Financial Data | ||||||||||||||||||||||||
AT&T Inc. | ||||||||||||||||||||||||
Consolidated Statements of Income | ||||||||||||||||||||||||
Dollars in millions except per share amounts | ||||||||||||||||||||||||
Unaudited | Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||
12/31/2011 | 12/31/2010 | % Chg | 12/31/2011 | 12/31/2010 | % Chg | |||||||||||||||||||
Operating Revenues | ||||||||||||||||||||||||
Wireless service | $ | 14,347 | $ | 13,799 | 4.0 | % | $ | 56,726 | $ | 53,510 | 6.0 | % | ||||||||||||
Data | 7,598 | 7,091 | 7.1 | % | 29,606 | 27,555 | 7.4 | % | ||||||||||||||||
Voice | 5,995 | 6,647 | -9.8 | % | 25,131 | 28,332 | -11.3 | % | ||||||||||||||||
Directory | 781 | 926 | -15.7 | % | 3,293 | 3,935 | -16.3 | % | ||||||||||||||||
Other | 3,782 | 2,898 | 30.5 | % | 11,967 | 10,948 | 9.3 | % | ||||||||||||||||
Total Operating Revenues | 32,503 | 31,361 | 3.6 | % | 126,723 | 124,280 | 2.0 | % | ||||||||||||||||
Operating Expenses | ||||||||||||||||||||||||
Cost of services and sales (exclusive of depreciation and amortization shown separately below) | 17,474 | 13,939 | 25.4 | % | 57,374 | 52,379 | 9.5 | % | ||||||||||||||||
Selling, general and administrative | 16,536 | 10,342 | 59.9 | % | 38,844 | 32,864 | 18.2 | % | ||||||||||||||||
Impairment of intangible assets | 2,910 | 85 | - | 2,910 | 85 | - | ||||||||||||||||||
Depreciation and amortization | 4,573 | 4,907 | -6.8 | % | 18,377 | 19,379 | -5.2 | % | ||||||||||||||||
Total Operating Expenses | 41,493 | 29,273 | 41.7 | % | 117,505 | 104,707 | 12.2 | % | ||||||||||||||||
Operating Income (Loss) | (8,990 | ) | 2,088 | - | 9,218 | 19,573 | -52.9 | % | ||||||||||||||||
Interest Expense | 952 | 746 | 27.6 | % | 3,535 | 2,994 | 18.1 | % | ||||||||||||||||
Equity in Net Income of Affiliates | 135 | 133 | 1.5 | % | 784 | 762 | 2.9 | % | ||||||||||||||||
Other Income (Expense) - Net | 117 | 72 | 62.5 | % | 249 | 897 | -72.2 | % | ||||||||||||||||
Income (Loss) from Continuing Operations Before Income Taxes | (9,690 | ) | 1,547 | - | 6,716 | 18,238 | -63.2 | % | ||||||||||||||||
Income Tax (Benefit) Expense | (3,062 | ) | 388 | - | 2,532 | (1,162 | ) | - | ||||||||||||||||
Income (Loss) from Continuing Operations | (6,628 | ) | 1,159 | - | 4,184 | 19,400 | -78.4 | % | ||||||||||||||||
Income from Discontinued Operations, net of tax | - | 2 | - | - | 779 | - | ||||||||||||||||||
Net Income (Loss) | (6,628 | ) | 1,161 | - | 4,184 | 20,179 | -79.3 | % | ||||||||||||||||
Less: Net Income Attributable to Noncontrolling Interest | (50 | ) | (72 | ) | 30.6 | % | (240 | ) | (315 | ) | 23.8 | % | ||||||||||||
Net Income (Loss) Attributable to AT&T | $ | (6,678 | ) | $ | 1,089 | - | $ | 3,944 | $ | 19,864 | -80.1 | % | ||||||||||||
Basic Earnings (Loss) Per Share from Continuing Operations Attributable to AT&T | $ | (1.12 | ) | $ | 0.18 | - | $ | 0.66 | $ | 3.23 | -79.6 | % | ||||||||||||
Basic Earnings Per Share from Discontinued Operations Attributable to AT&T | - | - | - | - | 0.13 | - | ||||||||||||||||||
Basic Earnings (Loss) Per Share Attributable to AT&T | $ | (1.12 | ) | $ | 0.18 | - | $ | 0.66 | $ | 3.36 | -80.4 | % | ||||||||||||
Weighted Average Common Shares Outstanding (000,000) | 5,933 | 5,915 | 0.3 | % | 5,928 | 5,913 | 0.3 | % | ||||||||||||||||
Diluted Earnings (Loss) Per Share from Continuing Operations Attributable to AT&T | $ | (1.12 | ) | $ | 0.18 | - | $ | 0.66 | $ | 3.22 | -79.5 | % | ||||||||||||
Diluted Earnings Per Share from Discontinued Operations Attributable to AT&T | - | - | - | - | 0.13 | - | ||||||||||||||||||
Diluted Earnings (Loss) Per Share Attributable to AT&T | $ | (1.12 | ) | $ | 0.18 | - | $ | 0.66 | $ | 3.35 | -80.3 | % | ||||||||||||
Weighted Average Common Shares Outstanding with Dilution (000,000) | 5,955 | 5,941 | 0.2 | % | 5,950 | 5,938 | 0.2 | % | ||||||||||||||||
Financial Data | ||||||||||||||||||||||||||
AT&T Inc. | ||||||||||||||||||||||||||
Statements of Segment Income | ||||||||||||||||||||||||||
Dollars in millions | ||||||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||
Wireless | 12/31/2011 | 12/31/2010 | % Chg | 12/31/2011 | 12/31/2010 | % Chg | ||||||||||||||||||||
Segment Operating Revenues | ||||||||||||||||||||||||||
Service | $ | 14,347 | $ | 13,799 | 4.0 | % | $ | 56,726 | $ | 53,510 | 6.0 | % | ||||||||||||||
Equipment | 2,348 | 1,382 | 69.9 | % | 6,486 | 4,990 | 30.0 | % | ||||||||||||||||||
Total Segment Operating Revenues | 16,695 | 15,181 | 10.0 | % | 63,212 | 58,500 | 8.1 | % | ||||||||||||||||||
Segment Operating Expenses | ||||||||||||||||||||||||||
Operations and support | 12,574 | 9,988 | 25.9 | % | 41,581 | 36,746 | 13.2 | % | ||||||||||||||||||
Depreciation and amortization | 1,587 | 1,721 | -7.8 | % | 6,324 | 6,497 | -2.7 | % | ||||||||||||||||||
Total Segment Operating Expenses | 14,161 | 11,709 | 20.9 | % | 47,905 | 43,243 | 10.8 | % | ||||||||||||||||||
Segment Operating Income | 2,534 | 3,472 | -27.0 | % | 15,307 | 15,257 | 0.3 | % | ||||||||||||||||||
Equity in Net Income (Loss) of Affiliates | (10 | ) | (5 | ) | - | (29 | ) | 9 | - | |||||||||||||||||
Segment Income | $ | 2,524 | $ | 3,467 | -27.2 | % | $ | 15,278 | $ | 15,266 | 0.1 | % | ||||||||||||||
Segment Operating Income Margin | 15.2 | % | 22.9 | % | 24.2 | % | 26.1 | % | ||||||||||||||||||
Wireline | ||||||||||||||||||||||||||
Segment Operating Revenues | ||||||||||||||||||||||||||
Data | $ | 7,598 | $ | 7,091 | 7.1 | % | $ | 29,606 | $ | 27,555 | 7.4 | % | ||||||||||||||
Voice | 5,995 | 6,647 | -9.8 | % | 25,131 | 28,332 | -11.3 | % | ||||||||||||||||||
Other | 1,326 | 1,390 | -4.6 | % | 5,028 | 5,413 | -7.1 | % | ||||||||||||||||||
Total Segment Operating Revenues | 14,919 | 15,128 | -1.4 | % | 59,765 | 61,300 | -2.5 | % | ||||||||||||||||||
Segment Operating Expenses | ||||||||||||||||||||||||||
Operations and support | 10,250 | 10,075 | 1.7 | % | 40,879 | 41,096 | -0.5 | % | ||||||||||||||||||
Depreciation and amortization | 2,889 | 3,091 | -6.5 | % | 11,615 | 12,371 | -6.1 | % | ||||||||||||||||||
Total Segment Operating Expenses | 13,139 | 13,166 | -0.2 | % | 52,494 | 53,467 | -1.8 | % | ||||||||||||||||||
Segment Operating Income | 1,780 | 1,962 | -9.3 | % | 7,271 | 7,833 | -7.2 | % | ||||||||||||||||||
Equity in Net Income of Affiliates | - | 4 | - | - | 11 | - | ||||||||||||||||||||
Segment Income | $ | 1,780 | $ | 1,966 | -9.5 | % | $ | 7,271 | $ | 7,844 | -7.3 | % | ||||||||||||||
Segment Operating Income Margin | 11.9 | % | 13.0 | % | 12.2 | % | 12.8 | % | ||||||||||||||||||
Advertising Solutions | ||||||||||||||||||||||||||
Segment Operating Revenues | $ | 781 | $ | 926 | -15.7 | % | $ | 3,293 | $ | 3,935 | -16.3 | % | ||||||||||||||
Segment Operating Expenses | ||||||||||||||||||||||||||
Operations and support | 558 | 626 | -10.9 | % | 2,264 | 2,583 | -12.3 | % | ||||||||||||||||||
Impairment of Intangible Assets | 2,910 | - | - | 2,910 | - | - | ||||||||||||||||||||
Depreciation and amortization | 85 | 104 | -18.3 | % | 386 | 497 | -22.3 | % | ||||||||||||||||||
Total Segment Operating Expenses | 3,553 | 730 | - | 5,560 | 3,080 | 80.5 | % | |||||||||||||||||||
Segment Income (Loss) | $ | (2,772 | ) | $ | 196 | - | $ | (2,267 | ) | $ | 855 | - | ||||||||||||||
Segment Income Margin | - | 21.2 | % | (68.8 | ) | % | 21.7 | % | ||||||||||||||||||
Other | ||||||||||||||||||||||||||
Segment Operating Revenues | $ | 108 | $ | 126 | -14.3 | % | $ | 453 | $ | 545 | -16.9 | % | ||||||||||||||
Segment Operating Expenses | 4,360 | 1,147 | - | 5,266 | 2,396 | - | ||||||||||||||||||||
Segment Operating Loss | (4,252 | ) | (1,021 | ) | - | (4,813 | ) | (1,851 | ) | - | ||||||||||||||||
Equity in Net Income of Affiliates | 145 | 134 | 8.2 | % | 813 | 742 | 9.6 | % | ||||||||||||||||||
Segment Loss from Continuing Operations | $ | (4,107 | ) | $ | (887 | ) | - | $ | (4,000 | ) | $ | (1,109 | ) | - |
Financial Data | |||||||
AT&T Inc. | |||||||
Consolidated Balance Sheets | |||||||
Dollars in millions except per share amounts | |||||||
12/31/11 | 12/31/10 | ||||||
Unaudited | |||||||
Assets | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 3,185 | $ | 1,437 | |||
Accounts receivable - net of allowances for | |||||||
doubtful accounts of $878 and $957 | 13,606 | 13,610 | |||||
Prepaid expenses | 1,155 | 1,458 | |||||
Deferred income taxes | 1,470 | 1,170 | |||||
Other current assets | 3,611 | 3,179 | |||||
Total current assets | 23,027 | 20,854 | |||||
Property, Plant and Equipment - Net | 107,087 | 103,196 | |||||
Goodwill | 70,842 | 73,601 | |||||
Licenses | 51,374 | 50,372 | |||||
Customer Lists and Relationships - Net | 2,757 | 4,708 | |||||
Other Intangible Assets - Net | 5,212 | 5,440 | |||||
Investments in Equity Affiliates | 3,718 | 4,515 | |||||
Other Assets | 6,327 | 6,705 | |||||
Total Assets | $ | 270,344 | $ | 269,391 | |||
Liabilities and Stockholders' Equity | |||||||
Current Liabilities | |||||||
Debt maturing within one year | $ | 3,453 | $ | 7,196 | |||
Accounts payable and accrued liabilities | 19,858 | 20,055 | |||||
Advanced billing and customer deposits | 3,872 | 4,086 | |||||
Accrued taxes | 1,003 | 975 | |||||
Dividends payable | 2,608 | 2,542 | |||||
Total current liabilities | 30,794 | 34,854 | |||||
Long-Term Debt | 61,300 | 58,971 | |||||
Deferred Credits and Other Noncurrent Liabilities | |||||||
Deferred income taxes | 25,748 | 22,070 | |||||
Postemployment benefit obligation | 34,011 | 28,803 | |||||
Other noncurrent liabilities | 12,694 | 12,743 | |||||
Total deferred credits and other noncurrent liabilities | 72,453 | 63,616 | |||||
Stockholders' Equity | |||||||
Common stock | 6,495 | 6,495 | |||||
Additional paid-in capital | 91,156 | 91,731 | |||||
Retained earnings | 25,453 | 31,792 | |||||
Treasury stock | (20,750 | ) | (21,083 | ) | |||
Accumulated other comprehensive income | 3,180 | 2,712 | |||||
Noncontrolling interest | 263 | 303 | |||||
Total stockholders' equity | 105,797 | 111,950 | |||||
Total Liabilities and Stockholders' Equity | $ | 270,344 | $ | 269,391 |
Financial Data | |||||||||
AT&T Inc. | |||||||||
Consolidated Statements of Cash Flows | |||||||||
Dollars in millions | |||||||||
Unaudited | Twelve Months Ended | ||||||||
12/31/11 | 12/31/10 | 12/31/09 | |||||||
Operating Activities | |||||||||
Net income | $ | 4,184 | $ | 20,179 | $ | 12,447 | |||
Adjustments to reconcile net income to | |||||||||
net cash provided by operating activities: | |||||||||
Depreciation and amortization | 18,377 | 19,379 | 19,515 | ||||||
Undistributed earnings from investments in equity affiliates | (623 | ) | (603 | ) | (419 | ) | |||
Provision for uncollectible accounts | 1,136 | 1,334 | 1,762 | ||||||
Deferred income tax expense (benefit) and noncurrent | |||||||||
unrecognized tax benefits | 2,937 | (3,280 | ) | 1,885 | |||||
Net gain from impairment and sale of investments | (89 | ) | (802 | ) | - | ||||
Impairment of intangible assets | 2,910 | 85 | - | ||||||
Remeasurement of pension and postretirement benefits | 6,280 | 2,521 | 215 | ||||||
Income from discontinued operations | - | (779 | ) | (20 | ) | ||||
Changes in operating assets and liabilities: | |||||||||
Accounts receivable | (1,133 | ) | (99 | ) | (490 | ) | |||
Other current assets | (428 | ) | (187 | ) | (617 | ) | |||
Accounts payable and accrued liabilities | (383 | ) | (1,508 | ) | 943 | ||||
Retirement benefit funding | (1,000 | ) | - | - | |||||
Other - net | 2,480 | (1,247 | ) | (816 | ) | ||||
Total adjustments | 30,464 | 14,814 | 21,958 | ||||||
Net Cash Provided by Operating Activities | 34,648 | 34,993 | 34,405 | ||||||
Investing Activities | |||||||||
Construction and capital expenditures: | |||||||||
Capital expenditures | (20,110 | ) | (19,530 | ) | (16,554 | ) | |||
Interest during construction | (162 | ) | (772 | ) | (740 | ) | |||
Acquisitions, net of cash acquired | (2,368 | ) | (2,906 | ) | (983 | ) | |||
Dispositions | 1,301 | 1,830 | 287 | ||||||
(Purchases) and sales of securities, net | 62 | (100 | ) | 55 | |||||
Other | 27 | 29 | 52 | ||||||
Net Cash Used in Investing Activities | (21,250 | ) | (21,449 | ) | (17,883 | ) | |||
Financing Activities | |||||||||
Net change in short-term borrowings with | |||||||||
original maturities of three months or less | (1,625 | ) | 1,592 | (3,910 | ) | ||||
Issuance of long-term debt | 7,936 | 2,235 | 8,161 | ||||||
Repayment of long-term debt | (7,574 | ) | (9,294 | ) | (8,652 | ) | |||
Issuance of treasury shares | 237 | 50 | 28 | ||||||
Dividends paid | (10,172 | ) | (9,916 | ) | (9,670 | ) | |||
Other | (452 | ) | (515 | ) | (465 | ) | |||
Net Cash Used in Financing Activities | (11,650 | ) | (15,848 | ) | (14,508 | ) | |||
Net increase (decrease) in cash and cash equivalents | 1,748 | (2,304 | ) | 2,014 | |||||
Cash and cash equivalents beginning of year | 1,437 | 3,741 | 1,727 | ||||||
Cash and Cash Equivalents End of Year | $ | 3,185 | $ | 1,437 | $ | 3,741 |
Financial Data | ||||||||||||||||||||||||||
AT&T Inc. | ||||||||||||||||||||||||||
Supplementary Operating and Financial Data | ||||||||||||||||||||||||||
Dollars in millions except per share amounts | ||||||||||||||||||||||||||
Unaudited | Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||||
12/31/2011 | 12/31/2010 | % Chg | 12/31/2011 | 12/31/2010 | % Chg | |||||||||||||||||||||
Wireless | ||||||||||||||||||||||||||
Volumes (000) | ||||||||||||||||||||||||||
Total | 103,247 | 95,536 | 8.1 | % | ||||||||||||||||||||||
Postpaid6 | 69,309 | 68,041 | 1.9 | % | ||||||||||||||||||||||
Prepaid6 | 7,225 | 6,524 | 10.7 | % | ||||||||||||||||||||||
Reseller6 | 13,644 | 11,645 | 17.2 | % | ||||||||||||||||||||||
Connected Devices6 | 13,069 | 9,326 | 40.1 | % | ||||||||||||||||||||||
Wireless Net Adds (000) | ||||||||||||||||||||||||||
Total | 2,497 | 2,803 | -10.9 | % | 7,699 | 8,853 | -13.0 | % | ||||||||||||||||||
Postpaid6 | 717 | 400 | 79.3 | % | 1,429 | 2,153 | -33.6 | % | ||||||||||||||||||
Prepaid6 | 159 | 307 | -48.2 | % | 674 | 952 | -29.2 | % | ||||||||||||||||||
Reseller6 | 592 | 595 | -0.5 | % | 1,874 | 1,140 | 64.4 | % | ||||||||||||||||||
Connected Devices6 | 1,029 | 1,501 | -31.4 | % | 3,722 | 4,608 | -19.2 | % | ||||||||||||||||||
M&A Activity, Partitioned Customers and Other Adjs. | 12 | (28 | ) | - | 12 | 1,563 | -99.2 | % | ||||||||||||||||||
Wireless Churn | ||||||||||||||||||||||||||
Postpaid Churn6 | 1.21 | % | 1.15 | % | 6 BP | 1.18 | % | 1.09 | % | 9 BP | ||||||||||||||||
Total Churn6 | 1.39 | % | 1.32 | % | 7 BP | 1.37 | % | 1.31 | % | 6 BP | ||||||||||||||||
Other | ||||||||||||||||||||||||||
Licensed POPs (000,000) | 313 | 308 | 1.6 | % | ||||||||||||||||||||||
In-Region Wireline1 | ||||||||||||||||||||||||||
Voice | ||||||||||||||||||||||||||
Total Wireline Voice Connections | 39,012 | 43,563 | -10.4 | % | ||||||||||||||||||||||
Net Change | (1,086 | ) | (1,233 | ) | 11.9 | % | (4,551 | ) | (4,925 | ) | 7.6 | % | ||||||||||||||
Broadband | ||||||||||||||||||||||||||
Total Wireline Broadband Connections | 16,427 | 16,309 | 0.7 | % | ||||||||||||||||||||||
Net Change | (49 | ) | 209 | - | 118 | 520 | -77.3 | % | ||||||||||||||||||
Video | ||||||||||||||||||||||||||
U-verse | 3,791 | 2,987 | 26.9 | % | ||||||||||||||||||||||
Satellite | 1,765 | 1,930 | -8.5 | % | ||||||||||||||||||||||
Total Video Connections | 5,556 | 4,917 | 13.0 | % | ||||||||||||||||||||||
Net Change | 164 | 182 | -9.9 | % | 639 | 678 | -5.8 | % | ||||||||||||||||||
Consumer Revenue Connections | ||||||||||||||||||||||||||
Broadband3 | 14,492 | 14,320 | 1.2 | % | ||||||||||||||||||||||
Video Connections4 | 5,542 | 4,912 | 12.8 | % | ||||||||||||||||||||||
Voice2 | 21,232 | 24,195 | -12.2 | % | ||||||||||||||||||||||
Total Consumer Revenue Connections | 41,266 | 43,427 | -5.0 | % | ||||||||||||||||||||||
Net Change | (586 | ) | (306 | ) | -91.5 | % | (2,161 | ) | (1,861 | ) | -16.1 | % | ||||||||||||||
AT&T Inc. | ||||||||||||||||||||||||||
Construction and capital expenditures | ||||||||||||||||||||||||||
Capital expenditures | $ | 5,485 | $ | 6,360 | -13.8 | % | $ | 20,110 | $ | 19,530 | 3.0 | % | ||||||||||||||
Interest during construction | $ | 43 | $ | 195 | -77.9 | % | $ | 162 | $ | 772 | -79.0 | % | ||||||||||||||
Dividends Declared per Share | $ | 0.44 | $ | 0.43 | 2.3 | % | $ | 1.73 | $ | 1.69 | 2.4 | % | ||||||||||||||
End of Period Common Shares Outstanding (000,000) | 5,927 | 5,911 | 0.3 | % | ||||||||||||||||||||||
Debt Ratio5 | 38.0 | % | 37.1 | % | 90 BP | |||||||||||||||||||||
Total Employees | 256,420 | 266,590 | -3.8 | % | ||||||||||||||||||||||
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 2,278 as of December 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 4Q11, total switched access lines were 36,734, retail business switched access lines totaled 15,613, and wholesale | ||||||||||||||||||||||||||
and coin switched access lines totaled 2,167. |