AT&T 8K Other Events | T 20 Apr 11

Financial Data

AT&T Inc.
Consolidated Statements of Income
Dollars in millions except per share amounts
Unaudited	Three Months Ended
	3/31/2011			3/31/2010			% Chg
Operating Revenues
Wireless service	$	13,961		$	12,850			8.6	%
Data		7,180			6,651			8.0	%
Voice		6,551			7,483			-12.5	%
Directory		868			1,041			-16.6	%
Other		2,687			2,505			7.3	%
Total Operating Revenues		31,247			30,530			2.3	%

Operating Expenses
Cost of services and sales (exclusive of depreciation and
amortization shown separately below)		13,403			12,383			8.2	%
Selling, general and administrative		7,452			7,396			0.8	%
Depreciation and amortization		4,584			4,780			-4.1	%
Total Operating Expenses		25,439			24,559			3.6	%
Operating Income		5,808			5,971			-2.7	%
Interest Expense		846			765			10.6	%
Equity in Net Income of Affiliates		249			217			14.7	%
Other Income (Expense) - Net		59			(22	)		-
Income from Continuing Operations Before Income Taxes		5,270			5,401			-2.4	%
Income Tax Expense		1,802			2,863			-37.1	%
Income from Continuing Operations		3,468			2,538			36.6	%
Income from Discontinued Operations, net of tax		-			2			-
Net Income		3,468			2,540			36.5	%
Less: Net Income Attributable to Noncontrolling Interest		(60	)		(87	)		31.0	%
Net Income Attributable to AT&T	$	3,408		$	2,453			38.9	%


Basic Earnings Per Share from Continuing
Operations Attributable to AT&T	$	0.57		$	0.42			35.7	%
Basic Earnings Per Share from Discontinued
Operations Attributable to AT&T		-			-			-
Basic Earnings Per Share Attributable to AT&T	$	0.57		$	0.42			35.7	%
Weighted Average Common
Shares Outstanding (000,000)		5,925			5,905			0.3	%

Diluted Earnings Per Share from Continuing
Operations Attributable to AT&T	$	0.57		$	0.41			39.0	%
Diluted Earnings Per Share from Discontinued
Operations Attributable to AT&T		-			-			-
Diluted Earnings Per Share Attributable to AT&T	$	0.57		$	0.41			39.0	%
Weighted Average Common
Shares Outstanding with Dilution (000,000)		5,945			5,935			0.2	%

Financial Data

AT&T Inc.
Statements of Segment Income
Dollars in millions
Unaudited
	Three Months Ended

Wireless	3/31/2011			3/31/2010			% Chg
Segment Operating Revenues
Service	$	13,961		$	12,850			8.6	%
Equipment		1,348			1,047			28.7	%
Total Segment Operating Revenues		15,309			13,897			10.2	%

Segment Operating Expenses
Operations and support		9,858			8,173			20.6	%
Depreciation and amortization		1,505			1,558			-3.4	%
Total Segment Operating Expenses		11,363			9,731			16.8	%
Segment Operating Income		3,946			4,166			-5.3	%
Equity in Net Income (Loss) of Affiliates		(4	)		12			-
Segment Income	$	3,942		$	4,178			-5.6	%

Segment Operating Income Margin		25.8	%		30.0	%

Wireline
Segment Operating Revenues
Data	$	7,180		$	6,651			8.0	%
Voice		6,551			7,483			-12.5	%
Other		1,219			1,312			-7.1	%
Total Segment Operating Revenues		14,950			15,446			-3.2	%

Segment Operating Expenses
Operations and support		10,266			10,512			-2.3	%
Depreciation and amortization		2,958			3,076			-3.8	%
Total Segment Operating Expenses		13,224			13,588			-2.7	%
Segment Operating Income		1,726			1,858			-7.1	%
Equity in Net Income of Affiliates		-			5			-
Segment Income	$	1,726		$	1,863			-7.4	%

Segment Operating Income Margin		11.5	%		12.0	%

Advertising Solutions
Segment Operating Revenues	$	868		$	1,041			-16.6	%

Segment Operating Expenses
Operations and support		573			664			-13.7	%
Depreciation and amortization		105			138			-23.9	%
Total Segment Operating Expenses		678			802			-15.5	%
Segment Income	$	190		$	239			-20.5	%

Segment Income Margin		21.9	%		23.0	%

Other
Segment Operating Revenues	$	120		$	146			-17.8	%
Segment Operating Expenses		174			438			-60.3	%
Segment Operating Income (Loss)		(54	)		(292	)		81.5	%
Equity in Net Income of Affiliates		253			200			26.5	%
Segment Income (Loss) from Continuing Operations	$	199		$	(92	)		-

Financial Data

AT&T Inc.
Consolidated Balance Sheets
Dollars in millions except per share amounts
	3/31/11			12/31/10
	Unaudited

Assets
Current Assets
Cash and cash equivalents	$	1,391		$	1,437
Accounts receivable - net of allowances for
doubtful accounts of $949 and $957		13,246			13,610
Prepaid expenses		1,674			1,458
Deferred income taxes		1,157			1,170
Other current assets		2,269			2,276
Total current assets		19,737			19,951
Property, Plant and Equipment - Net		103,369			103,196
Goodwill		73,602			73,601
Licenses		50,396			50,372
Customer Lists and Relationships - Net		4,154			4,708
Other Intangible Assets - Net		5,423			5,440
Investments in Equity Affiliates		4,845			4,515
Other Assets		6,559			6,705
Total Assets	$	268,085		$	268,488

Liabilities and Stockholders' Equity
Current Liabilities
Debt maturing within one year	$	6,902		$	7,196
Accounts payable and accrued liabilities		18,349			20,055
Advanced billing and customer deposits		3,959			4,086
Accrued taxes		1,499			72
Dividends payable		2,545			2,542
Total current liabilities		33,254			33,951
Long-Term Debt		58,126			58,971
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes		23,149			22,070
Postemployment benefit obligation		28,510			28,803
Other noncurrent liabilities		12,203			12,743
Total deferred credits and other noncurrent liabilities		63,862			63,616
Stockholders' Equity
Common stock		6,495			6,495
Additional paid-in capital		91,636			91,731
Retained earnings		32,649			31,792
Treasury stock		(20,949	)		(21,083	)
Accumulated other comprehensive income		2,713			2,712
Noncontrolling interest		299			303
Total stockholders' equity		112,843			111,950
Total Liabilities and Stockholders' Equity	$	268,085		$	268,488

Financial Data

AT&T Inc.
Consolidated Statements of Cash Flows
Dollars in millions
Unaudited	Three months ended March 31,
	2011			2010
Operating Activities
Net income	$	3,468		$	2,540
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization		4,584			4,780
Undistributed earnings from investments in equity affiliates		(233	)		(201	)
Provision for uncollectible accounts		292			350
Deferred income tax expense and noncurrent
unrecognized tax benefits		731			1,609
Net (gain) loss from impairment and sale of investments		(41	)		50
Changes in operating assets and liabilities:
Accounts receivable		72			395
Other current assets		(196	)		92
Accounts payable and accrued liabilities		(406	)		(2,043	)
Net income attributable to noncontrolling interest		(60	)		(87	)
Other - net		(479	)		(247	)
Total adjustments		4,264			4,698
Net Cash Provided by Operating Activities		7,732			7,238

Investing Activities
Construction and capital expenditures
Capital expenditures		(4,133	)		(3,148	)
Interest during construction		(35	)		(184	)
Acquisitions, net of cash acquired		(54	)		(178	)
Dispositions		11			1
(Purchases) and sales of securities, net		127			(20	)
Other		9			7
Net Cash Used in Investing Activities		(4,075	)		(3,522	)

Financing Activities
Net change in short-term borrowings with
original maturities of three months or less		(36	)		323
Repayment of long-term debt		(1,264	)		(2,512	)
Issuance of treasury shares		18			3
Dividends paid		(2,540	)		(2,479	)
Other		119			(244	)
Net Cash Used in Financing Activities		(3,703	)		(4,909	)
Net decrease in cash and cash equivalents		(46	)		(1,193	)
Cash and cash equivalents beginning of year		1,437			3,741
Cash and Cash Equivalents End of Period	$	1,391		$	2,548

Financial Data

AT&T Inc.
Supplementary Operating and Financial Data
Dollars in millions except per share amounts
Unaudited	Three Months Ended
	3/31/2011			3/31/2010			% Chg

Wireless
Volumes (000)
Total		97,519			86,987			12.1	%
Postpaid6		68,062			65,108			4.5	%
Prepaid6		6,613			5,377			23.0	%
Reseller6		12,241			10,717			14.2	%
Connected Devices6		10,603			5,785			83.3	%

Wireless Net Adds (000)
Total		1,984			1,857			6.8	%
Postpaid6		62			512			-87.9	%
Prepaid6		85			24			-
Reseller6		561			269			-
Connected Devices6		1,276			1,052			21.3	%
M&A Activity, Partitioned Customers and Other Adjs.		(1	)		10

Wireless Churn
Postpaid Churn6		1.18	%		1.07	%	11 BP
Total Churn6		1.36	%		1.30	%	6 BP

Other
Licensed POPs (000,000)		313			307			2.0	%

In-Region Wireline1
Voice
Total Wireline Voice Connections		42,457			47,385			-10.4	%
Net Change		(1,106	)		(1,103	)		-0.3	%

Broadband
Total Wireline Broadband Connections		16,485			16,044			2.7	%
Net Change		175			255			-31.4	%

Video
U-verse		3,205			2,296			39.6	%
Satellite		1,886			2,127			-11.3	%
Total Video Connections		5,091			4,423			15.1	%
Net Change		174			184			-5.4	%

Consumer Revenue Connections
Broadband3		14,515			13,989			3.8	%
Video Connections4		5,085			4,422			15.0	%
Voice2		23,479			26,633			-11.8	%
Total Consumer Revenue Connections		43,079			45,044			-4.4	%
Net Change		(348	)		(243	)		-43.2	%

AT&T Inc.
Construction and capital expenditures
Capital expenditures	$	4,133		$	3,148			31.3	%
Interest during construction	$	35		$	184			-81.0	%
Dividends Declared per Share	$	0.43		$	0.42			2.4	%
End of Period Common Shares Outstanding (000,000)		5,918			5,909			0.2	%
Debt Ratio5		36.6	%		40.5	%	-390 BP
Total Employees		260,690			276,280			-5.6	%

1	In-region wireline represents access lines served by AT&T's incumbent local exchange companies.
2	Includes consumer U-verse Voice over Internet Protocol connections of 1,861 as of March 31, 2011.
3	Consumer wireline 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 long-term debt plus debt maturing within one year divided by total debt plus total stockholders' equity.
6	Prior year amounts restated to conform to current period reporting methodology.
	Note: For the end of 1Q11, total switched access lines were 40,596, retail business switched access lines totaled 16,656, and wholesale
		and coin switched access lines totaled 2,322.

AT&T (T) 8-KOther Events