AT&T (T) 8-K Other Events

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.