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										Twelve Months Ended
		12/31/2012			12/31/2011			% Chg			12/31/2012			12/31/2011			% Chg
Operating Revenues
Wireless service		$	14,949		$	14,347			4.2	%	$	59,186		$	56,726			4.3	%
Data			8,103			7,581			6.9	%		31,798			29,560			7.6	%
Voice			5,464			5,994			-8.8	%		22,619			25,126			-10.0	%
Directory			-			781			-			1,049			3,293			-68.1	%
Other			4,062			3,800			6.9	%		12,782			12,018			6.4	%
Total Operating Revenues			32,578			32,503			0.2	%		127,434			126,723			0.6	%
Operating Expenses
Cost of services and sales (exclusive of depreciation and      amortization shown separately below)			17,552			16,865			4.1	%		55,215			54,836			0.7	%
Selling, general and administrative			16,412			17,145			-4.3	%		41,079			41,382			-0.7	%
Impairment of intangible assets			-			2,910			-			-			2,910			-
Depreciation and amortization			4,572			4,573			-			18,143			18,377			-1.3	%
Total Operating Expenses			38,536			41,493			-7.1	%		114,437			117,505			-2.6	%
Operating Income (Loss)			(5,958	)		(8,990	)		33.7	%		12,997			9,218			41.0	%
Interest Expense			820			952			-13.9	%		3,444			3,535			-2.6	%
Equity in Net Income of Affiliates			215			135			59.3	%		752			784			-4.1	%
Other Income (Expense) - Net			12			117			-89.7	%		134			249			-46.2	%
Income (Loss) Before Income Taxes			(6,551	)		(9,690	)		32.4	%		10,439			6,716			55.4	%
Income Tax (Benefit) Expense			(2,772	)		(3,062	)		9.5	%		2,900			2,532			14.5	%
Net Income (Loss)			(3,779	)		(6,628	)		43.0	%		7,539			4,184			80.2	%
Less: Net Income Attributable to Noncontrolling Interest			(78	)		(50	)		-56.0	%		(275	)		(240	)		-14.6	%
Net Income (Loss) Attributable to AT&T		$	(3,857	)	$	(6,678	)		42.2	%	$	7,264		$	3,944			84.2	%
Basic Earnings (Loss) Per Share Attributable to AT&T		$	(0.68	)	$	(1.12	)		39.3	%	$	1.25		$	0.66			89.4	%
Weighted Average Common      Shares Outstanding (000,000)			5,661			5,933			-4.6	%		5,801			5,928			-2.1	%
Diluted Earnings (Loss) Per Share Attributable to AT&T		$	(0.68	)	$	(1.12	)		39.3	%	$	1.25		$	0.66			89.4	%
Weighted Average Common      Shares Outstanding with Dilution (000,000)			5,680			5,955			-4.6	%		5,821			5,950			-2.2	%

Financial Data
AT&T Inc.
Statements of Segment Income
Dollars in millions
Unaudited
	Three Months Ended									Twelve Months Ended
Wireless	12/31/2012			12/31/2011			% Chg			12/31/2012			12/31/2011			% Chg
Segment Operating Revenues
Service	$	14,949		$	14,347			4.2	%	$	59,186		$	56,726			4.3	%
Equipment		2,693			2,349			14.6	%		7,577			6,489			16.8	%
Total Segment Operating Revenues		17,642			16,696			5.7	%		66,763			63,215			5.6	%
Segment Operating Expenses
Operations and support		13,296			12,513			6.3	%		43,296			41,282			4.9	%
Depreciation and amortization		1,781			1,588			12.2	%		6,873			6,329			8.6	%
Total Segment Operating Expenses		15,077			14,101			6.9	%		50,169			47,611			5.4	%
Segment Operating Income		2,565			2,595			-1.2	%		16,594			15,604			6.3	%
Equity in Net Income (Loss) of Affiliates		(17	)		(10	)		-70.0	%		(62	)		(29	)		-
Segment Income	$	2,548		$	2,585			-1.4	%	$	16,532		$	15,575			6.1	%
Segment Operating Income Margin		14.5	%		15.5	%					24.9	%		24.7	%
Wireline
Segment Operating Revenues
Data	$	8,103		$	7,581			6.9	%	$	31,798		$	29,560			7.6	%
Voice		5,464			5,994			-8.8	%		22,619			25,126			-10.0	%
Other		1,355			1,429			-5.2	%		5,150			5,454			-5.6	%
Total Segment Operating Revenues		14,922			15,004			-0.5	%		59,567			60,140			-1.0	%
Segment Operating Expenses
Operations and support		10,354			10,354			-			41,207			41,360			-0.4	%
Depreciation and amortization		2,775			2,889			-3.9	%		11,123			11,615			-4.2	%
Total Segment Operating Expenses		13,129			13,243			-0.9	%		52,330			52,975			-1.2	%
Segment Operating Income		1,793			1,761			1.8	%		7,237			7,165			1.0	%
Equity in Net Income (Loss) of Affiliates		(1	)		-			-			(2	)		-			-
Segment Income	$	1,792		$	1,761			1.8	%	$	7,235		$	7,165			1.0	%
Segment Operating Income Margin		12.0	%		11.7	%					12.1	%		11.9	%
Advertising Solutions
Segment Operating Revenues	$	-		$	781			-		$	1,049		$	3,293			-68.1	%
Segment Operating Expenses
Operations and support		-			558			-			773			2,265			-65.9	%
Impairment of Intangible Assets		-			2,910			-			-			2,910			-
Depreciation and amortization		-			85			-			106			386			-72.5	%
Total Segment Operating Expenses		-			3,553			-			879			5,561			-84.2	%
Segment Income (Loss)	$	-		$	(2,772	)		-		$	170		$	(2,268	)		-
Segment Income Margin		-			-						16.2	%		(68.9	)%
Other
Segment Operating Revenues	$	14		$	22			-36.4	%	$	55		$	75			-26.7	%
Segment Operating Expenses		336			4,316			-92.2	%		1,065			5,078			-79.0	%
Segment Operating Income (Loss)		(322	)		(4,294	)		92.5	%		(1,010	)		(5,003	)		79.8	%
Equity in Net Income of Affiliates		233			145			60.7	%		816			813			0.4	%
Segment Income (Loss)	$	(89	)	$	(4,149	)		97.9	%	$	(194	)	$	(4,190	)		95.4	%

Financial Data
AT&T Inc.
Consolidated Balance Sheets
Dollars in millions except per share amounts
Unaudited	December 31,
	2012			2011
Assets
Current Assets
Cash and cash equivalents	$	4,868		$	3,045
Accounts receivable - net of allowances for
doubtful accounts of $547 and $878		12,657			13,231
Prepaid expenses		1,035			1,102
Deferred income taxes		1,036			1,470
Other current assets		3,110			4,137
Total current assets		22,706			22,985
Property, Plant and Equipment - Net		109,767			107,087
Goodwill		69,773			70,842
Licenses		52,352			51,374
Customer Lists and Relationships - Net		1,391			2,757
Other Intangible Assets - Net		5,032			5,212
Investments in and Advances to Equity Affiliates		4,581			3,718
Other Assets		6,713			6,467
Total Assets	$	272,315		$	270,442
Liabilities and Stockholders' Equity
Current Liabilities
Debt maturing within one year	$	3,486		$	3,453
Accounts payable and accrued liabilities		20,911			19,956
Advanced billing and customer deposits		3,808			3,872
Accrued taxes		1,026			1,003
Dividends payable		2,556			2,608
Total current liabilities		31,787			30,892
Long-Term Debt		66,358			61,300
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes		28,491			25,748
Postemployment benefit obligation		41,392			34,011
Other noncurrent liabilities		11,592			12,694
Total deferred credits and other noncurrent liabilities		81,475			72,453
Stockholders' Equity
Common stock		6,495			6,495
Additional paid-in capital		91,038			91,156
Retained earnings		22,481			25,453
Treasury stock		(32,888	)		(20,750	)
Accumulated other comprehensive income		5,236			3,180
Noncontrolling interest		333			263
Total stockholders' equity		92,695			105,797
Total Liabilities and Stockholders' Equity	$	272,315		$	270,442

Financial Data
AT&T Inc.
Consolidated Statements of Cash Flows
Dollars in millions
Unaudited
	2012			2011			2010
Operating Activities
Net income	$	7,539		$	4,184		$	20,179
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization		18,143			18,377			19,379
Undistributed earnings from investments in equity affiliates		(615	)		(623	)		(603	)
Provision for uncollectible accounts		1,117			1,136			1,334
Deferred income tax expense and noncurrent
unrecognized tax benefits		1,285			2,937			(3,280	)
Net (gain) loss from sale of investments, net of impairments		(19	)		(89	)		(802	)
Impairment of intangible assets		-			2,910			85
Remeasurement of pension and postretirement benefits		9,994			6,280			2,521
Income from discontinued operations		-			-			(779	)
Changes in operating assets and liabilities:
Accounts receivable		(1,365	)		(1,164	)		(101	)
Other current assets		1,017			(397	)		(185	)
Accounts payable and accrued liabilities		1,798			(341	)		(1,230	)
Retirement benefit funding		-			(1,000	)		-
Other - net		282			2,533			(1,296	)
Total adjustments		31,637			30,559			15,043
Net Cash Provided by Operating Activities		39,176			34,743			35,222
Investing Activities
Construction and capital expenditures:
Capital expenditures		(19,465	)		(20,110	)		(19,530	)
Interest during construction		(263	)		(162	)		(772	)
Acquisitions, net of cash acquired		(828	)		(2,368	)		(2,906	)
Dispositions		812			1,301			1,830
Sales (purchases) of securities, net		65			62			(100	)
Other		(1	)		27			29
Net Cash Used in Investing Activities		(19,680	)		(21,250	)		(21,449	)
Financing Activities
Net change in short-term borrowings with
original maturities of three months or less		1			(1,625	)		1,592
Issuance of long-term debt		13,486			7,936			2,235
Repayment of long-term debt		(8,733	)		(7,574	)		(9,294	)
Purchase of treasury stock		(12,752	)		-			-
Issuance of treasury stock		477			237			50
Dividends paid		(10,241	)		(10,172	)		(9,916	)
Other		89			(451	)		(516	)
Net Cash Used in Financing Activities		(17,673	)		(11,649	)		(15,849	)
Net increase (decrease) in cash and cash equivalents		1,823			1,844			(2,076	)
Cash and cash equivalents beginning of year		3,045			1,201			3,277
Cash and Cash Equivalents End of Year	$	4,868		$	3,045		$	1,201

Financial Data
AT&T Inc.
Supplementary Operating and Financial Data
Dollars in millions except per share amounts, subscribers and connections in (000s)
Unaudited		Three Months Ended									Twelve Months Ended
		12/31/2012			12/31/2011			% Chg			12/31/2012			12/31/2011			% Chg
Wireless
Volumes
	Total											106,957			103,247			3.6	%
	Postpaid											70,497			69,309			1.7	%
	Prepaid											7,328			7,225			1.4	%
	Reseller											14,875			13,644			9.0	%
	Connected Devices											14,257			13,069			9.1	%
Wireless Net Adds
	Total		1,094			2,497			-56.2	%		3,764			7,699			-51.1	%
	Postpaid		780			717			8.8	%		1,438			1,429			0.6	%
	Prepaid		(166	)		159			-			128			674			-81.0	%
	Reseller		234			592			-60.5	%		1,027			1,874			-45.2	%
	Connected Devices		246			1,029			-76.1	%		1,171			3,722			-68.5	%
	M&A Activity, Partitioned Customers and Other Adjs.		(8	)		12			-			(54	)		12			-
Wireless Churn
	Postpaid Churn		1.19	%		1.21	%	-2 BP				1.09	%		1.18	%	-9 BP
	Total Churn		1.42	%		1.39	%	3 BP				1.35	%		1.37	%	-2 BP
Other
	Branded Computing Subscribers1											6,429			5,105			25.9	%
	Licensed POPs (000,000)											313			313			-
Wireline
Voice
	Total Wireline Voice Connections											34,792			39,012			-10.8	%
	Net Change		(1,029	)		(1,086	)		5.2	%		(4,220	)		(4,551	)		7.3	%
Broadband
	Total Wireline Broadband Connections											16,390			16,427			-0.2	%
	Net Change2		(2	)		(49	)		95.9	%		(37	)		118			-
Video
	U-verse											4,536			3,791			19.7	%
	Satellite											1,600			1,765			-9.3	%
	Total Video Connections											6,136			5,556			10.4	%
	Net Change		159			164			-3.0	%		580			639			-9.2	%
Consumer Revenue Connections
	Broadband3											14,531			14,492			0.3	%
	Video Connections4											6,114			5,542			10.3	%
	Voice5											18,614			21,232			-12.3	%
Total Consumer Revenue Connections												39,259			41,266			-4.9	%
	Net Change		(418	)		(586	)		28.7	%		(2,007	)		(2,161	)		7.1	%
AT&T Inc.
	Construction and capital expenditures
	Capital expenditures	$	5,846		$	5,485			6.6	%	$	19,465		$	20,110			-3.2	%
	Interest during construction	$	66		$	43			53.5	%	$	263		$	162			62.3	%
	Dividends Declared per Share	$	0.45		$	0.44			2.3	%	$	1.77		$	1.73			2.3	%
	End of Period Common Shares Outstanding (000,000)											5,581			5,927			-5.8	%
	Debt Ratio6											43.0	%		38.0	%	500 BP
	Total Employees											241,810			256,420			-5.7	%
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 2,905 as of December 31, 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 4Q12, total switched access lines were 31,887, retail business switched access lines totaled 14,274, and wholesale
	and coin switched access lines totaled 1,904.