AT&T 8K Other Events | T 22 Oct 14

Financial Data

AT&T Inc.
Consolidated Statements of Income
Dollars in millions except per share amounts
Unaudited	Three Months Ended									Nine Months Ended
	9/30/2014			9/30/2013			% Chg			9/30/2014			9/30/2013			% Chg
Operating Revenues	$	32,957		$	32,158			2.5	%	$	98,008		$	95,589			2.5	%

Operating Expenses
Cost of services and sales (exclusive of depreciation and amortization shown separately below)		14,541			13,403			8.5	%		42,074			39,227			7.3	%
Selling, general and administrative		8,475			7,952			6.6	%		24,932			24,406			2.2	%
Depreciation and amortization		4,539			4,615			-1.6	%		13,706			13,715			-0.1	%
Total Operating Expenses		27,555			25,970			6.1	%		80,712			77,348			4.3	%
Operating Income		5,402			6,188			-12.7	%		17,296			18,241			-5.2	%
Interest Expense		1,016			829			22.6	%		2,757			2,481			11.1	%
Equity in Net Income (Loss) of Affiliates		(2	)		91			-			188			494			-61.9	%
Other Income (Expense) - Net		42			50			-16.0	%		1,456			370			-
Income Before Income Taxes		4,426			5,500			-19.5	%		16,183			16,624			-2.7	%
Income Tax Expense		1,367			1,595			-14.3	%		5,769			5,066			13.9	%
Net Income		3,059			3,905			-21.7	%		10,414			11,558			-9.9	%
Less: Net Income Attributable to Noncontrolling Interest		(57	)		(91	)		37.4	%		(213	)		(222	)		4.1	%
Net Income Attributable to AT&T	$	3,002		$	3,814			-21.3	%	$	10,201		$	11,336			-10.0	%


Basic Earnings Per Share Attributable to AT&T	$	0.58		$	0.72			-19.4	%	$	1.96		$	2.10			-6.7	%
Weighted Average Common Shares Outstanding (000,000)		5,198			5,315			-2.2	%		5,208			5,402			-3.6	%

Diluted Earnings Per Share Attributable to AT&T	$	0.58		$	0.72			-19.4	%	$	1.95		$	2.09			-6.7	%
Weighted Average Common Shares Outstanding with Dilution (000,000)		5,214			5,331			-2.2	%		5,224			5,419			-3.6	%

Financial Data

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

Wireless	9/30/2014			9/30/2013			% Chg			9/30/2014			9/30/2013			% Chg
Segment Operating Revenues
Service	$	15,423		$	15,460			-0.2	%	$	45,958		$	45,892			0.1	%
Equipment		2,914			2,020			44.3	%		8,175			5,570			46.8	%
Total Segment Operating Revenues		18,337			17,480			4.9	%		54,133			51,462			5.2	%

Segment Operating Expenses
Operations and support		11,855			10,982			7.9	%		34,305			31,932			7.4	%
Depreciation and amortization		1,965			1,875			4.8	%		5,931			5,553			6.8	%
Total Segment Operating Expenses		13,820			12,857			7.5	%		40,236			37,485			7.3	%
Segment Operating Income		4,517			4,623			-2.3	%		13,897			13,977			-0.6	%
Equity in Net Income (Loss) of Affiliates		(26	)		(18	)		-44.4	%		(75	)		(55	)		-36.4	%
Segment Income	$	4,491		$	4,605			-2.5	%	$	13,822		$	13,922			-0.7	%

Segment Operating Income Margin		24.6	%		26.4	%					25.7	%		27.2	%

Wireline
Segment Operating Revenues
Service	$	14,368		$	14,403			-0.2	%	$	43,165		$	43,266			-0.2	%
Equipment		247			267			-7.5	%		688			832			-17.3	%
Total Segment Operating Revenues		14,615			14,670			-0.4	%		43,853			44,098			-0.6	%

Segment Operating Expenses
Operations and support		10,761			10,385			3.6	%		31,918			31,137			2.5	%
Depreciation and amortization		2,571			2,736			-6.0	%		7,769			8,146			-4.6	%
Total Segment Operating Expenses		13,332			13,121			1.6	%		39,687			39,283			1.0	%
Segment Operating Income		1,283			1,549			-17.2	%		4,166			4,815			-13.5	%
Equity in Net Income of Affiliates		1			-			-			2			1			-
Segment Income	$	1,284		$	1,549			-17.1	%	$	4,168		$	4,816			-13.5	%

Segment Operating Income Margin		8.8	%		10.6	%					9.5	%		10.9	%

Financial Data

AT&T Inc.
Consolidated Balance Sheets
Dollars in millions
	9/30/14			12/31/13
	Unaudited

Assets
Current Assets
Cash and cash equivalents	$	2,458		$	3,339
Accounts receivable - net of allowances for doubtful accounts of $482 and $483		13,445			12,918
Prepaid expenses		869			960
Deferred income taxes		1,030			1,199
Other current assets		8,033			4,780
Total current assets		25,835			23,196
Property, Plant and Equipment - Net		115,134			110,968
Goodwill		70,131			69,273
Licenses		60,784			56,433
Other Intangible Assets - Net		6,252			5,779
Investments in and Advances to Equity Affiliates		166			3,860
Other Assets		9,637			8,278
Total Assets	$	287,939		$	277,787

Liabilities and Stockholders' Equity
Current Liabilities
Debt maturing within one year	$	5,109		$	5,498
Accounts payable and accrued liabilities		24,119			21,107
Advanced billing and customer deposits		4,038			4,212
Accrued taxes		4,328			1,774
Dividends payable		2,385			2,404
Total current liabilities		39,979			34,995
Long-Term Debt		70,516			69,290
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes		37,393			36,308
Postemployment benefit obligation		29,918			29,946
Other noncurrent liabilities		17,014			15,766
Total deferred credits and other noncurrent liabilities		84,325			82,020
Stockholders' Equity
Common stock		6,495			6,495
Additional paid-in capital		91,064			91,091
Retained earnings		34,165			31,141
Treasury stock		(47,037	)		(45,619	)
Accumulated other comprehensive income		7,926			7,880
Noncontrolling interest		506			494
Total stockholders' equity		93,119			91,482
Total Liabilities and Stockholders' Equity	$	287,939		$	277,787

Financial Data

AT&T Inc.
Consolidated Statements of Cash Flows
Dollars in millions
Unaudited	Nine Months Ended September 30,
	2014			2013

Operating Activities
Net income	$	10,414		$	11,558
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization		13,706			13,715
Undistributed earnings from investments in equity affiliates		(45	)		(232	)
Provision for uncollectible accounts		692			653
Deferred income tax expense		1,304			2,505
Net gain from sale of investments, net of impairments		(1,374	)		(272	)
Changes in operating assets and liabilities:
Accounts receivable		(1,269	)		(440	)
Other current assets		(813	)		520
Accounts payable and accrued liabilities		4,763			(420	)
Retirement benefit funding		(420	)		(175	)
Other - net		(1,365	)		(533	)
Total adjustments		15,179			15,321
Net Cash Provided by Operating Activities		25,593			26,879

Investing Activities
Construction and capital expenditures:
Capital expenditures		(16,829	)		(15,565	)
Interest during construction		(178	)		(213	)
Acquisitions, net of cash acquired		(2,053	)		(4,025	)
Dispositions		6,074			846
Purchases of securities, net		(1,996	)		-
Return of advances to and investments in equity affiliates		3			301
Other		(1	)		(4	)
Net Cash Used in Investing Activities		(14,980	)		(18,660	)

Financing Activities
Net change in short-term borrowings with
original maturities of three months or less		(16	)		1,851
Issuance of other short-term borrowings		-			1,476
Repayment of other short-term borrowings		-			(1,476	)
Issuance of long-term debt		8,564			6,416
Repayment of long-term debt		(10,376	)		(2,131	)
Purchase of treasury stock		(1,617	)		(11,134	)
Issuance of treasury stock		34			108
Dividends paid		(7,170	)		(7,325	)
Other		(913	)		499
Net Cash Used in Financing Activities		(11,494	)		(11,716	)
Net decrease in cash and cash equivalents		(881	)		(3,497	)
Cash and cash equivalents beginning of year		3,339			4,868
Cash and Cash Equivalents End of Period	$	2,458		$	1,371

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
	9/30/2014			9/30/2013			% Chg			9/30/2014			9/30/2013			% Chg

Wireless
Subscribers and Connections
Total											118,650			109,460			8.4	%
Postpaid											75,105			72,032			4.3	%
Prepaid											11,179			7,425			50.6	%
Reseller											13,884			14,089			-1.5	%
Connected Devices											18,482			15,914			16.1	%

Wireless Net Adds
Total		2,007			989			-			3,703			1,912			93.7	%
Postpaid		785			363			-			2,436			1,210			-
Prepaid		(140	)		192			-			(595	)		19			-
Reseller		87			(285	)		-			(281	)		(951	)		70.5	%
Connected Devices		1,275			719			77.3	%		2,143			1,634			31.2	%
M&A Activity, Partitioned Customers and Other Adjs.		9			587			-98.5	%		4,571			591			-

Wireless Churn
Postpaid Churn		0.99	%		1.07	%	-8 BP				0.97	%		1.04	%	-7 BP
Total Churn		1.36	%		1.31	%	5 BP				1.41	%		1.35	%	6 BP

Other
Licensed POPs (000,000)											321			317			1.3	%

Wireline
Voice
Total Wireline Voice Connections											26,220			29,296			-10.5	%
Net Change		(738	)		(932	)		20.8	%		(2,269	)		(2,888	)		21.4	%

Broadband
Total Wireline Broadband Connections											16,486			16,427			0.4	%
Net Change		38			(26	)		-			61			37			64.9	%

Video
Total U-verse Video Connections											6,067			5,266			15.2	%
Net Change		216			265			-18.5	%		607			730			-16.8	%

Consumer Revenue Connections
Broadband¹											14,844			14,665			1.2	%
U-verse Video Connections											6,045			5,249			15.2	%
Voice²											14,880			16,749			-11.2	%
Total Consumer Revenue Connections¹											35,769			36,663			-2.4	%
Net Change		(156	)		(345	)		54.8	%		(621	)		(1,004	)		38.1	%

AT&T Inc.
Construction and capital expenditures:
Capital expenditures	$	5,180		$	5,900			-12.2	%	$	16,829		$	15,565			8.1	%
Interest during construction	$	60		$	73			-17.8	%	$	178		$	213			-16.4	%
Dividends Declared per Share	$	0.46		$	0.45			2.2	%	$	1.38		$	1.35			2.2	%
End of Period Common Shares Outstanding (000,000)											5,185			5,280			-1.8	%
Debt Ratio³											44.8	%		46.9	%	-210 BP
Total Employees											247,700			246,740			0.4	%

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 4,698 as of September 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 3Q14, total switched access lines were 21,464; retail business switched access lines totaled 9,509; and wholesale,
		national mass markets and coin switched access lines totaled 1,773. Restated switched access lines do not include ISDN lines.

AT&T (T) 8-KOther Events