Net Postpaid Customer Additions (000) | 1,153 | 894 | 29.0 | % | 2,028 | 1,599 | 26.8 | % | ||||||||||||||||
Postpaid Churn | 1.09 | % | 1.10 | % | -1 BP | 1.14 | % | 1.17 | % | -3 BP | ||||||||||||||
Licensed POPs (000,000) | 306 | 304 | 0.7 | % | ||||||||||||||||||||
In-Region Wireline 1 | ||||||||||||||||||||||||
Total Consumer Revenue Connections (000) | ||||||||||||||||||||||||
Retail Consumer Voice Connections 2 | 26,008 | 29,349 | -11.4 | % | ||||||||||||||||||||
Retail Consumer Additional Voice Connections 2 | 3,040 | 3,702 | -17.9 | % | ||||||||||||||||||||
Consumer Wired Broadband Connections 3 | 13,454 | 12,581 | 6.9 | % | ||||||||||||||||||||
Video Connections: 4 | ||||||||||||||||||||||||
Satellite Connections | 2,210 | 2,235 | -1.1 | % | ||||||||||||||||||||
U-verse Video Connections | 1,577 | 549 | ||||||||||||||||||||||
Total Consumer Revenue Connections (000) | 46,289 | 48,416 | -4.4 | % | ||||||||||||||||||||
Net Consumer Revenue Connection Changes (000) | (558 | ) | (924 | ) | (754 | ) | (1,022 | ) | ||||||||||||||||
Broadband and Video | ||||||||||||||||||||||||
Total Broadband Connections (000) 5 | 16,945 | 15,631 | 8.4 | % | ||||||||||||||||||||
Net Broadband Connection Changes (000) 5 | 209 | 212 | -1.4 | % | 680 | 829 | -18.0 | % | ||||||||||||||||
Total Video Connections (000) 4 | 3,787 | 2,784 | 36.0 | % | ||||||||||||||||||||
Net Video Connection Changes (000) 4 | 253 | 173 | 46.2 | % | 552 | 437 | 26.3 | % | ||||||||||||||||
AT&T Inc. | ||||||||||||||||||||||||
Construction and capital expenditures | ||||||||||||||||||||||||
Capital expenditures | $ | 3,863 | $ | 5,142 | -24.9 | % | $ | 7,036 | $ | 9,320 | -24.5 | % | ||||||||||||
Interest during construction | $ | 183 | $ | 187 | $ | 368 | $ | 257 | 43.2 | % | ||||||||||||||
Dividends Declared per Share | $ | 0.4100 | $ | 0.4000 | 2.5 | % | $ | 0.8200 | $ | 0.8000 | 2.5 | % | ||||||||||||
End of Period Common Shares Outstanding (000,000) | 5,900 | 5,892 | 0.1 | % | ||||||||||||||||||||
Debt Ratio 6,7 | 43.7 | % | 41.6 | % | 210 BP | |||||||||||||||||||
Total Employees | 288,660 | 307,550 | -6.1 | % | ||||||||||||||||||||
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 | Consumer wired 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 2Q09, total switched access lines were 52,379, retail business switched access lines totaled 20,940, and wholesale and coin switched access lines totaled 2,961. |
Financial Data | ||||||||||||||||||||
AT&T Inc. | ||||||||||||||||||||
Non-GAAP Wireless Reconciliation | ||||||||||||||||||||
Wireless Segment OIBDA | ||||||||||||||||||||
AT&T Inc. | ||||||||||||||||||||
Dollars in Millions | ||||||||||||||||||||
Unaudited | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
6/30/2008 | 9/30/2008 | 12/31/2008 | 3/31/2009 | 6/30/2009 | ||||||||||||||||
Service Revenues | $ | 10,951 | $ | 11,273 | $ | 11,541 | $ | 11,668 | $ | 11,983 | ||||||||||
Equipment Revenues | 1,082 | 1,345 | 1,318 | 1,192 | 1,262 | |||||||||||||||
Total Operating Revenues | 12,033 | 12,618 | 12,859 | 12,860 | 13,245 | |||||||||||||||
Operating Expenses | ||||||||||||||||||||
Operations and support | 7,523 | 8,838 | 8,731 | 8,085 | 8,658 | |||||||||||||||
Depreciation and amortization | 1,446 | 1,401 | 1,443 | 1,434 | 1,436 | |||||||||||||||
Total Operating Expenses | 8,969 | 10,239 | 10,174 | 9,519 | 10,094 | |||||||||||||||
Operating Income | 3,064 | 2,379 | 2,685 | 3,341 | 3,151 | |||||||||||||||
Plus: Depreciation and amortization | 1,446 | 1,401 | 1,443 | 1,434 | 1,436 | |||||||||||||||
OIBDA | 4,510 | 3,780 | 4,128 | 4,775 | 4,587 | |||||||||||||||
OIBDA as a % of Service Revenue | 41.2 | % | 33.5 | % | 35.8 | % | 40.9 | % | 38.3 | % | ||||||||||
OIBDA is defined as operating income (loss) before depreciation and amortization. OIBDA differs from segment operating income (loss), as calculated in accordance with generally accepted accounting principles (GAAP), in that it excludes depreciation and amortization. OIBDA does not give effect to cash used for debt service requirements and thus does not reflect available funds for distributions, reinvestment or other discretionary uses. OIBDA is not presented as an alternative measure of operating results or cash flows from operations, as determined in accordance with GAAP. Our calculation of OIBDA, as presented, may differ from similarly titled measures reported by other companies.
Financial Data | |||||
AT&T Inc. | |||||
Non-GAAP Financial Reconciliations | |||||
Free Cash Flow | |||||
AT&T Inc. | |||||
Dollars in Millions | |||||
Unaudited | |||||
June 30, 2009 | Three Months Ended | Six Months Ended | |||
Net cash provided by operating activities | $ | 7,887 | $ 15,802 | ||
Less: Construction and capital expenditures | (4,046) | (7,404) | |||
Free Cash Flow | $ | 3,841 | $ 8,398 |
Free cash flow is defined as cash from operations minus capital expenditures. We believe these metrics provide useful information to our investors because management regularly reviews free cash flow as an important indicator of how much cash is generated by normal business operations, including capital expenditures, and makes decisions based on it. Management also views free cash flow as a measure of cash available to pay debt and return cash to shareowners.