AT&T (T) 8-K AT&T Reports Strong Subscriber Gains

Financial Data
AT&T Inc.
Consolidated Statements of Income
Dollars in millions except per share amounts
Unaudited	Three Months Ended									Twelve Months Ended
	12/31/2014			12/31/2013			% Chg			12/31/2014			12/31/2013			% Chg
Operating Revenues	$	34,439		$	33,163			3.8	%	$	132,447		$	128,752			2.9	%
Operating Expenses
Cost of services and sales (exclusive of depreciation and      amortization shown separately below)		18,537			12,237			51.5	%		60,611			51,464			17.8	%
Selling, general and administrative		14,765			4,008			-			39,697			28,414			39.7	%
Abandonment of network assets		2,120			-			-			2,120			-			-
Depreciation and amortization		4,567			4,680			-2.4	%		18,273			18,395			-0.7	%
Total Operating Expenses		39,989			20,925			91.1	%		120,701			98,273			22.8	%
Operating Income (Loss)		(5,550	)		12,238			-			11,746			30,479			-61.5	%
Interest Expense		856			1,459			-41.3	%		3,613			3,940			-8.3	%
Equity in Net Income (Loss) of Affiliates		(13	)		148			-			175			642			-72.7	%
Other Income (Expense) - Net		196			226			-13.3	%		1,652			596			-
Income (Loss) Before Income Taxes		(6,223	)		11,153			-			9,960			27,777			-64.1	%
Income Tax (Benefit) Expense		(2,327	)		4,158			-			3,442			9,224			-62.7	%
Net Income (Loss)		(3,896	)		6,995			-			6,518			18,553			-64.9	%
Less: Net Income Attributable to Noncontrolling Interest		(81	)		(82	)		1.2	%		(294	)		(304	)		3.3	%
Net Income (Loss) Attributable to AT&T	$	(3,977	)	$	6,913			-		$	6,224		$	18,249			-65.9	%
Basic Earnings (Loss) Per Share Attributable to AT&T	$	(0.77	)	$	1.31			-		$	1.19		$	3.39			-64.9	%
Weighted Average Common      Shares Outstanding (000,000)		5,198			5,267			-1.3	%		5,205			5,368			-3.0	%
Diluted Earnings (Loss) Per Share Attributable to AT&T	$	(0.77	)	$	1.31			-		$	1.19		$	3.39			-64.9	%
Weighted Average Common      Shares Outstanding with Dilution (000,000)		5,214			5,283			-1.3	%		5,221			5,385			-3.0	%

Financial Data
AT&T Inc.
Statements of Segment Income
Dollars in millions
Unaudited
	Three Months Ended									Twelve Months Ended
Wireless	12/31/2014			12/31/2013			% Chg			12/31/2014			12/31/2013			% Chg
Segment Operating Revenues
Service	$	15,074		$	15,660			-3.7	%	$	61,032		$	61,552			-0.8	%
Equipment		4,785			2,777			72.3	%		12,960			8,347			55.3	%
Total Segment Operating Revenues		19,859			18,437			7.7	%		73,992			69,899			5.9	%
Segment Operating Expenses
Operations and support		14,619			12,576			16.2	%		48,924			44,508			9.9	%
Depreciation and amortization		2,010			1,915			5.0	%		7,941			7,468			6.3	%
Total Segment Operating Expenses		16,629			14,491			14.8	%		56,865			51,976			9.4	%
Segment Operating Income		3,230			3,946			-18.1	%		17,127			17,923			-4.4	%
Equity in Net Income (Loss) of Affiliates		(37	)		(20	)		-85.0	%		(112	)		(75	)		-49.3	%
Segment Income	$	3,193		$	3,926			-18.7	%	$	17,015		$	17,848			-4.7	%
Segment Operating Income Margin		16.3	%		21.4	%					23.1	%		25.6	%
Wireline
Segment Operating Revenues
Service	$	14,240		$	14,434			-1.3	%	$	57,405		$	57,700			-0.5	%
Equipment		332			282			17.7	%		1,020			1,114			-8.4	%
Total Segment Operating Revenues		14,572			14,716			-1.0	%		58,425			58,814			-0.7	%
Segment Operating Expenses
Operations and support		10,553			10,501			0.5	%		42,471			41,638			2.0	%
Depreciation and amortization		2,554			2,761			-7.5	%		10,323			10,907			-5.4	%
Total Segment Operating Expenses		13,107			13,262			-1.2	%		52,794			52,545			0.5	%
Segment Operating Income		1,465			1,454			0.8	%		5,631			6,269			-10.2	%
Equity in Net Income (Loss) of Affiliates		(2	)		1			-			-			2			-
Segment Income	$	1,463		$	1,455			0.5	%	$	5,631		$	6,271			-10.2	%
Segment Operating Income Margin		10.1	%		9.9	%					9.6	%		10.7	%

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Financial Data
AT&T Inc.
Consolidated Balance Sheets
Dollars in millions
	December 31,
	2014			2013
	Unaudited
Assets
Current Assets
Cash and cash equivalents	$	8,603		$	3,339
Accounts receivable - net of allowances for doubtful accounts of $454 and $483		14,527			12,918
Prepaid expenses		831			960
Deferred income taxes		1,142			1,199
Other current assets		6,925			4,780
Total current assets		32,028			23,196
Property, Plant and Equipment - Net		112,898			110,968
Goodwill		69,692			69,273
Licenses		60,824			56,433
Other Intangible Assets - Net		6,139			5,779
Investments in Equity Affiliates		250			3,860
Other Assets		10,998			8,278
Total Assets	$	292,829		$	277,787
Liabilities and Stockholders' Equity
Current Liabilities
Debt maturing within one year	$	6,056		$	5,498
Accounts payable and accrued liabilities		23,592			21,107
Advanced billing and customer deposits		4,105			4,212
Accrued taxes		1,091			1,774
Dividends payable		2,438			2,404
Total current liabilities		37,282			34,995
Long-Term Debt		76,011			69,290
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes		37,544			36,308
Postemployment benefit obligation		37,079			29,946
Other noncurrent liabilities		17,989			15,766
Total deferred credits and other noncurrent liabilities		92,612			82,020
Stockholders' Equity
Common stock		6,495			6,495
Additional paid-in capital		91,108			91,091
Retained earnings		27,736			31,141
Treasury stock		(47,029	)		(45,619	)
Accumulated other comprehensive income		8,060			7,880
Noncontrolling interest		554			494
Total stockholders' equity		86,924			91,482
Total Liabilities and Stockholders' Equity	$	292,829		$	277,787

Financial Data
AT&T Inc.
Consolidated Statements of Cash Flows
Dollars in millions
Unaudited	Twelve Months Ended December 31,
	2014			2013
Operating Activities
Net income	$	6,518		$	18,553
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization		18,273			18,395
Undistributed earnings from investments in equity affiliates		(27	)		(324	)
Provision for uncollectible accounts		1,032			954
Deferred income tax expense		1,772			6,242
Net gain from sale of investments, net of impairments		(1,532	)		(492	)
Actuarial loss (gain) on pension and postretirement benefits		7,869			(7,584	)
Abandonment of network assets		2,120			-
Changes in operating assets and liabilities:
Accounts receivable		(2,651	)		(1,329	)
Other current assets		(962	)		412
Accounts payable and accrued liabilities		2,412			(152	)
Retirement benefit funding		(560	)		(209	)
Other - net		(2,926	)		330
Total adjustments		24,820			16,243
Net Cash Provided by Operating Activities		31,338			34,796
Investing Activities
Construction and capital expenditures:
Capital expenditures		(21,199	)		(20,944	)
Interest during construction		(234	)		(284	)
Acquisitions, net of cash acquired		(3,141	)		(4,113	)
Dispositions		8,123			1,923
Purchases of securities		(1,890	)		-
Return of advances to and investments in equity affiliates		4			301
Other		-			(7	)
Net Cash Used in Investing Activities		(18,337	)		(23,124	)
Financing Activities
Net change in short-term borrowings with
original maturities of three months or less		(16	)		20
Issuance of other short-term borrowings		-			1,476
Repayment of other short-term borrowings		-			(1,476	)
Issuance of long-term debt		15,926			12,040
Repayment of long-term debt		(10,400	)		(7,698	)
Issuance of other long-term financing obligations		107			4,796
Purchase of treasury stock		(1,617	)		(13,028	)
Issuance of treasury stock		39			114
Dividends paid		(9,552	)		(9,696	)
Other		(2,224	)		251
Net Cash Used in Financing Activities		(7,737	)		(13,201	)
Net increase (decrease) in cash and cash equivalents		5,264			(1,529	)
Cash and cash equivalents beginning of year		3,339			4,868
Cash and Cash Equivalents End of Year	$	8,603		$	3,339

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									Twelve Months Ended
	12/31/2014			12/31/2013			% Chg			12/31/2014			12/31/2013			% Chg
Wireless
Subscribers and Connections
Total											120,554			110,376			9.2	%
Postpaid											75,931			72,638			4.5	%
Prepaid											10,986			7,384			48.8	%
Reseller											13,855			14,028			-1.2	%
Connected Devices											19,782			16,326			21.2	%
Wireless Net Adds
Total		1,905			809			-			5,608			2,721			-
Postpaid		854			566			50.9	%		3,290			1,776			85.2	%
Prepaid		(180	)		(32	)		-			(775	)		(13	)		-
Reseller		(65	)		(123	)		47.2	%		(346	)		(1,074	)		67.8	%
Connected Devices		1,296			398			-			3,439			2,032			69.2	%
M&A Activity, Partitioned Customers and Other Adjs.		(1	)		107			-			4,570			698			-
Wireless Churn
Postpaid Churn		1.22	%		1.11	%	11 BP				1.04	%		1.06	%	-2 BP
Total Churn		1.59	%		1.43	%	16 BP				1.45	%		1.37	%	8 BP
Other
Licensed POPs (000,000)											321			317			1.3	%
Wireline
Voice
Total Wireline Voice Connections											24,778			28,489			-13.0	%
Net Change		(1,442	)		(807	)		-78.7	%		(3,711	)		(3,695	)		-0.4	%
Broadband
Total Wireline Broadband Connections											16,028			16,425			-2.4	%
Net Change		(458	)		(2	)		-			(397	)		35			-
Video
Total U-verse Video Connections											5,943			5,460			8.8	%
Net Change		(124	)		194			-			483			924			-47.7	%
Consumer Revenue Connections
Broadband1											14,444			14,697			-1.7	%
U-verse Video Connections											5,920			5,442			8.8	%
Voice2					��						14,002			16,251			-13.8	%
Total Consumer Revenue Connections1											34,366			36,390			-5.6	%
Net Change		(1,403	)		(273	)		-			(2,024	)		(1,277	)		-58.5	%
AT&T Inc.
Construction and capital expenditures:
Capital expenditures	$	4,370		$	5,379			-18.8	%	$	21,199		$	20,944			1.2	%
Interest during construction	$	56		$	71			-21.1	%	$	234		$	284			-17.6	%
Dividends Declared per Share	$	0.47		$	0.46			2.2	%	$	1.85		$	1.81			2.2	%
End of Period Common Shares Outstanding (000,000)											5,187			5,226			-0.7	%
Debt Ratio3											48.6%			45.0%		360 BP
Total Employees											243,620			243,360			0.1	%

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 4,759 as of December 31, 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 4Q14, total switched access lines were 19,896; retail business switched access lines totaled 8,939; and wholesale,
		national mass markets and coin switched access lines totaled 1,714. Restated switched access lines do not include ISDN lines.

Financial Data
AT&T Inc.
Non-GAAP Consolidated Reconciliation
Free Cash Flow
Dollars in millions
Unaudited
	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2013			2014			2013			2014
Net cash provided by operating activities	$	7,917		$	5,745		$	34,796		$	31,338
Less: Construction and capital expenditures		(5,450	)		(4,426	)		(21,228	)		(21,433	)
Free Cash Flow	$	2,467		$	1,319		$	13,568		$	9,905
Free Cash Flow after Dividends
Dollars in millions
Unaudited
	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
		2013			2014			2013			2014
Net cash provided by operating activities	$	7,917		$	5,745		$	34,796		$	31,338
Less: Construction and capital expenditures		(5,450	)		(4,426	)		(21,228	)		(21,433	)
Free Cash Flow		2,467			1,319			13,568			9,905
Less: Dividends paid		(2,371	)		(2,382	)		(9,696	)		(9,552	)
Free Cash Flow after Dividends	$	96		$	(1,063	)	$	3,872		$	353
Free cash flow includes reimbursements of certain postretirement benefits paid. Free cash flow is defined as cash from operations minus construction and capital expenditures. Free cash flow after dividends is defined as cash from operations minus construction, capital expenditures and dividends. We believe these metrics provide useful information to our investors because management regularly reviews free cash flow as an important indicator of how much cash is generated by normal business operations, including capital expenditures, and makes decisions based on it. Management also views free cash flow as a measure of cash available to pay debt and return cash to shareowners.

Financial Data
AT&T Inc.
Non-GAAP Consolidated Reconciliation
Adjusted Operating Revenues, Operating Income and Margin
Dollars in millions
Unaudited
	Three Months Ended									Twelve Months Ended
	December 31,									December 31,
	2012			2013			2014			2012			2013			2014
Reported Operating Revenues	$	32,578		$	33,163		$	34,439		$	127,434		$	128,752		$	132,447
Adjustments:
Removal of Advertising Solutions		-			-			-			(1,049	)		-			-
Storm Impacts		27			-			-			27			-			-
Adjusted Operating Revenues	$	32,605		$	33,163		$	34,439		$	126,412		$	128,752		$	132,447
Year-over-year growth - Adjusted					1.7	%		3.8	%					1.9	%		2.9	%
Adjusted Operating Revenues is a non-GAAP financial measure calculated by excluding from operating revenues significant items that are non-operational or non-recurring in nature, including dispositions. Management believes that this measure provides relevant and useful information to investors and other users of our financial data in evaluating the effectiveness of our operations and underlying business trends. Adjusted Operating Revenues should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP. Our calculations of Adjusted Operating Revenues may differ from similarly titled measures reported by other companies.
Adjusted Operating Income and Margin
Dollars in millions
Unaudited
	Three Months Ended									Twelve Months Ended
	December 31,									December 31,
		2012			2013			2014			2012			2013			2014
Reported Operating Income	$	(5,958	)	$	12,238		$	(5,550	)	$	12,997		$	30,479		$	11,746
Adjustments:
Actuarial (gain) / loss on benefit plans		9,994			(7,584	)		7,869			9,994			(7,584	)		7,869
Abandonment of network assets		-			-			2,120			-			-			2,120
Other significant adjustments1		176			-			460			176			(229	)		948
Employee separation charges		-			501			-			-			501			-
Removal of Advertising Solutions		-			-			-			(170	)		-			-
Adjusted Operating Income	$	4,212		$	5,155		$	4,899		$	22,997		$	23,167		$	22,683
Year-over-year growth - Adjusted					22.4	%		-5.0	%					0.7	%		-2.1	%
Adjusted Operating Income Margin*		12.9	%		15.5	%		14.2	%		18.2	%		18.0	%		17.1	%
1Other significant adjustments include 2014 costs related to the Leap and Alltel wireless integrations, DIRECTV merger, and other asset write-offs; 2013 costs related to spectrum transfer; and 2012 costs related to a storm impact.
Adjusted Operating Income and Margin are non-GAAP financial measures calculated by excluding from operating revenues and operating expenses significant items that are non-operational or non-recurring in nature. Management believes that these measures provide relevant and useful information to investors and other users of our financial data in evaluating the effectiveness of our operations and underlying business trends. Adjusted Operating Income and Margin exclude all actuarial gains or losses ($7.9 billion loss in 2014) associated with our pension and postemployment benefit plans, which we immediately recognize in the income statement, pursuant to our accounting policy for the recognition of actuarial gains/losses. As a result, Adjusted Operating Income and Margin reflect an expected return on plan assets of $4.1 billion (based on an average expected return on plan assets of 7.75%), rather than the actual return on plan assets excluding international pension of $4.6 billion (actual return of 8.8%), as included in the GAAP measure of income. Adjusted Operating Income and Margin should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP. Our calculation of Adjusted Operating Income and Margin, as presented, may differ from similarly titled measures reported by other companies. *Adjusted Operating Income Margin is calculated by dividing Adjusted Operating Income by Adjusted Operating Revenues.

Financial Data
AT&T Inc.
Non-GAAP Consolidated Reconciliation
Annualized Net-Debt-to-Adjusted-EBITDA Ratio
Dollars in millions
Unaudited
	Three Months Ended
	3/31/14		6/30/14		9/30/14		12/31/14			2014
Operating Revenues	$	32,476	$	32,575	$	32,957	$	34,439		$	132,447
Operating Expenses		26,198		26,959		27,555		39,989			120,701
Total Operating Income (Loss)		6,278		5,616		5,402		(5,550	)		11,746
Add Back Depreciation and Amortization		4,617		4,550		4,539		4,567			18,273
Consolidated Reported EBITDA		10,895		10,166		9,941		(983	)		30,019
Add Back:
Actuarial loss on benefit plans		-		-		-		7,869			7,869
Abandonment of network assets		-		-		-		2,120			2,120
Merger, wireless integration, and other costs1		81		97		213		396			787
Total Consolidated Adjusted EBITDA		10,976		10,263		10,154		9,402			40,795
Annualized Consolidated Adjusted EBITDA											40,795
End-of-period current debt											6,056
End-of-period long-term debt											76,011
Total End-of-Period Debt											82,067
Less Cash and Cash Equivalents											8,603
Less Bank Securities - Certificates of Deposit & Time Deposits2											1,890
Net Debt Balance											71,574
Annualized Net-Debt-to-Adjusted-EBITDA Ratio											1.75
1 Adjustments include Operations and Support expenses for Leap and Alltel wireless integration costs, DIRECTV merger costs and other asset write-off costs. 2 Bank Securities are included in "Other current assets" on the Consolidated Balance Sheets. Net-Debt-to-EBITDA ratios are non-GAAP financial measures frequently used by investors and credit rating agencies. Management believes these measures provide relevant and useful information to investors and other users of our financial data. Net debt is calculated by subtracting cash and cash equivalents from the sum of debt maturing within one year and long-term debt. The Net-Debt-to-EBITDA ratio is calculated by dividing the Net Debt by annualized EBITDA. Annualized EBITDA is calculated by annualizing the year-to-date EBITDA. Our calculation of EBITDA, as presented, may differ from similarly titled measures reported by other companies.

Financial Data
AT&T Inc.
Non-GAAP Consolidated Reconciliation
Adjusted Diluted EPS
Unaudited
	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2013			2014			2013			2014
Reported Diluted EPS	$	1.31		$	(0.77	)	$	3.39		$	1.19
Adjustments:
Actuarial (gain) / loss on benefit plans		(0.89	)		0.94			(0.88	)		0.94
Abandonment of network assets		-			0.25			-			0.25
Other significant adjustments1		-			0.13			-			0.19
Early debt redemption costs		0.07			-			0.07			0.02
Employee separation charges		0.06			-			0.06			-
Tax and spectrum transfer		-			-			(0.08	)		-
América Móvil - Gain on AMX shares sale		(0.02	)		-			(0.06	)		(0.08	)
Adjusted Diluted EPS	$	0.53		$	0.55		$	2.50		$	2.51
Year-over-year growth - Adjusted					3.8	%					0.4	%
Weighted Average Common Shares Outstanding
with Dilution (000,000)		5,283			5,214			5,385			5,221
1Includes a loss from the divestiture of Connecticut Wireline Properties, Leap and Alltel wireless integration costs, DIRECTV merger costs, and other asset write-off costs.
Adjusted Diluted EPS is a non-GAAP financial measure calculated by excluding from operating revenues, operating expenses and equity in net income of affiliates certain significant items that are non-operational or non-recurring in nature, including dispositions. Management believes that this measure provides relevant and useful information to investors and other users of our financial data in evaluating the effectiveness of our operations and underlying business trends. Adjusted Diluted EPS should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP. Our calculation of Adjusted Diluted EPS, as presented, may differ from similarly titled measures reported by other companies.
Sum of components may not tie due to rounding.

Financial Data
AT&T Inc.
Non-GAAP Wireless Reconciliation
Wireless Segment EBITDA
Dollars in millions
Unaudited
	Three Months Ended															Twelve Months Ended
	12/31/13			3/31/14			6/30/14			9/30/14			12/31/14			12/31/13			12/31/14
Segment Operating Revenues
Service	$	15,660		$	15,387		$	15,148		$	15,423		$	15,074		$	61,552		$	61,032
Equipment		2,777			2,479			2,782			2,914			4,785			8,347			12,960
Total Segment Operating Revenues	$	18,437		$	17,866		$	17,930		$	18,337		$	19,859		$	69,899		$	73,992
Segment Operating Expenses
Operations and support		12,576			10,882			11,568			11,855			14,619			44,508			48,924
Depreciation and amortization		1,915			1,931			2,035			1,965			2,010			7,468			7,941
Total Segment Operating Expenses		14,491			12,813			13,603			13,820			16,629			51,976			56,865
Segment Operating Income		3,946			5,053			4,327			4,517			3,230			17,923			17,127
Segment Operating Income Margin		21.4	%		28.3	%		24.1	%		24.6	%		16.3	%		25.6	%		23.1	%
Plus: Depreciation and amortization		1,915			1,931			2,035			1,965			2,010			7,468			7,941
EBITDA1	$	5,861		$	6,984		$	6,362		$	6,482		$	5,240		$	25,391		$	25,068
EBITDA as a % of Service Revenues2		37.4	%		45.4	%		42.0	%		42.0	%		34.8	%		41.3	%		41.1	%
1EBITDA is defined as Operating Income Before Depreciation and Amortization. 2Service revenues include Wireless data, voice, text and other service revenues.

Financial Data
AT&T Inc.
Non-GAAP Wireless Reconciliation
Wireless Segment Adjusted EBITDA
Dollars in millions
Unaudited	Three Months Ended									Twelve Months Ended
	December 31,									December 31,
	2012			2013			2014			2012			2013			2014
Reported Service Revenues	$	14,949		$	15,660		$	15,074		$	59,186		$	61,552		$	61,032
Adjustments:
Storm Impacts		22			-			-			22			-			-
Adjusted Service Revenues	$	14,971		$	15,660		$	15,074		$	59,208		$	61,552		$	61,032
EBITDA1	$	4,346		$	5,861		$	5,240		$	23,467		$	25,391		$	25,068
EBITDA as a % of Service Revenues2		29.1	%		37.4	%		34.8	%		39.6	%		41.3	%		41.1	%
Adjustments:
Wireless integration expense3		-			-			293			-			-			577
Storm impact		128			-			-			128			-			-
Adjusted EBITDA1	$	4,474		$	5,861		$	5,533		$	23,595		$	25,391		$	25,645
Adjusted EBITDA as a % of Adjusted Service Revenues2		29.9	%		37.4	%		36.7	%		39.9	%		41.3	%		42.0	%
1 EBITDA is defined as operating income before depreciation and amortization. 2 Service revenues include Wireless data, voice, text and other service revenues. 3 Operations and Support expenses for Leap and Alltel wireless integration costs.

Financial Data
AT&T Inc.
Non-GAAP Wireline Reconciliation
Wireline Segment EBITDA
Dollars in millions
Unaudited
	Three Months Ended
	12/31/13			9/30/14			12/31/14
Segment Operating Revenues
Service	$	14,434		$	14,368		$	14,240
Equipment		282			247			332
Total Segment Operating Revenues	$	14,716		$	14,615		$	14,572
Segment Operating Expenses
Operations and support		10,501			10,761			10,553
Depreciation and amortization		2,761			2,571			2,554
Total Segment Operating Expenses		13,262			13,332			13,107
Segment Operating Income		1,454			1,283			1,465
Segment Operating Income Margin		9.9	%		8.8	%		10.1	%
Plus: Depreciation and amortization		2,761			2,571			2,554
EBITDA1	$	4,215		$	3,854		$	4,019
EBITDA Margin		28.6	%		26.4	%		27.6	%
1EBITDA is defined as Operating Income Before Depreciation and Amortization.

Financial Data
AT&T Inc.
Non-GAAP Reconciliation of Revenues
Adjusted Operating Revenues Excluding Connecticut Wireline Properties1
Dollars in millions
Unaudited	Three Months Ended																								Twelve Months Ended
	3/31/13			6/30/13			9/30/13			12/31/13			3/31/14			6/30/14			9/30/14			12/31/14			12/31/13			12/31/14
Connecticut Wireline Operating Revenues	$	273		$	281		$	279		$	275		$	275		$	274		$	272		$	67		$	1,108		$	888
Consumer Markets		165			169			169			169			174			173			170			43			672			560
AT&T Business Solutions		110			111			109			107			101			99			101			24			437			325
Other		(2	)		1			1			(1	)		0			2			1			(0	)		(1	)		3
Total AT&T Operating Revenues	$	31,356		$	32,075		$	32,158		$	33,163		$	32,476		$	32,575		$	32,957		$	34,439		$	128,752		$	132,447
Less Connecticut Wireline		(273	)		(281	)		(279	)		(275	)		(275	)		(274	)		(272	)		(67	)		(1,108	)		(888	)
Adjusted AT&T Operating Revenues	$	31,083		$	31,794		$	31,879		$	32,888		$	32,201		$	32,301		$	32,685		$	34,372		$	127,644		$	131,559
Year-over-year growth - Adjusted														3.6	%		1.6	%		2.5	%		4.5	%					3.1	%
Wireline Operating Revenues	$	14,655		$	14,773		$	14,670		$	14,716		$	14,601		$	14,637		$	14,615		$	14,572		$	58,814		$	58,425
Less Connecticut Wireline		(273	)		(281	)		(279	)		(275	)		(275	)		(274	)		(272	)		(67	)		(1,108	)		(888	)
Adjusted Wireline Operating Revenues	$	14,382		$	14,492		$	14,391		$	14,441		$	14,326		$	14,363		$	14,343		$	14,505		$	57,706		$	57,537
Year-over-year growth - Adjusted														-0.4	%		-0.9	%		-0.3	%		0.4	%					-0.3	%
Wireline Consumer Operating Revenues	$	5,480		$	5,579		$	5,567		$	5,638		$	5,715		$	5,748		$	5,735		$	5,643		$	22,264		$	22,841
Less Connecticut Wireline		(165	)		(169	)		(169	)		(169	)		(174	)		(173	)		(170	)		(43	)		(672	)		(560	)
Adjusted Wireline Consumer Operating Revenues	$	5,315		$	5,410		$	5,398		$	5,469		$	5,541		$	5,575		$	5,565		$	5,600		$	21,592		$	22,281
Year-over-year growth - Adjusted														4.3	%		3.0	%		3.1	%		2.4	%					3.2	%
Wireline Business Solutions Operating Revenues	$	8,906		$	8,923		$	8,845		$	8,836		$	8,667		$	8,668		$	8,666		$	8,593		$	35,510		$	34,594
Less Connecticut Wireline		(110	)		(111	)		(109	)		(107	)		(101	)		(99	)		(101	)		(24	)		(437	)		(325	)
Adjusted Wireline Business Operating Revenues	$	8,796		$	8,812		$	8,736		$	8,729		$	8,566		$	8,569		$	8,565		$	8,569		$	35,073		$	34,269
Year-over-year growth - Adjusted														-2.6	%		-2.8	%		-2.0	%		-1.8	%					-2.3	%
Wireline Strategic Business Services Revenues2	$	1,978		$	2,099		$	2,157		$	2,248		$	2,296		$	2,382		$	2,465		$	2,559		$	8,482		$	9,702
Less Connecticut Wireline Revenues		(8	)		(9	)		(9	)		(10	)		(11	)		(11	)		(13	)		(2	)		(36	)		(37	)
Adjusted Wireline Strategic Business Services Revenues	$	1,970		$	2,090		$	2,148		$	2,238		$	2,285		$	2,371		$	2,452		$	2,557		$	8,446		$	9,665
Year-over-year growth - Adjusted														16.0	%		13.4	%		14.2	%		14.3	%					14.4	%
Wireline U-verse Services Revenue	$	2,690		$	2,931		$	3,061		$	3,276		$	3,470		$	3,657		$	3,791		$	3,898		$	11,958		$	14,816
Less Connecticut Wireline		(84	)		(91	)		(95	)		(100	)		(105	)		(109	)		(111	)		(28	)		(370	)		(353	)
Adjusted U-verse Services Revenues	$	2,606		$	2,840		$	2,966		$	3,176		$	3,365		$	3,548		$	3,680		$	3,870		$	11,588		$	14,463
Year-over-year growth - Adjusted														29.1	%		24.9	%		24.1	%		21.9	%					24.8	%
1Prior-period amounts restated to conform to current-period reporting methodology and divestiture of Connecticut Wireline Properties. Sum of segments' revenues within a quarter might not tie to total revenues due to rounding. For ease of presentation, Connecticut Wireline Properties revenues are presented separately on the schedules above.
2Strategic business services are AT&T's most advanced business solutions, including VPNs, Ethernet, cloud, hosting, IP conferencing, VoIP, MIS over Ethernet, U-verse and security services.
These Adjusted Operating Revenues are non-GAAP financial measures calculated by excluding the operating revenues of Connecticut wireline properties sold in October 2014. Management believes that thess measures provide relevant and useful information to investors and other users of our financial data in evaluating the effectiveness of our operations and underlying business trends. Adjusted Operating Revenues should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP. Our calculations of Adjusted Operating Revenues may differ from similarly titled measures reported by other companies.