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									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.