Financial Data | |||||||||||||||||||||||
AT&T Inc. | |||||||||||||||||||||||
Consolidated Statements of Income | |||||||||||||||||||||||
Dollars in millions except per share amounts | |||||||||||||||||||||||
Unaudited | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
9/30/2012 | 9/30/2011 | % Chg | 9/30/2012 | 9/30/2011 | % Chg | ||||||||||||||||||
Operating Revenues | |||||||||||||||||||||||
Wireless service | $ | 14,906 | $ | 14,261 | 4.5 | % | $ | 44,237 | $ | 42,379 | 4.4 | % | |||||||||||
Data | 7,977 | 7,459 | 6.9 | % | 23,695 | 21,979 | 7.8 | % | |||||||||||||||
Voice | 5,565 | 6,242 | -10.8 | % | 17,155 | 19,132 | -10.3 | % | |||||||||||||||
Directory | - | 803 | - | 1,049 | 2,512 | -58.2 | % | ||||||||||||||||
Other | 3,011 | 2,713 | 11.0 | % | 8,720 | 8,218 | 6.1 | % | |||||||||||||||
Total Operating Revenues | 31,459 | 31,478 | -0.1 | % | 94,856 | 94,220 | 0.7 | % | |||||||||||||||
Operating Expenses | |||||||||||||||||||||||
Cost of services and sales (exclusive of depreciation and amortization shown separately below) | 12,718 | 12,656 | 0.5 | % | 38,000 | 38,225 | -0.6 | % | |||||||||||||||
Selling, general and administrative | 8,192 | 7,969 | 2.8 | % | 24,330 | 23,983 | 1.4 | % | |||||||||||||||
Depreciation and amortization | 4,512 | 4,618 | -2.3 | % | 13,571 | 13,804 | -1.7 | % | |||||||||||||||
Total Operating Expenses | 25,422 | 25,243 | 0.7 | % | 75,901 | 76,012 | -0.1 | % | |||||||||||||||
Operating Income | 6,037 | 6,235 | -3.2 | % | 18,955 | 18,208 | 4.1 | % | |||||||||||||||
Interest Expense | 824 | 889 | -7.3 | % | 2,624 | 2,583 | 1.6 | % | |||||||||||||||
Equity in Net Income of Affiliates | 182 | 193 | -5.7 | % | 537 | 649 | -17.3 | % | |||||||||||||||
Other Income (Expense) - Net | 47 | 46 | 2.2 | % | 122 | 132 | -7.6 | % | |||||||||||||||
Income Before Income Taxes | 5,442 | 5,585 | -2.6 | % | 16,990 | 16,406 | 3.6 | % | |||||||||||||||
Income Tax Expense | 1,741 | 1,899 | -8.3 | % | 5,672 | 5,594 | 1.4 | % | |||||||||||||||
Net Income | 3,701 | 3,686 | 0.4 | % | 11,318 | 10,812 | 4.7 | % | |||||||||||||||
Less: Net Income Attributable to Noncontrolling Interest | (66 | ) | (63 | ) | -4.8 | % | (197 | ) | (190 | ) | -3.7 | % | |||||||||||
Net Income Attributable to AT&T | $ | 3,635 | $ | 3,623 | 0.3 | % | $ | 11,121 | $ | 10,622 | 4.7 | % | |||||||||||
Basic Earnings Per Share Attributable to AT&T | $ | 0.63 | $ | 0.61 | 3.3 | % | $ | 1.90 | $ | 1.79 | 6.1 | % | |||||||||||
Weighted Average Common Shares Outstanding (000,000) | 5,771 | 5,936 | -2.8 | % | 5,848 | 5,931 | -1.4 | % | |||||||||||||||
Diluted Earnings Per Share Attributable to AT&T | $ | 0.63 | $ | 0.61 | 3.3 | % | $ | 1.90 | $ | 1.79 | 6.1 | % | |||||||||||
Weighted Average Common Shares Outstanding with Dilution (000,000) | 5,792 | 5,954 | -2.7 | % | 5,869 | 5,950 | -1.4 | % |
Financial Data | |||||||||||||||||||||||
AT&T Inc. | |||||||||||||||||||||||
Statements of Segment Income | |||||||||||||||||||||||
Dollars in millions | |||||||||||||||||||||||
Unaudited | |||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
Wireless | 9/30/2012 | 9/30/2011 | % Chg | 9/30/2012 | 9/30/2011 | % Chg | |||||||||||||||||
Segment Operating Revenues | |||||||||||||||||||||||
Service | $ | 14,906 | $ | 14,261 | 4.5 | % | $ | 44,237 | $ | 42,379 | 4.4 | % | |||||||||||
Equipment | 1,726 | 1,345 | 28.3 | % | 4,884 | 4,140 | 18.0 | % | |||||||||||||||
Total Segment Operating Revenues | 16,632 | 15,606 | 6.6 | % | 49,121 | 46,519 | 5.6 | % | |||||||||||||||
Segment Operating Expenses | |||||||||||||||||||||||
Operations and support | 10,549 | 9,376 | 12.5 | % | 30,337 | 29,023 | 4.5 | % | |||||||||||||||
Depreciation and amortization | 1,730 | 1,620 | 6.8 | % | 5,092 | 4,741 | 7.4 | % | |||||||||||||||
Total Segment Operating Expenses | 12,279 | 10,996 | 11.7 | % | 35,429 | 33,764 | 4.9 | % | |||||||||||||||
Segment Operating Income | 4,353 | 4,610 | -5.6 | % | 13,692 | 12,755 | 7.3 | % | |||||||||||||||
Equity in Net Income (Loss) of Affiliates | (17 | ) | (8 | ) | - | (45 | ) | (19 | ) | - | |||||||||||||
Segment Income | $ | 4,336 | $ | 4,602 | -5.8 | % | $ | 13,647 | $ | 12,736 | 7.2 | % | |||||||||||
Segment Operating Income Margin | 26.2 | % | 29.5 | % | 27.9 | % | 27.4 | % | |||||||||||||||
Wireline | |||||||||||||||||||||||
Segment Operating Revenues | |||||||||||||||||||||||
Data | $ | 7,977 | $ | 7,459 | 6.9 | % | $ | 23,695 | $ | 21,979 | 7.8 | % | |||||||||||
Voice | 5,565 | 6,242 | -10.8 | % | 17,155 | 19,132 | -10.3 | % | |||||||||||||||
Other | 1,271 | 1,354 | -6.1 | % | 3,795 | 4,025 | -5.7 | % | |||||||||||||||
Total Segment Operating Revenues | 14,813 | 15,055 | -1.6 | % | 44,645 | 45,136 | -1.1 | % | |||||||||||||||
Segment Operating Expenses | |||||||||||||||||||||||
Operations and support | 10,134 | 10,295 | -1.6 | % | 30,516 | 30,752 | -0.8 | % | |||||||||||||||
Depreciation and amortization | 2,774 | 2,892 | -4.1 | % | 8,348 | 8,726 | -4.3 | % | |||||||||||||||
Total Segment Operating Expenses | 12,908 | 13,187 | -2.1 | % | 38,864 | 39,478 | -1.6 | % | |||||||||||||||
Segment Operating Income | 1,905 | 1,868 | 2.0 | % | 5,781 | 5,658 | 2.2 | % | |||||||||||||||
Equity in Net Income (Loss) of Affiliates | - | - | - | (1 | ) | - | - | ||||||||||||||||
Segment Income | $ | 1,905 | $ | 1,868 | 2.0 | % | $ | 5,780 | $ | 5,658 | 2.2 | % | |||||||||||
Segment Operating Income Margin | 12.9 | % | 12.4 | % | 12.9 | % | 12.5 | % | |||||||||||||||
Advertising Solutions | |||||||||||||||||||||||
Segment Operating Revenues | $ | - | $ | 803 | - | $ | 1,049 | $ | 2,512 | -58.2 | % | ||||||||||||
Segment Operating Expenses | |||||||||||||||||||||||
Operations and support | - | 554 | - | 773 | 1,707 | -54.7 | % | ||||||||||||||||
Depreciation and amortization | - | 94 | - | 106 | 301 | -64.8 | % | ||||||||||||||||
Total Segment Operating Expenses | - | 648 | - | 879 | 2,008 | -56.2 | % | ||||||||||||||||
Segment Income | $ | - | $ | 155 | - | $ | 170 | $ | 504 | -66.3 | % | ||||||||||||
Segment Income Margin | - | 19.3 | % | 16.2 | % | 20.1 | % | ||||||||||||||||
Other | |||||||||||||||||||||||
Segment Operating Revenues | $ | 14 | $ | 14 | - | $ | 41 | $ | 53 | -22.6 | % | ||||||||||||
Segment Operating Expenses | 235 | 412 | -43.0 | % | 729 | 762 | -4.3 | % | |||||||||||||||
Segment Operating Income (Loss) | (221 | ) | (398 | ) | 44.5 | % | (688 | ) | (709 | ) | 3.0 | % | |||||||||||
Equity in Net Income of Affiliates | 199 | 201 | -1.0 | % | 583 | 668 | -12.7 | % | |||||||||||||||
Segment Income (Loss) | $ | (22 | ) | $ | (197 | ) | 88.8 | % | $ | (105 | ) | $ | (41 | ) | - |
Financial Data | ||||||||
AT&T Inc. | ||||||||
Consolidated Balance Sheets | ||||||||
Dollars in millions except per share amounts | ||||||||
9/30/12 | 12/31/11 | |||||||
Unaudited | ||||||||
Assets | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 2,217 | $ | 3,185 | ||||
Accounts receivable - net of allowances for doubtful accounts of $606 and $878 | 12,398 | 13,606 | ||||||
Prepaid expenses | 1,337 | 1,155 | ||||||
Deferred income taxes | 1,312 | 1,470 | ||||||
Other current assets | 1,694 | 3,611 | ||||||
Total current assets | 18,958 | 23,027 | ||||||
Property, Plant and Equipment - Net | 108,217 | 107,087 | ||||||
Goodwill | 69,762 | 70,842 | ||||||
Licenses | 52,082 | 51,374 | ||||||
Customer Lists and Relationships - Net | 1,622 | 2,757 | ||||||
Other Intangible Assets - Net | 5,038 | 5,212 | ||||||
Investments in and Advances to Equity Affiliates | 4,563 | 3,718 | ||||||
Other Assets | 6,607 | 6,327 | ||||||
Total Assets | $ | 266,849 | $ | 270,344 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current Liabilities | ||||||||
Debt maturing within one year | $ | 3,433 | $ | 3,453 | ||||
Accounts payable and accrued liabilities | 18,936 | 19,858 | ||||||
Advanced billing and customer deposits | 3,709 | 3,872 | ||||||
Accrued taxes | 2,209 | 1,003 | ||||||
Dividends payable | 2,511 | 2,608 | ||||||
Total current liabilities | 30,798 | 30,794 | ||||||
Long-Term Debt | 60,314 | 61,300 | ||||||
Deferred Credits and Other Noncurrent Liabilities | ||||||||
Deferred income taxes | 29,092 | 25,748 | ||||||
Postemployment benefit obligation | 33,842 | 34,011 | ||||||
Other noncurrent liabilities | 11,529 | 12,694 | ||||||
Total deferred credits and other noncurrent liabilities | 74,463 | 72,453 | ||||||
Stockholders' Equity | ||||||||
Common stock | 6,495 | 6,495 | ||||||
Additional paid-in capital | 90,982 | 91,156 | ||||||
Retained earnings | 28,907 | 25,453 | ||||||
Treasury stock | (28,533 | ) | (20,750 | ) | ||||
Accumulated other comprehensive income | 3,106 | 3,180 | ||||||
Noncontrolling interest | 317 | 263 | ||||||
Total stockholders' equity | 101,274 | 105,797 | ||||||
Total Liabilities and Stockholders' Equity | $ | 266,849 | $ | 270,344 |
Financial Data | ||||||||
AT&T Inc. | ||||||||
Consolidated Statements of Cash Flows | ||||||||
Dollars in millions | ||||||||
Unaudited | Nine Months Ended September 30, | |||||||
2012 | 2011 | |||||||
Operating Activities | ||||||||
Net income | $ | 11,318 | $ | 10,812 | ||||
Adjustments to reconcile net income to | ||||||||
net cash provided by operating activities: | ||||||||
Depreciation and amortization | 13,571 | 13,804 | ||||||
Undistributed earnings from investments in equity affiliates | (483 | ) | (539 | ) | ||||
Provision for uncollectible accounts | 835 | 805 | ||||||
Deferred income tax expense and noncurrent | ||||||||
unrecognized tax benefits | 3,441 | 4,942 | ||||||
Net (gain) loss from sale of investments, net of impairments | (27 | ) | (57 | ) | ||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (450 | ) | (573 | ) | ||||
Other current assets | 1,459 | 1,342 | ||||||
Accounts payable and accrued liabilities | 387 | (2,533 | ) | |||||
Other - net | (1,107 | ) | (853 | ) | ||||
Total adjustments | 17,626 | 16,338 | ||||||
Net Cash Provided by Operating Activities | 28,944 | 27,150 | ||||||
Investing Activities | ||||||||
Construction and capital expenditures: | ||||||||
Capital expenditures | (13,619 | ) | (14,625 | ) | ||||
Interest during construction | (197 | ) | (119 | ) | ||||
Acquisitions, net of cash acquired | (551 | ) | (430 | ) | ||||
Dispositions | 807 | 76 | ||||||
Sales (purchases) of securities, net | 311 | 45 | ||||||
Other | (2 | ) | 28 | |||||
Net Cash Used in Investing Activities | (13,251 | ) | (15,025 | ) | ||||
Financing Activities | ||||||||
Net change in short-term borrowings with | ||||||||
original maturities of three months or less | - | (1,620 | ) | |||||
Issuance of long-term debt | 6,935 | 7,935 | ||||||
Repayment of long-term debt | (8,042 | ) | (1,298 | ) | ||||
Purchase of treasury stock | (8,374 | ) | - | |||||
Issuance of treasury stock | 460 | 216 | ||||||
Dividends paid | (7,738 | ) | (7,627 | ) | ||||
Other | 98 | (406 | ) | |||||
Net Cash Used in Financing Activities | (16,661 | ) | (2,800 | ) | ||||
Net (decrease) increase in cash and cash equivalents | (968 | ) | 9,325 | |||||
Cash and cash equivalents beginning of year | 3,185 | 1,437 | ||||||
Cash and Cash Equivalents End of Period | $ | 2,217 | $ | 10,762 |
Financial Data | |||||||||||||||||||||||
AT&T Inc. | |||||||||||||||||||||||
Supplementary Operating and Financial Data | |||||||||||||||||||||||
Dollars in millions except per share amounts | |||||||||||||||||||||||
Unaudited | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
9/30/2012 | 9/30/2011 | % Chg | 9/30/2012 | 9/30/2011 | % Chg | ||||||||||||||||||
Wireless | |||||||||||||||||||||||
Volumes (000) | |||||||||||||||||||||||
Total | 105,871 | 100,738 | 5.1 | % | |||||||||||||||||||
Postpaid | 69,747 | 68,614 | 1.7 | % | |||||||||||||||||||
Prepaid | 7,545 | 7,059 | 6.9 | % | |||||||||||||||||||
Reseller | 14,573 | 13,028 | 11.9 | % | |||||||||||||||||||
Connected Devices | 14,006 | 12,037 | 16.4 | % | |||||||||||||||||||
Wireless Net Adds (000) | |||||||||||||||||||||||
Total | 678 | 2,123 | -68.1 | % | 2,670 | 5,202 | -48.7 | % | |||||||||||||||
Postpaid | 151 | 319 | -52.7 | % | 658 | 712 | -7.6 | % | |||||||||||||||
Prepaid | 77 | 293 | -73.7 | % | 294 | 515 | -42.9 | % | |||||||||||||||
Reseller | 137 | 473 | -71.0 | % | 793 | 1,282 | -38.1 | % | |||||||||||||||
Connected Devices | 313 | 1,038 | -69.8 | % | 925 | 2,693 | -65.7 | % | |||||||||||||||
M&A Activity, Partitioned Customers and Other Adjs. | (13 | ) | - | - | (46 | ) | - | - | |||||||||||||||
Wireless Churn | |||||||||||||||||||||||
Postpaid Churn | 1.08 | % | 1.15 | % | -7 BP | 1.05 | % | 1.16 | % | -11 BP | |||||||||||||
Total Churn | 1.34 | % | 1.28 | % | 6 BP | 1.33 | % | 1.36 | % | -3 BP | |||||||||||||
Other | |||||||||||||||||||||||
Branded Computing Subscribers1 | 6,419 | 4,537 | 41.5 | % | |||||||||||||||||||
Licensed POPs (000,000) | 313 | 313 | 0.0 | % | |||||||||||||||||||
Wireline | |||||||||||||||||||||||
Voice | |||||||||||||||||||||||
Total Wireline Voice Connections | 35,821 | 40,098 | -10.7 | % | |||||||||||||||||||
Net Change | (1,020 | ) | (1,200 | ) | 15.0 | % | (3,191 | ) | (3,465 | ) | 7.9 | % | |||||||||||
Broadband | |||||||||||||||||||||||
Total Wireline Broadband Connections | 16,392 | 16,476 | -0.5 | % | |||||||||||||||||||
Net Change2 | (42 | ) | 3 | - | (35 | ) | 167 | - | |||||||||||||||
Video | |||||||||||||||||||||||
U-verse | 4,344 | 3,583 | 21.2 | % | |||||||||||||||||||
Satellite | 1,633 | 1,809 | -9.7 | % | |||||||||||||||||||
Total Video Connections | 5,977 | 5,392 | 10.8 | % | |||||||||||||||||||
Net Change | 147 | 133 | 10.5 | % | 421 | 475 | -11.4 | % | |||||||||||||||
Consumer Revenue Connections | |||||||||||||||||||||||
Broadband3 | 14,501 | 14,530 | -0.2 | % | |||||||||||||||||||
Video Connections4 | 5,954 | 5,381 | 10.6 | % | |||||||||||||||||||
Voice5 | 19,222 | 21,941 | -12.4 | % | |||||||||||||||||||
Total Consumer Revenue Connections | 39,677 | 41,852 | -5.2 | % | |||||||||||||||||||
Net Change | (518 | ) | (652 | ) | 20.6 | % | (1,589 | ) | (1,575 | ) | -0.9 | % | |||||||||||
AT&T Inc. | |||||||||||||||||||||||
Construction and capital expenditures | |||||||||||||||||||||||
Capital expenditures | $ | 4,877 | $ | 5,220 | -6.6 | % | $ | 13,619 | $ | 14,625 | -6.9 | % | |||||||||||
Interest during construction | $ | 67 | $ | 42 | 59.5 | % | $ | 197 | $ | 119 | 65.5 | % | |||||||||||
Dividends Declared per Share | $ | 0.44 | $ | 0.43 | 2.3 | % | $ | 1.32 | $ | 1.29 | 2.3 | % | |||||||||||
End of Period Common Shares Outstanding (000,000) | 5,707 | 5,926 | -3.7 | % | |||||||||||||||||||
Debt Ratio6 | 38.6 | % | 38.5 | % | 10 BP | ||||||||||||||||||
Total Employees | 241,130 | 256,210 | -5.9 | % | |||||||||||||||||||
1 | Branded Computing Subscribers includes tablets, tethering plans, aircards, mobile Wi-Fi hot spots and other data-only devices. | ||||||||||||||||||||||
2 | Prior year amounts restated to conform to current period reporting methodology. | ||||||||||||||||||||||
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 | Includes consumer U-verse Voice over Internet Protocol connections of 2,733 as of September 30, 2012. | ||||||||||||||||||||||
6 | Total long-term debt plus debt maturing within one year divided by total debt plus total stockholders' equity. | ||||||||||||||||||||||
Note: For the end of 3Q12, total switched access lines were 33,088, retail business switched access lines totaled 14,619, and wholesale | |||||||||||||||||||||||
and coin switched access lines totaled 1,980. |