Financial Data | |||||||||||||||||||||||
AT&T Inc. | |||||||||||||||||||||||
Consolidated Statements of Income | |||||||||||||||||||||||
Dollars in millions except per share amounts | |||||||||||||||||||||||
Unaudited | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
9/30/2013 | 9/30/2012 | % Chg | 9/30/2013 | 9/30/2012 | % Chg | ||||||||||||||||||
Operating Revenues | $ | 32,158 | $ | 31,459 | 2.2 | % | $ | 95,589 | $ | 94,856 | 0.8 | % | |||||||||||
Operating Expenses | |||||||||||||||||||||||
Cost of services and sales (exclusive of depreciation and amortization shown separately below) | 13,403 | 12,602 | 6.4 | % | 39,227 | 37,673 | 4.1 | % | |||||||||||||||
Selling, general and administrative | 7,952 | 8,308 | -4.3 | % | 24,406 | 24,657 | -1.0 | % | |||||||||||||||
Depreciation and amortization | 4,615 | 4,512 | 2.3 | % | 13,715 | 13,571 | 1.1 | % | |||||||||||||||
Total Operating Expenses | 25,970 | 25,422 | 2.2 | % | 77,348 | 75,901 | 1.9 | % | |||||||||||||||
Operating Income | 6,188 | 6,037 | 2.5 | % | 18,241 | 18,955 | -3.8 | % | |||||||||||||||
Interest Expense | 829 | 824 | 0.6 | % | 2,481 | 2,624 | -5.4 | % | |||||||||||||||
Equity in Net Income of Affiliates | 91 | 182 | -50.0 | % | 494 | 537 | -8.0 | % | |||||||||||||||
Other Income (Expense) - Net | 50 | 47 | 6.4 | % | 370 | 122 | - | ||||||||||||||||
Income Before Income Taxes | 5,500 | 5,442 | 1.1 | % | 16,624 | 16,990 | -2.2 | % | |||||||||||||||
Income Tax Expense | 1,595 | 1,741 | -8.4 | % | 5,066 | 5,672 | -10.7 | % | |||||||||||||||
Net Income | 3,905 | 3,701 | 5.5 | % | 11,558 | 11,318 | 2.1 | % | |||||||||||||||
Less: Net Income Attributable to Noncontrolling Interest | (91 | ) | (66 | ) | -37.9 | % | (222 | ) | (197 | ) | -12.7 | % | |||||||||||
Net Income Attributable to AT&T | $ | 3,814 | $ | 3,635 | 4.9 | % | $ | 11,336 | $ | 11,121 | 1.9 | % | |||||||||||
Basic Earnings Per Share Attributable to AT&T | $ | 0.72 | $ | 0.63 | 14.3 | % | $ | 2.10 | $ | 1.90 | 10.5 | % | |||||||||||
Weighted Average Common Shares Outstanding (000,000) | 5,315 | 5,771 | -7.9 | % | 5,402 | 5,848 | -7.6 | % | |||||||||||||||
Diluted Earnings Per Share Attributable to AT&T | $ | 0.72 | $ | 0.63 | 14.3 | % | $ | 2.09 | $ | 1.90 | 10.0 | % | |||||||||||
Weighted Average Common Shares Outstanding with Dilution (000,000) | 5,331 | 5,792 | -8.0 | % | 5,419 | 5,869 | -7.7 | % | |||||||||||||||
Financial Data | |||||||||||||||||||
AT&T Inc. | |||||||||||||||||||
Statements of Segment Income | |||||||||||||||||||
Dollars in millions | |||||||||||||||||||
Unaudited | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
Wireless | 9/30/2013 | 9/30/2012 | % Chg | 9/30/2013 | 9/30/2012 | % Chg | |||||||||||||
Segment Operating Revenues | |||||||||||||||||||
Data | $ | 5,509 | $ | 4,686 | 17.6 | % | $ | 15,990 | $ | 13,392 | 19.4 | % | |||||||
Voice, text and other service | 9,951 | 10,220 | -2.6 | % | 29,902 | 30,845 | -3.1 | % | |||||||||||
Equipment | 2,020 | 1,726 | 17.0 | % | 5,570 | 4,884 | 14.0 | % | |||||||||||
Total Segment Operating Revenues | 17,480 | 16,632 | 5.1 | % | 51,462 | 49,121 | 4.8 | % | |||||||||||
Segment Operating Expenses | |||||||||||||||||||
Operations and support | 10,982 | 10,432 | 5.3 | % | 31,932 | 30,000 | 6.4 | % | |||||||||||
Depreciation and amortization | 1,875 | 1,730 | 8.4 | % | 5,553 | 5,092 | 9.1 | % | |||||||||||
Total Segment Operating Expenses | 12,857 | 12,162 | 5.7 | % | 37,485 | 35,092 | 6.8 | % | |||||||||||
Segment Operating Income | 4,623 | 4,470 | 3.4 | % | 13,977 | 14,029 | -0.4 | % | |||||||||||
Equity in Net Income (Loss) of Affiliates | (18 | ) | (17 | ) | -5.9 | % | (55 | ) | (45 | ) | -22.2 | % | |||||||
Segment Income | $ | 4,605 | $ | 4,453 | 3.4 | % | $ | 13,922 | $ | 13,984 | -0.4 | % | |||||||
Segment Operating Income Margin | 26.4 | % | 26.9 | % | 27.2 | % | 28.6 | % | |||||||||||
Wireline | |||||||||||||||||||
Segment Operating Revenues | |||||||||||||||||||
Data | $ | 8,457 | $ | 7,987 | 5.9 | % | $ | 25,019 | $ | 23,722 | 5.5 | % | |||||||
Voice | 5,023 | 5,563 | -9.7 | % | 15,470 | 17,151 | -9.8 | % | |||||||||||
Other | 1,190 | 1,264 | -5.9 | % | 3,609 | 3,777 | -4.4 | % | |||||||||||
Total Segment Operating Revenues | 14,670 | 14,814 | -1.0 | % | 44,098 | 44,650 | -1.2 | % | |||||||||||
Segment Operating Expenses | |||||||||||||||||||
Operations and support | 10,385 | 10,246 | 1.4 | % | 31,137 | 30,849 | 0.9 | % | |||||||||||
Depreciation and amortization | 2,736 | 2,774 | -1.4 | % | 8,146 | 8,348 | -2.4 | % | |||||||||||
Total Segment Operating Expenses | 13,121 | 13,020 | 0.8 | % | 39,283 | 39,197 | 0.2 | % | |||||||||||
Segment Operating Income | 1,549 | 1,794 | -13.7 | % | 4,815 | 5,453 | -11.7 | % | |||||||||||
Equity in Net Income (Loss) of Affiliates | - | - | - | 1 | (1 | ) | - | ||||||||||||
Segment Income | $ | 1,549 | $ | 1,794 | -13.7 | % | $ | 4,816 | $ | 5,452 | -11.7 | % | |||||||
Segment Operating Income Margin | 10.6 | % | 12.1 | % | 10.9 | % | 12.2 | % | |||||||||||
Advertising Solutions | |||||||||||||||||||
Segment Operating Revenues | $ | - | $ | - | - | $ | - | $ | 1,049 | - | |||||||||
Segment Operating Expenses | |||||||||||||||||||
Operations and support | - | - | - | - | 773 | - | |||||||||||||
Depreciation and amortization | - | - | - | - | 106 | - | |||||||||||||
Total Segment Operating Expenses | - | - | - | - | 879 | - | |||||||||||||
Segment Income | $ | - | $ | - | - | $ | - | $ | 170 | - | |||||||||
Segment Income Margin | - | - | - | 16.2 | % | ||||||||||||||
Other | |||||||||||||||||||
Segment Operating Revenues | $ | 8 | $ | 13 | -38.5 | % | $ | 29 | $ | 36 | -19.4 | % | |||||||
Segment Operating Expenses | (8 | ) | 240 | - | 580 | 733 | -20.9 | % | |||||||||||
Segment Operating Income (Loss) | 16 | (227 | ) | - | (551 | ) | (697 | ) | 20.9 | % | |||||||||
Equity in Net Income of Affiliates | 109 | 199 | -45.2 | % | 548 | 583 | -6.0 | % | |||||||||||
Segment Income (Loss) | $ | 125 | $ | (28 | ) | - | $ | (3 | ) | $ | (114 | ) | 97.4 | % | |||||
Financial Data | |||||||
AT&T Inc. | |||||||
Consolidated Balance Sheets | |||||||
Dollars in millions | |||||||
9/30/13 | 12/31/12 | ||||||
Unaudited | |||||||
Assets | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 1,371 | $ | 4,868 | |||
Accounts receivable - net of allowances for doubtful accounts of $491 and $547 | 12,444 | 12,657 | |||||
Prepaid expenses | 1,022 | 1,035 | |||||
Deferred income taxes | 682 | 1,036 | |||||
Other current assets | 2,916 | 3,110 | |||||
Total current assets | 18,435 | 22,706 | |||||
Property, Plant and Equipment - Net | 112,424 | 109,767 | |||||
Goodwill | 70,014 | 69,773 | |||||
Licenses | 56,304 | 52,352 | |||||
Customer Lists and Relationships - Net | 876 | 1,391 | |||||
Other Intangible Assets - Net | 5,020 | 5,032 | |||||
Investments in and Advances to Equity Affiliates | 3,949 | 4,581 | |||||
Other Assets | 7,577 | 6,713 | |||||
Total Assets | $ | 274,599 | $ | 272,315 | |||
Liabilities and Stockholders' Equity | |||||||
Current Liabilities | |||||||
Debt maturing within one year | $ | 7,873 | $ | 3,486 | |||
Accounts payable and accrued liabilities | 20,433 | 20,494 | |||||
Advanced billing and customer deposits | 4,013 | 4,225 | |||||
Accrued taxes | 1,488 | 1,026 | |||||
Dividends payable | 2,376 | 2,556 | |||||
Total current liabilities | 36,183 | 31,787 | |||||
Long-Term Debt | 68,350 | 66,358 | |||||
Deferred Credits and Other Noncurrent Liabilities | |||||||
Deferred income taxes | 30,666 | 28,491 | |||||
Postemployment benefit obligation | 42,036 | 41,392 | |||||
Other noncurrent liabilities | 11,234 | 11,592 | |||||
Total deferred credits and other noncurrent liabilities | 83,936 | 81,475 | |||||
Stockholders' Equity | |||||||
Common stock | 6,495 | 6,495 | |||||
Additional paid-in capital | 91,021 | 91,038 | |||||
Retained earnings | 26,648 | 22,481 | |||||
Treasury stock | (43,731 | ) | (32,888 | ) | |||
Accumulated other comprehensive income | 5,282 | 5,236 | |||||
Noncontrolling interest | 415 | 333 | |||||
Total stockholders' equity | 86,130 | 92,695 | |||||
Total Liabilities and Stockholders' Equity | $ | 274,599 | $ | 272,315 |
Financial Data | |||||||
AT&T Inc. | |||||||
Consolidated Statements of Cash Flows | |||||||
Dollars in millions | |||||||
Unaudited | Nine Months Ended September 30, | ||||||
2013 | 2012 | ||||||
Operating Activities | |||||||
Net income | $ | 11,558 | $ | 11,318 | |||
Adjustments to reconcile net income to | |||||||
net cash provided by operating activities: | |||||||
Depreciation and amortization | 13,715 | 13,571 | |||||
Undistributed earnings from investments in equity affiliates | (232 | ) | (483 | ) | |||
Provision for uncollectible accounts | 653 | 835 | |||||
Deferred income tax expense and noncurrent | |||||||
unrecognized tax benefits | 2,389 | 3,441 | |||||
Net (gain) loss from sale of investments, net of impairments | (272 | ) | (27 | ) | |||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (440 | ) | (571 | ) | |||
Other current assets | 520 | 1,581 | |||||
Accounts payable and accrued liabilities | (420 | ) | (156 | ) | |||
Retirement benefit funding | (175 | ) | - | ||||
Other - net | (417 | ) | (853 | ) | |||
Total adjustments | 15,321 | 17,338 | |||||
Net Cash Provided by Operating Activities | 26,879 | 28,656 | |||||
Investing Activities | |||||||
Construction and capital expenditures: | |||||||
Capital expenditures | (15,565 | ) | (13,619 | ) | |||
Interest during construction | (213 | ) | (197 | ) | |||
Acquisitions, net of cash acquired | (4,025 | ) | (551 | ) | |||
Dispositions | 846 | 807 | |||||
Sales (purchases) of securities, net | - | 311 | |||||
Return of advances to and investments in equity affiliates | 301 | - | |||||
Other | (4 | ) | (2 | ) | |||
Net Cash Used in Investing Activities | (18,660 | ) | (13,251 | ) | |||
Financing Activities | |||||||
Net change in short-term borrowings with | |||||||
original maturities of three months or less | 1,851 | - | |||||
Issuance of other short-term borrowings | 1,476 | - | |||||
Repayment of other short-term borrowings | (1,476 | ) | - | ||||
Issuance of long-term debt | 6,416 | 6,935 | |||||
Repayment of long-term debt | (2,131 | ) | (8,042 | ) | |||
Purchase of treasury stock | (11,134 | ) | (8,374 | ) | |||
Issuance of treasury stock | 108 | 460 | |||||
Dividends paid | (7,325 | ) | (7,738 | ) | |||
Other | 499 | 98 | |||||
Net Cash Used in Financing Activities | (11,716 | ) | (16,661 | ) | |||
Net decrease in cash and cash equivalents | (3,497 | ) | (1,256 | ) | |||
Cash and cash equivalents beginning of year | 4,868 | 3,045 | |||||
Cash and Cash Equivalents End of Period | $ | 1,371 | $ | 1,789 |
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 | Nine Months Ended | |||||||||||||||||||
9/30/2013 | 9/30/2012 | % Chg | 9/30/2013 | 9/30/2012 | % Chg | ||||||||||||||||
Wireless | |||||||||||||||||||||
Subscribers and Connections | |||||||||||||||||||||
Total | 109,460 | 105,871 | 3.4 | % | |||||||||||||||||
Postpaid | 72,032 | 69,747 | 3.3 | % | |||||||||||||||||
Prepaid | 7,425 | 7,545 | -1.6 | % | |||||||||||||||||
Reseller | 14,089 | 14,573 | -3.3 | % | |||||||||||||||||
Connected Devices | 15,914 | 14,006 | 13.6 | % | |||||||||||||||||
Wireless Net Adds | |||||||||||||||||||||
Total | 989 | 678 | 45.9 | % | 1,912 | 2,670 | -28.4 | % | |||||||||||||
Postpaid | 363 | 151 | - | 1,210 | 658 | 83.9 | % | ||||||||||||||
Prepaid | 192 | 77 | - | 19 | 294 | -93.5 | % | ||||||||||||||
Reseller | (285 | ) | 137 | - | (951 | ) | 793 | - | |||||||||||||
Connected Devices | 719 | 313 | - | 1,634 | 925 | 76.6 | % | ||||||||||||||
M&A Activity, Partitioned Customers and Other Adjs. | 587 | (13 | ) | - | 591 | (46 | ) | - | |||||||||||||
Wireless Churn | |||||||||||||||||||||
Postpaid Churn | 1.07 | % | 1.08 | % | -1 BP | 1.04 | % | 1.05 | % | -1 BP | |||||||||||
Total Churn | 1.31 | % | 1.34 | % | -3 BP | 1.35 | % | 1.33 | % | 2 BP | |||||||||||
Other | |||||||||||||||||||||
Licensed POPs (000,000) | 317 | 313 | 1.3 | % | |||||||||||||||||
Wireline | |||||||||||||||||||||
Voice | |||||||||||||||||||||
Total Wireline Voice Connections1 | 29,296 | 33,176 | -11.7 | % | |||||||||||||||||
Net Change | (932 | ) | (995 | ) | 6.3 | % | (2,888 | ) | (3,156 | ) | 8.5 | % | |||||||||
Broadband | |||||||||||||||||||||
Total Wireline Broadband Connections | 16,427 | 16,392 | 0.2 | % | |||||||||||||||||
Net Change | (26 | ) | (42 | ) | 38.1 | % | 37 | (35 | ) | - | |||||||||||
Video | |||||||||||||||||||||
Total U-verse Video Connections | 5,266 | 4,344 | 21.2 | % | |||||||||||||||||
Net Change | 265 | 198 | 33.8 | % | 730 | 553 | 32.0 | % | |||||||||||||
Consumer Revenue Connections | |||||||||||||||||||||
Broadband2 | 14,665 | 14,501 | 1.1 | % | |||||||||||||||||
U-verse Video Connections1 | 5,249 | 4,333 | 21.1 | % | |||||||||||||||||
Voice1,3 | 16,749 | 19,219 | -12.9 | % | |||||||||||||||||
Total Consumer Revenue Connections1 | 36,663 | 38,053 | -3.7 | % | |||||||||||||||||
Net Change | (345 | ) | (466 | ) | 26.0 | % | (1,004 | ) | (1,453 | ) | 30.9 | % | |||||||||
AT&T Inc. | |||||||||||||||||||||
Construction and capital expenditures | |||||||||||||||||||||
Capital expenditures | $ | 5,900 | $ | 4,877 | 21.0 | % | $ | 15,565 | $ | 13,619 | 14.3 | % | |||||||||
Interest during construction | $ | 73 | $ | 67 | 9.0 | % | $ | 213 | $ | 197 | 8.1 | % | |||||||||
Dividends Declared per Share | $ | 0.45 | $ | 0.44 | 2.3 | % | $ | 1.35 | $ | 1.32 | 2.3 | % | |||||||||
End of Period Common Shares Outstanding (000,000) | 5,280 | 5,707 | -7.5 | % | |||||||||||||||||
Debt Ratio4 | 46.9 | % | 38.6 | % | 830 BP | ||||||||||||||||
Total Employees | 246,740 | 241,130 | 2.3 | % | |||||||||||||||||
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 3,616 as of September 30, 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 3Q13, total switched access lines were 25,680, retail business switched access lines totaled 10,633, and wholesale, | |||||||||||||||||||||
�� national mass markets and coin switched access lines totaled 1,914. Restated switched access lines do not include ISDN lines. |