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 | % |
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. |