AT&T 8K Other Events | T 23 Apr 13

Financial Data

AT&T Inc.
Consolidated Statements of Income
Dollars in millions except per share amounts
Unaudited	Three Months Ended
		3/31/2013			3/31/2012			% Chg
Operating Revenues		$	31,356		$	31,822			-1.5	%

Operating Expenses
Cost of services and sales (exclusive of depreciation and amortization shown separately below)			12,554			12,817			-2.1	%
Selling, general and administrative			8,333			8,344			-0.1	%
Depreciation and amortization			4,529			4,560			-0.7	%
Total Operating Expenses			25,416			25,721			-1.2	%
Operating Income			5,940			6,101			-2.6	%
Interest Expense			827			859			-3.7	%
Equity in Net Income of Affiliates			185			223			-17.0	%
Other Income (Expense) - Net			32			52			-38.5	%
Income Before Income Taxes			5,330			5,517			-3.4	%
Income Tax Expense			1,557			1,865			-16.5	%
Net Income			3,773			3,652			3.3	%
Less: Net Income Attributable to Noncontrolling Interest			(73	)		(68	)		-7.4	%
Net Income Attributable to AT&T		$	3,700		$	3,584			3.2	%


Basic Earnings Per Share Attributable to AT&T		$	0.67		$	0.60			11.7	%
Weighted Average Common Shares Outstanding (000,000)			5,513			5,918			-6.8	%

Diluted Earnings Per Share Attributable to AT&T		$	0.67		$	0.60			11.7	%
Weighted Average Common Shares Outstanding with Dilution (000,000)			5,530			5,940			-6.9	%

Financial Data

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

Wireless	3/31/2013			3/31/2012			% Chg
Segment Operating Revenues
Data	$	5,125		$	4,235			21.0	%
Voice, text and other service		9,937			10,331			-3.8	%
Equipment		1,629			1,570			3.8	%
Total Segment Operating Revenues		16,691			16,136			3.4	%

Segment Operating Expenses
Operations and support		10,180			9,978			2.0	%
Depreciation and amortization		1,835			1,666			10.1	%
Total Segment Operating Expenses		12,015			11,644			3.2	%
Segment Operating Income		4,676			4,492			4.1	%
Equity in Net Income (Loss) of Affiliates		(18	)		(13	)		-38.5	%
Segment Income	$	4,658		$	4,479			4.0	%

Segment Operating Income Margin		28.0	%		27.8	%

Wireline
Segment Operating Revenues
Data	$	8,162		$	7,800			4.6	%
Voice		5,306			5,892			-9.9	%
Other		1,187			1,237			-4.0	%
Total Segment Operating Revenues		14,655			14,929			-1.8	%

Segment Operating Expenses
Operations and support		10,335			10,402			-0.6	%
Depreciation and amortization		2,688			2,808			-4.3	%
Total Segment Operating Expenses		13,023			13,210			-1.4	%
Segment Operating Income		1,632			1,719			-5.1	%
Equity in Net Income of Affiliates		1			-			-
Segment Income	$	1,633		$	1,719			-5.0	%

Segment Operating Income Margin		11.1	%		11.5	%

Advertising Solutions
Segment Operating Revenues	$	-		$	744			-

Segment Operating Expenses
Operations and support		-			547			-
Depreciation and amortization		-			77			-
Total Segment Operating Expenses		-			624			-
Segment Income	$	-		$	120			-

Segment Income Margin		-			16.1	%

Other
Segment Operating Revenues	$	10		$	13			-23.1	%
Segment Operating Expenses		378			243			55.6	%
Segment Operating Income (Loss)		(368	)		(230	)		-60.0	%
Equity in Net Income of Affiliates		202			236			-14.4	%
Segment Income (Loss)	$	(166	)	$	6			-

Financial Data

AT&T Inc.
Consolidated Balance Sheets
Dollars in millions
	03/31/2013			12/31/2012
	Unaudited

Assets
Current Assets
Cash and cash equivalents	$	3,875		$	4,868
Accounts receivable - net of allowances for
doubtful accounts of $547 and $547		12,100			12,657
Prepaid expenses		1,021			1,035
Deferred income taxes		980			1,036
Other current assets		2,396			3,110
Total current assets		20,372			22,706
Property, Plant and Equipment - Net		109,702			109,767
Goodwill		69,772			69,773
Licenses		53,507			52,352
Customer Lists and Relationships - Net		1,190			1,391
Other Intangible Assets - Net		5,022			5,032
Investments in and Advances to Equity Affiliates		4,998			4,581
Other Assets		6,431			6,713
Total Assets	$	270,994		$	272,315

Liabilities and Stockholders' Equity
Current Liabilities
Debt maturing within one year	$	3,446		$	3,486
Accounts payable and accrued liabilities		17,523			20,494
Advanced billing and customer deposits		4,167			4,225
Accrued taxes		2,210			1,026
Dividends payable		2,440			2,556
Total current liabilities		29,786			31,787
Long-Term Debt		70,686			66,358
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes		28,918			28,491
Postemployment benefit obligation		41,663			41,392
Other noncurrent liabilities		11,603			11,592
Total deferred credits and other noncurrent liabilities		82,184			81,475
Stockholders' Equity
Common stock		6,495			6,495
Additional paid-in capital		90,940			91,038
Retained earnings		23,787			22,481
Treasury stock		(38,568	)		(32,888	)
Accumulated other comprehensive income		5,344			5,236
Noncontrolling interest		340			333
Total stockholders' equity		88,338			92,695
Total Liabilities and Stockholders' Equity	$	270,994		$	272,315

Financial Data

AT&T Inc.
Consolidated Statements of Cash Flows
Dollars in millions
Unaudited	Three Months Ended March 31,
	2013			2012

Operating Activities
Net income	$	3,773		$	3,652
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization		4,529			4,560
Undistributed earnings from investments in equity affiliates		(185	)		(223	)
Provision for uncollectible accounts		262			328
Deferred income tax expense and noncurrent
unrecognized tax benefits		509			337
Net (gain) loss from sale of investments, net of impairments		(11	)		(9	)
Changes in operating assets and liabilities:
Accounts receivable		295			73
Other current assets		864			1,120
Accounts payable and accrued liabilities		(1,675	)		(1,655	)
Other - net		(162	)		(338	)
Total adjustments		4,426			4,193
Net Cash Provided by Operating Activities		8,199			7,845

Investing Activities
Construction and capital expenditures:
Capital expenditures		(4,252	)		(4,261	)
Interest during construction		(66	)		(65	)
Acquisitions, net of cash acquired		(1,045	)		(433	)
Dispositions		5			16
Sales (purchases) of securities, net		-			5
Other		1			1
Net Cash Used in Investing Activities		(5,357	)		(4,737	)

Financing Activities
Net change in short-term borrowings with
original maturities of three months or less		274			-
Issuance of other short-term borrowings		1,474			-
Issuance of long-term debt		4,875			2,986
Repayment of long-term debt		(1,791	)		(2,204	)
Purchase of treasury stock		(5,911	)		(2,066	)
Issuance of treasury stock		56			218
Dividends paid		(2,502	)		(2,606	)
Other		(310	)		(130	)
Net Cash Used in Financing Activities		(3,835	)		(3,802	)
Net decrease in cash and cash equivalents		(993	)		(694	)
Cash and cash equivalents beginning of year		4,868			3,045
Cash and Cash Equivalents End of Period	$	3,875		$	2,351

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
		3/31/2013			3/31/2012			% Chg

Wireless
Volumes
	Total		107,251			103,940			3.2	%
	Postpaid		70,749			69,403			1.9	%
	Prepaid		7,104			7,368			-3.6	%
	Reseller		14,702			13,869			6.0	%
	Connected Devices		14,696			13,300			10.5	%

Wireless Net Adds
	Total		291			726			-59.9	%
	Postpaid		296			187			58.3	%
	Prepaid		(184	)		125			-
	Reseller		(252	)		184			-
	Connected Devices		431			230			87.4	%
	M&A Activity, Partitioned Customers and Other Adjs.		3			(33	)		-

Wireless Churn
	Postpaid Churn		1.04	%		1.10	%	-6 BP
	Total Churn		1.38	%		1.47	%	-9 BP

Other
	Licensed POPs (000,000)		317			313			1.3	%

Wireline
Voice
	Total Wireline Voice Connections1		31,163			35,206			-11.5	%
	Net Change		(1,021	)		(1,126	)		9.3	%

Broadband
	Total Wireline Broadband Connections		16,514			16,530			-0.1	%
	Net Change		124			103			20.4	%

Video
	Total U-verse Video Connections		4,768			3,991			19.5	%
	Net Change		232			200			16.0	%

Consumer Revenue Connections
	Broadband2		14,686			14,595			0.6	%
	U-verse Video Connections1		4,755			3,983			19.4	%
	Voice1,3		17,960			20,534			-12.5	%
Total Consumer Revenue Connections1			37,401			39,112			-4.4	%
	Net Change		(266	)		(394	)		32.5	%

AT&T Inc.
	Construction and capital expenditures
	Capital expenditures	$	4,252		$	4,261			-0.2	%
	Interest during construction	$	66		$	65			1.5	%
	Dividends Declared per Share	$	0.45		$	0.44			2.3	%
	End of Period Common Shares Outstanding (000,000)		5,423			5,875			-7.7	%
	Debt Ratio4		45.6	%		38.4	%	720 BP
	Total Employees		243,340			252,330			-3.6	%

1	Prior year amounts restated to conform to current period reporting methodology.
2	Consumer wireline broadband connections include DSL lines, U-verse High Speed Internet access and satellite broadband.
3	Includes consumer U-verse Voice over Internet Protocol connections of 3,120 as of March 31, 2013.
4	Total long-term debt plus debt maturing within one year divided by total debt plus total stockholders' equity.
	Note: For the end of 1Q13, total switched access lines were 28,043, retail business switched access lines totaled 11,185, and wholesale,
	national mass markets and coin switched access lines totaled 2,018. Restated switched access lines do not include ISDN lines.

AT&T (T) 8-KOther Events