Financial Data | ||||||||||||||||||||||||
AT&T Inc. | ||||||||||||||||||||||||
Consolidated Statements of Income | ||||||||||||||||||||||||
Dollars in millions except per share amounts | �� | |||||||||||||||||||||||
Unaudited | Three Months Ended | Six Months Ended | ||||||||||||||||||||||
6/30/2014 | 6/30/2013 | % Chg | 6/30/2014 | 6/30/2013 | % Chg | |||||||||||||||||||
Operating Revenues | $ | 32,575 | $ | 32,075 | 1.6 | % | $ | 65,051 | $ | 63,431 | 2.6 | % | ||||||||||||
Operating Expenses | ||||||||||||||||||||||||
Cost of services and sales (exclusive of depreciation and amortization shown separately below) | 14,212 | 13,270 | 7.1 | % | 27,533 | 25,824 | 6.6 | % | ||||||||||||||||
Selling, general and administrative | 8,197 | 8,121 | 0.9 | % | 16,457 | 16,454 | - | |||||||||||||||||
Depreciation and amortization | 4,550 | 4,571 | -0.5 | % | 9,167 | 9,100 | 0.7 | % | ||||||||||||||||
Total Operating Expenses | 26,959 | 25,962 | 3.8 | % | 53,157 | 51,378 | 3.5 | % | ||||||||||||||||
Operating Income | 5,616 | 6,113 | -8.1 | % | 11,894 | 12,053 | -1.3 | % | ||||||||||||||||
Interest Expense | 881 | 825 | 6.8 | % | 1,741 | 1,652 | 5.4 | % | ||||||||||||||||
Equity in Net Income of Affiliates | 102 | 218 | -53.2 | % | 190 | 403 | -52.9 | % | ||||||||||||||||
Other Income (Expense) - Net | 1,269 | 288 | - | 1,414 | 320 | - | ||||||||||||||||||
Income Before Income Taxes | 6,106 | 5,794 | 5.4 | % | 11,757 | 11,124 | 5.7 | % | ||||||||||||||||
Income Tax Expense | 2,485 | 1,914 | 29.8 | % | 4,402 | 3,471 | 26.8 | % | ||||||||||||||||
Net Income | 3,621 | 3,880 | -6.7 | % | 7,355 | 7,653 | -3.9 | % | ||||||||||||||||
Less: Net Income Attributable to Noncontrolling Interest | (74 | ) | (58 | ) | -27.6 | % | (156 | ) | (131 | ) | -19.1 | % | ||||||||||||
Net Income Attributable to AT&T | $ | 3,547 | $ | 3,822 | -7.2 | % | $ | 7,199 | $ | 7,522 | -4.3 | % | ||||||||||||
Basic Earnings Per Share Attributable to AT&T | $ | 0.68 | $ | 0.71 | -4.2 | % | $ | 1.38 | $ | 1.38 | - | |||||||||||||
Weighted Average Common Shares Outstanding (000,000) | 5,204 | 5,381 | -3.3 | % | 5,213 | 5,446 | -4.3 | % | ||||||||||||||||
Diluted Earnings Per Share Attributable to AT&T | $ | 0.68 | $ | 0.71 | -4.2 | % | $ | 1.38 | $ | 1.38 | - | |||||||||||||
Weighted Average Common Shares Outstanding with Dilution (000,000) | 5,220 | 5,397 | -3.3 | % | 5,229 | 5,463 | -4.3 | % | ||||||||||||||||
Financial Data | ||||||||||||||||||||||||
AT&T Inc. | ||||||||||||||||||||||||
Statements of Segment Income | ||||||||||||||||||||||||
Dollars in millions | ||||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
Wireless | 6/30/2014 | 6/30/2013 | % Chg | 6/30/2014 | 6/30/2013 | % Chg | ||||||||||||||||||
Segment Operating Revenues | ||||||||||||||||||||||||
Service | $ | 15,148 | $ | 15,370 | -1.4 | % | $ | 30,535 | $ | 30,432 | 0.3 | % | ||||||||||||
Equipment | 2,782 | 1,921 | 44.8 | % | 5,261 | 3,550 | 48.2 | % | ||||||||||||||||
Total Segment Operating Revenues | 17,930 | 17,291 | 3.7 | % | 35,796 | �� | 33,982 | 5.3 | % | |||||||||||||||
Segment Operating Expenses | ||||||||||||||||||||||||
Operations and support | 11,568 | 10,770 | 7.4 | % | 22,450 | 20,950 | 7.2 | % | ||||||||||||||||
Depreciation and amortization | 2,035 | 1,843 | 10.4 | % | 3,966 | 3,678 | 7.8 | % | ||||||||||||||||
Total Segment Operating Expenses | 13,603 | 12,613 | 7.8 | % | 26,416 | 24,628 | 7.3 | % | ||||||||||||||||
Segment Operating Income | 4,327 | 4,678 | -7.5 | % | 9,380 | 9,354 | 0.3 | % | ||||||||||||||||
Equity in Net Income (Loss) of Affiliates | (29 | ) | (19 | ) | -52.6 | % | (49 | ) | (37 | ) | -32.4 | % | ||||||||||||
Segment Income | $ | 4,298 | $ | 4,659 | -7.7 | % | $ | 9,331 | $ | 9,317 | 0.2 | % | ||||||||||||
Segment Operating Income Margin | 24.1 | % | 27.1 | % | 26.2 | % | 27.5 | % | ||||||||||||||||
Wireline | ||||||||||||||||||||||||
Segment Operating Revenues | ||||||||||||||||||||||||
Service | $ | 14,408 | $ | 14,482 | -0.5 | % | $ | 28,797 | $ | 28,863 | -0.2 | % | ||||||||||||
Equipment | 229 | 291 | -21.3 | % | 441 | 565 | -21.9 | % | ||||||||||||||||
Total Segment Operating Revenues | 14,637 | 14,773 | -0.9 | % | 29,238 | 29,428 | -0.6 | % | ||||||||||||||||
Segment Operating Expenses | ||||||||||||||||||||||||
Operations and support | 10,700 | 10,417 | 2.7 | % | 21,157 | 20,752 | 2.0 | % | ||||||||||||||||
Depreciation and amortization | 2,514 | 2,722 | -7.6 | % | 5,198 | 5,410 | -3.9 | % | ||||||||||||||||
Total Segment Operating Expenses | 13,214 | 13,139 | 0.6 | % | 26,355 | 26,162 | 0.7 | % | ||||||||||||||||
Segment Operating Income | 1,423 | 1,634 | -12.9 | % | 2,883 | 3,266 | -11.7 | % | ||||||||||||||||
Equity in Net Income of Affiliates | - | - | - | 1 | 1 | - | ||||||||||||||||||
Segment Income | $ | 1,423 | $ | 1,634 | -12.9 | % | $ | 2,884 | $ | 3,267 | -11.7 | % | ||||||||||||
Segment Operating Income Margin | 9.7 | % | 11.1 | % | 9.9 | % | 11.1 | % |
Financial Data | ||||||||
AT&T Inc. | ||||||||
Consolidated Balance Sheets | ||||||||
Dollars in millions | ||||||||
6/30/14 | 12/31/13 | |||||||
Unaudited | ||||||||
Assets | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 11,305 | $ | 3,339 | ||||
Accounts receivable - net of allowances for doubtful accounts of $461 and $483 | 13,001 | 12,918 | ||||||
Prepaid expenses | 928 | 960 | ||||||
Deferred income taxes | 1,180 | 1,199 | ||||||
Other current assets | 6,698 | 4,780 | ||||||
Total current assets | 33,112 | 23,196 | ||||||
Property, Plant and Equipment - Net | 114,360 | 110,968 | ||||||
Goodwill | 70,094 | 69,273 | ||||||
Licenses | 59,655 | 56,433 | ||||||
Other Intangible Assets - Net | 6,380 | 5,779 | ||||||
Investments in Equity Affiliates | 159 | 3,860 | ||||||
Other Assets | 9,706 | 8,278 | ||||||
Total Assets | $ | 293,466 | $ | 277,787 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current Liabilities | ||||||||
Debt maturing within one year | $ | 10,482 | $ | 5,498 | ||||
Accounts payable and accrued liabilities | 22,966 | 21,107 | ||||||
Advanced billing and customer deposits | 3,990 | 4,212 | ||||||
Accrued taxes | 3,962 | 1,774 | ||||||
Dividends payable | 2,388 | 2,404 | ||||||
Total current liabilities | 43,788 | 34,995 | ||||||
Long-Term Debt | 73,570 | 69,290 | ||||||
Deferred Credits and Other Noncurrent Liabilities | ||||||||
Deferred income taxes | 36,835 | 36,308 | ||||||
Postemployment benefit obligation | 30,070 | 29,946 | ||||||
Other noncurrent liabilities | 16,578 | 15,766 | ||||||
Total deferred credits and other noncurrent liabilities | 83,483 | 82,020 | ||||||
Stockholders' Equity | ||||||||
Common stock | 6,495 | 6,495 | ||||||
Additional paid-in capital | 91,057 | 91,091 | ||||||
Retained earnings | 33,554 | 31,141 | ||||||
Treasury stock | (46,825 | ) | (45,619 | ) | ||||
Accumulated other comprehensive income | 7,851 | 7,880 | ||||||
Noncontrolling interest | 493 | 494 | ||||||
Total stockholders' equity | 92,625 | 91,482 | ||||||
Total Liabilities and Stockholders' Equity | $ | 293,466 | $ | 277,787 |
Financial Data | ||||||||
AT&T Inc. | ||||||||
Consolidated Statements of Cash Flows | ||||||||
Dollars in millions | ||||||||
Unaudited | Six months ended June 30, | |||||||
2014 | 2013 | |||||||
Operating Activities | ||||||||
Net income | $ | 7,355 | $ | 7,653 | ||||
Adjustments to reconcile net income to | ||||||||
net cash provided by operating activities: | ||||||||
Depreciation and amortization | 9,167 | 9,100 | ||||||
Undistributed earnings from investments in equity affiliates | (58 | ) | (198 | ) | ||||
Provision for uncollectible accounts | 444 | 439 | ||||||
Deferred income tax expense | 546 | 1,081 | ||||||
Net gain from sale of investments, net of impairments | (1,365 | ) | (260 | ) | ||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (566 | ) | (290 | ) | ||||
Other current assets | (771 | ) | 784 | |||||
Accounts payable and accrued liabilities | 2,894 | (340 | ) | |||||
Retirement benefit funding | (280 | ) | - | |||||
Other - net | (497 | ) | (258 | ) | ||||
Total adjustments | 9,514 | 10,058 | ||||||
Net Cash Provided by Operating Activities | 16,869 | 17,711 | ||||||
Investing Activities | ||||||||
Construction and capital expenditures: | ||||||||
Capital expenditures | (11,649 | ) | (9,665 | ) | ||||
Interest during construction | (118 | ) | (140 | ) | ||||
Acquisitions, net of cash acquired | (857 | ) | (1,182 | ) | ||||
Dispositions | 4,921 | 825 | ||||||
Return of advances to and investments in equity affiliates | 2 | 301 | ||||||
Other | - | (4 | ) | |||||
Net Cash Used in Investing Activities | (7,701 | ) | (9,865 | ) | ||||
Financing Activities | ||||||||
Net change in short-term borrowings with | ||||||||
original maturities of three months or less | 134 | - | ||||||
Issuance of other short-term borrowings | - | 1,476 | ||||||
Repayment of other short-term borrowings | - | (233 | ) | |||||
Issuance of long-term debt | 8,564 | 6,416 | ||||||
Repayment of long-term debt | (3,508 | ) | (1,823 | ) | ||||
Purchase of treasury stock | (1,396 | ) | (9,217 | ) | ||||
Issuance of treasury stock | 27 | 104 | ||||||
Dividends paid | (4,784 | ) | (4,930 | ) | ||||
Other | (239 | ) | 41 | |||||
Net Cash Used in Financing Activities | (1,202 | ) | (8,166 | ) | ||||
Net increase (decrease) in cash and cash equivalents | 7,966 | (320 | ) | |||||
Cash and cash equivalents beginning of year | 3,339 | 4,868 | ||||||
Cash and Cash Equivalents End of Period | $ | 11,305 | $ | 4,548 |
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 | Six Months Ended | ||||||||||||||||||||||
6/30/2014 | 6/30/2013 | % Chg | 6/30/2014 | 6/30/2013 | % Chg | |||||||||||||||||||
Wireless | ||||||||||||||||||||||||
Subscribers and Connections | ||||||||||||||||||||||||
Total | 116,634 | 107,884 | 8.1 | % | ||||||||||||||||||||
Postpaid | 74,332 | 71,278 | 4.3 | % | ||||||||||||||||||||
Prepaid | 11,343 | 7,084 | 60.1 | % | ||||||||||||||||||||
Reseller | 13,756 | 14,330 | -4.0 | % | ||||||||||||||||||||
Connected Devices | 17,203 | 15,192 | 13.2 | % | ||||||||||||||||||||
Wireless Net Adds | ||||||||||||||||||||||||
Total | 634 | 632 | 0.3 | % | 1,696 | 923 | 83.7 | % | ||||||||||||||||
Postpaid | 1,026 | 551 | 86.2 | % | 1,651 | 847 | 94.9 | % | ||||||||||||||||
Prepaid | (405 | ) | 11 | - | (455 | ) | (173 | ) | - | |||||||||||||||
Reseller | (162 | ) | (414 | ) | 60.9 | % | (368 | ) | (666 | ) | 44.7 | % | ||||||||||||
Connected Devices | 175 | 484 | -63.8 | % | 868 | 915 | -5.1 | % | ||||||||||||||||
M&A Activity, Partitioned Customers and Other Adjs. | (14 | ) | 1 | - | 4,562 | 4 | - | |||||||||||||||||
Wireless Churn | ||||||||||||||||||||||||
Postpaid Churn | 0.86 | % | 1.02 | % | -16 BP | 0.96 | % | 1.03 | % | -7 BP | ||||||||||||||
Total Churn | 1.47 | % | 1.36 | % | 11 BP | 1.43 | % | 1.37 | % | 6 BP | ||||||||||||||
Other | ||||||||||||||||||||||||
Licensed POPs (000,000) | 321 | 317 | 1.3 | % | ||||||||||||||||||||
Wireline | ||||||||||||||||||||||||
Voice | ||||||||||||||||||||||||
Total Wireline Voice Connections | 26,958 | 30,228 | -10.8 | % | ||||||||||||||||||||
Net Change | (758 | ) | (935 | ) | 18.9 | % | (1,531 | ) | (1,956 | ) | 21.7 | % | ||||||||||||
Broadband | ||||||||||||||||||||||||
Total Wireline Broadband Connections | 16,448 | 16,453 | - | |||||||||||||||||||||
Net Change | (55 | ) | (61 | ) | 9.8 | % | 23 | 63 | -63.5 | % | ||||||||||||||
Video | ||||||||||||||||||||||||
Total U-verse Video Connections | 5,851 | 5,001 | 17.0 | % | ||||||||||||||||||||
Net Change | 190 | 233 | -18.5 | % | 391 | 465 | -15.9 | % | ||||||||||||||||
Consumer Revenue Connections | ||||||||||||||||||||||||
Broadband1 | 14,780 | 14,660 | 0.8 | % | ||||||||||||||||||||
U-verse Video Connections | 5,831 | 4,986 | 16.9 | % | ||||||||||||||||||||
Voice2 | 15,314 | 17,362 | -11.8 | % | ||||||||||||||||||||
Total Consumer Revenue Connections1 | 35,925 | 37,008 | -2.9 | % | ||||||||||||||||||||
Net Change | (299 | ) | (393 | ) | 23.9 | % | (465 | ) | (659 | ) | 29.4 | % | ||||||||||||
AT&T Inc. | ||||||||||||||||||||||||
Construction and capital expenditures: | ||||||||||||||||||||||||
Capital expenditures | $ | 5,933 | $ | 5,413 | 9.6 | % | $ | 11,649 | $ | 9,665 | 20.5 | % | ||||||||||||
Interest during construction | $ | 63 | $ | 74 | -14.9 | % | $ | 118 | $ | 140 | -15.7 | % | ||||||||||||
Dividends Declared per Share | $ | 0.46 | $ | 0.45 | 2.2 | % | $ | 0.92 | $ | 0.90 | 2.2 | % | ||||||||||||
End of Period Common Shares Outstanding (000,000) | 5,191 | 5,335 | -2.7 | % | ||||||||||||||||||||
Debt Ratio3 | 47.6 | % | 46.6 | % | 100 BP | |||||||||||||||||||
Total Employees | 248,170 | 245,350 | 1.1 | % | ||||||||||||||||||||
1 Consumer wireline broadband connections include DSL lines, U-verse high speed Internet access and satellite broadband. | ||||||||||||||||||||||||
2 Includes consumer U-verse Voice over Internet Protocol connections of 4,379 as of June 30, 2014. | ||||||||||||||||||||||||
3 Total long-term debt plus debt maturing within one year divided by total debt plus total stockholders' equity. | ||||||||||||||||||||||||
Note: For the end of 2Q14, total switched access lines were 22,547; retail business switched access lines totaled 9,808; and wholesale, | ||||||||||||||||||||||||
national mass markets and coin switched access lines totaled 1,804. Restated switched access lines do not include ISDN lines. | ||||||||||||||||||||||||