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									Nine Months Ended
	9/30/2009			9/30/2008			% Chg			9/30/2009			9/30/2008			% Chg
Operating Revenues
Wireless service	$	12,372		$	11,227			10.2	%	$	35,978		$	32,726			9.9	%
Voice		7,940			9,313			-14.7	%		24,702			28,525			-13.4	%
Data		6,424			6,144			4.6	%		18,981			18,170			4.5	%
Directory		1,162			1,333			-12.8	%		3,622			4,114			-12.0	%
Other		2,957			3,325			-11.1	%		8,877			9,417			-5.7	%
Total Operating Revenues		30,855			31,342			-1.6	%		92,160			92,952			-0.9	%
Operating Expenses
Cost of services and sales (exclusive of
depreciation and amortization shown separately below)		12,885			13,022			-1.1	%		37,605			36,914			1.9	%
Selling, general and administrative		7,672			7,724			-0.7	%		23,225			23,034			0.8	%
Depreciation and amortization		4,910			4,978			-1.4	%		14,699			14,839			-0.9	%
Total Operating Expenses		25,467			25,724			-1.0	%		75,529			74,787			1.0	%
Operating Income		5,388			5,618			-4.1	%		16,631			18,165			-8.4	%
Interest Expense		853			858			-0.6	%		2,581			2,577			0.2	%
Equity in Net Income of Affiliates		181			257			-29.6	%		549			712			-22.9	%
Other Income (Expense) - Net		27			(23	)		-			43			97			-55.7	%
Income Before Income Taxes		4,743			4,994			-5.0	%		14,642			16,397			-10.7	%
Income Taxes		1,468			1,705			-13.9	%		4,890			5,746			-14.9	%
Net Income		3,275			3,289			-0.4	%		9,752			10,651			-8.4	%
Less: Net Income Attributable to Noncontrolling Interest		(83	)		(59	)		-40.7	%		(236	)		(188	)		-25.5	%
Net Income Attributable to AT&T	$	3,192		$	3,230			-1.2	%	$	9,516		$	10,463			-9.1	%
Basic Earnings Per Share Attributable to AT&T	$	0.54		$	0.55			-1.8	%	$	1.61		$	1.76			-8.5	%
Weighted Average Common
Shares Outstanding (000,000)		5,901			5,893			0.1	%		5,899			5,938			-0.7	%
Diluted Earnings Per Share Attributable to AT&T	$	0.54		$	0.55			-1.8	%	$	1.61		$	1.75			-8.0	%
Weighted Average Common
Shares Outstanding with Dilution (000,000)		5,922			5,921			0.0	%		5,922			5,971			-0.8	%

Financial Data
AT&T Inc.
Statements of Segment Income
Dollars in millions
Unaudited
	Three Months Ended									Nine Months Ended
Wireless	9/30/2009			9/30/2008			% Chg			9/30/2009			9/30/2008			% Chg
Segment Operating Revenues
Service	$	12,399		$	11,273			10.0	%	$	36,050		$	32,869			9.7	%
Equipment		1,255			1,345			-6.7	%		3,709			3,607			2.8	%
Total Segment Operating Revenues		13,654			12,618			8.2	%		39,759			36,476			9.0	%
Segment Operating Expenses
Operations and support		8,877			8,838			0.4	%		25,620			23,750			7.9	%
Depreciation and amortization		1,418			1,401			1.2	%		4,288			4,327			-0.9	%
Total Segment Operating Expenses		10,295			10,239			0.5	%		29,908			28,077			6.5	%
Segment Operating Income		3,359			2,379			41.2	%		9,851			8,399			17.3	%
Equity in Net Income of Affiliates		-			-			-			-			5			-
Segment Income	$	3,359		$	2,379			41.2	%	$	9,851		$	8,404			17.2	%
Segment Operating Income Margin		24.6	%		18.9	%					24.8	%		23.0	%
Wireline
Segment Operating Revenues
Voice	$	8,132		$	9,515			-14.5	%	$	25,289		$	29,191			-13.4	%
Data		6,747			6,401			5.4	%		19,900			18,893			5.3	%
Other		1,425			1,634			-12.8	%		4,319			4,698			-8.1	%
Total Segment Operating Revenues		16,304			17,550			-7.1	%		49,508			52,782			-6.2	%
Segment Operating Expenses
Operations and support		11,097			11,456			-3.1	%		33,659			34,141			-1.4	%
Depreciation and amortization		3,289			3,352			-1.9	%		9,787			9,814			-0.3	%
Total Segment Operating Expenses		14,386			14,808			-2.8	%		43,446			43,955			-1.2	%
Segment Operating Income		1,918			2,742			-30.1	%		6,062			8,827			-31.3	%
Equity in Net Income of Affiliates		9			9			0.0	%		17			18			-5.6	%
Segment Income	$	1,927		$	2,751			-30.0	%	$	6,079		$	8,845			-31.3	%
Segment Operating Income Margin		11.8	%		15.6	%					12.2	%		16.7	%
Advertising Solutions
Segment Operating Revenues	$	1,180		$	1,350			-12.6	%	$	3,680		$	4,174			-11.8	%
Segment Operating Expenses
Operations and support		721			735			-1.9	%		2,221			2,293			-3.1	%
Depreciation and amortization		158			194			-18.6	%		500			609			-17.9	%
Total Segment Operating Expenses		879			929			-5.4	%		2,721			2,902			-6.2	%
Segment Income	$	301		$	421			-28.5	%	$	959		$	1,272			-24.6	%
Segment Income Margin		25.5	%		31.2	%					26.1	%		30.5	%
Other
Segment Operating Revenues	$	427		$	501			-14.8	%	$	1,288		$	1,557			-17.3	%
Segment Operating Expenses		616			425			44.9	%		1,528			1,890			-19.2	%
Segment Operating Income (Loss)		(189	)		76			-			(240	)		(333	)		27.9	%
Equity in Net Income of Affiliates		172			248			-30.6	%		531			689			-22.9	%
Segment Income(Loss)	$	(17	)	$	324			-		$	291		$	356			-18.3	%

Financial Data
AT&T Inc.
Consolidated Balance Sheets
Dollars in millions except per share amounts
	9/30/09			12/31/08
	Unaudited
Assets
Current Assets
Cash and cash equivalents	$	6,167		$	1,792
Accounts receivable - net of allowances for
uncollectibles of $1,345 and $1,270		14,796			16,047
Prepaid expenses		1,791			1,538
Deferred income taxes		991			1,014
Other current assets		2,176			2,165
Total current assets		25,921			22,556
Property, Plant and Equipment - Net		98,321			99,088
Goodwill		71,727			71,829
Licenses		47,946			47,306
Customer Lists and Relationships - Net		7,814			10,582
Other Intangible Assets - Net		5,656			5,824
Investments in Equity Affiliates		2,813			2,332
Other Assets		6,370			5,728
Total Assets	$	266,568		$	265,245
Liabilities and Stockholders' Equity
Current Liabilities
Debt maturing within one year	$	6,755		$	14,119
Accounts payable and accrued liabilities		18,093			20,032
Advanced billing and customer deposits		4,036			3,849
Accrued taxes		1,965			1,874
Dividends payable		2,419			2,416
Total current liabilities		33,268			42,290
Long-Term Debt		65,909			60,872
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes		22,279			19,196
Postemployment benefit obligation		31,750			31,930
Other noncurrent liabilities		13,361			14,207
Total deferred credits and other noncurrent liabilities		67,390			65,333
Stockholders' Equity
Common shares issued ($1 par value)		6,495			6,495
Capital in excess of par value		91,678			91,728
Retained earnings		38,841			36,591
Treasury shares (at cost)		(21,280	)		(21,410	)
Accumulated other comprehensive income (loss)		(16,161	)		(17,057	)
Noncontrolling Interest		428			403
Total stockholders' equity		100,001			96,750
Total Liabilities and Stockholders' Equity	$	266,568		$	265,245

Financial Data
AT&T Inc.
Consolidated Statements of Cash Flows
Dollars in millions, increase (decrease) in cash and cash equivalents
Unaudited	Nine Months Ended
	9/30/09			9/30/08
Operating Activities
Net income	$	9,752		$	10,651
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization		14,699			14,839
Provision for uncollectible accounts		1,384			1,297
Deferred income tax expense		2,574			4,063
Net (gain) loss from impairment on sale of investments		89			(2	)
Changes in operating assets and liabilities:
Accounts receivable		(133	)		(1,597	)
Other current assets		(288	)		616
Accounts payable and accrued liabilities		(361	)		(5,958	)
Stock-based compensation tax benefit		-			(15	)
Other - net		(2,235	)		(1,121	)
Total adjustments		15,729			12,122
Net Cash Provided by Operating Activities		25,481			22,773
Investing Activities
Construction and capital expenditures
Capital expenditures		(11,067	)		(14,388	)
Interest during construction		(553	)		(455	)
Acquisitions, net of cash acquired		(184	)		(10,086	)
Dispositions		205			1,444
Investments in securities, net of sales		(14	)		(103	)
Sale of other Investments		-			436
Other		44			33
Net Cash Used in Investing Activities		(11,569	)		(23,119	)
Financing Activities
Net change in short-term borrowings with
original maturities of three months or less		(3,918	)		5,188
Issuance of long-term debt		8,161			10,924
Repayment of long-term debt		(6,170	)		(3,143	)
Purchase of treasury shares		-			(6,077	)
Issuance of treasury shares		8			317
Dividends paid		(7,252	)		(7,150	)
Stock-based compensation tax benefit		-			15
Other		(366	)		(104	)
Net Cash Used in Financing Activities		(9,537	)		(30	)
Net increase (decrease) in cash and cash equivalents		4,375			(376	)
Cash and cash equivalents beginning of year		1,792			1,970
Cash and Cash Equivalents End of Period	$	6,167		$	1,594

Financial Data
AT&T Inc.
Supplementary Operating and Financial Data
Dollars in millions except per share amounts
Unaudited	Three Months Ended									Nine Months Ended
	9/30/2009			9/30/2008			% Chg			9/30/2009			9/30/2008			% Chg
Wireless
Wireless Customers (000)											81,596			74,871			9.0	%
Net Customer Additions (000)		2,026			1,976			2.5	%		4,617			4,604			0.3	%
M&A Activity, Partitioned Customers and Other Adjs. (000)		(30	)		13						(30	)		215
Postpaid Customers (000)											63,434			58,735			8.0	%
Net Postpaid Customer Additions (000)		1,385			1,693			-18.2	%		3,413			3,292			3.7	%
Postpaid Churn		1.17	%		1.22	%	-5 BP				1.15	%		1.19	%	-4 BP
Licensed POPs (000,000)											306			304			0.7	%
In-Region Wireline 1
Total Consumer Revenue Connections (000)
Retail Consumer Voice Connections 2											25,205			28,329			-11.0	%
Retail Consumer Additional Voice Connections 2											2,893			3,526			-18.0	%
Consumer Wired Broadband Connections 3											13,550			12,729			6.4	%
Video Connections: 4
Satellite Connections											2,195			2,182			0.6	%
U-verse Video Connections											1,816			781
Total Consumer Revenue Connections (000)											45,659			47,547			-4.0	%
Net Consumer Revenue Connection Changes (000)		(630	)		(869	)		27.5	%		(1,384	)		(1,891	)		26.8	%
Broadband and Video
Total Broadband Connections (000) 5											17,083			15,965			7.0	%
Net Broadband Connection Changes (000) 5		138			334			-58.7	%		818			1,163			-29.7	%
Total Video Connections (000) 4											4,012			2,963			35.4	%
Net Video Connection Changes (000) 4		225			179			25.7	%		777			616			26.1	%
AT&T Inc.
Construction and capital expenditures
Capital expenditures	$	4,031		$	5,068			-20.5	%	$	11,067		$	14,388			-23.1	%
Interest during construction	$	185		$	198			-6.6	%	$	553		$	455			21.5	%
Dividends Declared per Share	$	0.4100		$	0.4000			2.5	%	$	1.2300		$	1.2000			2.5	%
End of Period Common Shares Outstanding (000,000)											5,901			5,893			0.1	%
Debt Ratio 6,7											42.1	%		40.5	%	160 BP
Total Employees											284,970			303,530			-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 3Q09, total switched access lines were 50,833, retail business switched access lines totaled 20,534, and wholesale and coin switched access lines totaled 2,936.