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

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.

AT&T (T) 8-KOther Events