AT&T 8K Other Events | T 23 Apr 15

Financial Data

AT&T Inc.
Consolidated Statements of Income
Dollars in millions except per share amounts
Unaudited	Three Months Ended
	3/31/2015			3/31/2014			% Chg
Operating Revenues
Service	$	28,962		$	29,776			-2.7	%
Equipment		3,614			2,700			33.9	%
Total Operating Revenues		32,576			32,476			0.3	%

Operating Expenses
Cost of services and sales (exclusive of depreciation and amortization shown separately below)		14,581			13,321			9.5	%
Selling, general and administrative		7,961			8,260			-3.6	%
Depreciation and amortization		4,578			4,617			-0.8	%
Total Operating Expenses		27,120			26,198			3.5	%
Operating Income		5,456			6,278			-13.1	%
Interest Expense		899			860			4.5	%
Equity in Net Income of Affiliates		-			88			-
Other Income (Expense) - Net		70			145			-51.7	%
Income Before Income Taxes		4,627			5,651			-18.1	%
Income Tax Expense		1,351			1,917			-29.5	%
Net Income		3,276			3,734			-12.3	%
Less: Net Income Attributable to Noncontrolling Interest		(76	)		(82	)		7.3	%
Net Income Attributable to AT&T	$	3,200		$	3,652			-12.4	%


Basic Earnings Per Share Attributable to AT&T	$	0.61		$	0.70			-12.9	%
Weighted Average Common Shares Outstanding (000,000)		5,203			5,222			-0.4	%

Diluted Earnings Per Share Attributable to AT&T	$	0.61		$	0.70			-12.9	%
Weighted Average Common Shares Outstanding with Dilution (000,000)		5,219			5,238			-0.4	%

Financial Data

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

Wireless	3/31/2015				3/31/2014				% Chg
Segment Operating Revenues
Service	$	14,812			$	15,387				-3.7	%
Equipment		3,374				2,479				36.1	%
Total Segment Operating Revenues		18,186				17,866				1.8	%

Segment Operating Expenses
Operations and support		11,681				10,882				7.3	%
Depreciation and amortization		2,058				1,931				6.6	%
Total Segment Operating Expenses		13,739				12,813				7.2	%
Segment Operating Income		4,447				5,053				-12.0	%
Equity in Net Income (Loss) of Affiliates		(4	)			(20	)			80.0	%
Segment Income	$	4,443			$	5,033				-11.7	%

Segment Operating Income Margin		24.5		%		28.3		%

Wireline
Segment Operating Revenues
Service	$	13,935			$	14,389				-3.2	%
Equipment		213				212				0.5	%
Total Segment Operating Revenues		14,148				14,601				-3.1	%

Segment Operating Expenses
Operations and support		10,263				10,457				-1.9	%
Depreciation and amortization		2,476				2,684				-7.7	%
Total Segment Operating Expenses		12,739				13,141				-3.1	%
Segment Operating Income		1,409				1,460				-3.5	%
Equity in Net Income (Loss) of Affiliates		(7	)			1				-
Segment Income	$	1,402			$	1,461				-4.0	%

Segment Operating Income Margin		10.0		%		10.0		%

International
Segment Operating Revenues
Service	$	215				-
Equipment		21				-
Total Segment Operating Revenues		236				-
						-
Segment Operating Expenses
Operations and support		219				-
Depreciation and amortization		44				-
Total Segment Operating Expenses		263				-
Segment Operating Income (Loss)		(27	)			-
Equity in Net Income of Affiliates		-				-
Segment Income (Loss)	$	(27	)			-

Segment Operating Income Margin		(11.4	)	%

Financial Data

AT&T Inc.
Consolidated Balance Sheets
Dollars in millions
	3/31/15			12/31/14
	Unaudited

Assets
Current Assets
Cash and cash equivalents	$	4,444		$	8,603
Accounts receivable - net of allowances for doubtful accounts of $488 and $454		13,592			14,527
Prepaid expenses		930			831
Deferred income taxes		1,538			1,142
Other current assets		6,906			6,925
Total current assets		27,410			32,028
Property, Plant and Equipment - Net		113,198			112,898
Goodwill		70,341			69,692
Licenses		80,560			60,824
Other Intangible Assets - Net		6,423			6,139
Investments in Equity Affiliates		266			250
Other Assets		9,830			10,998
Total Assets	$	308,028		$	292,829

Liabilities and Stockholders' Equity
Current Liabilities
Debt maturing within one year	$	8,181		$	6,056
Accounts payable and accrued liabilities		20,418			23,592
Advanced billing and customer deposits		4,221			4,105
Accrued taxes		2,390			1,091
Dividends payable		2,441			2,438
Total current liabilities		37,651			37,282
Long-Term Debt		88,272			76,011
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes		38,019			37,544
Postemployment benefit obligation		37,074			37,079
Other noncurrent liabilities		19,908			17,989
Total deferred credits and other noncurrent liabilities		95,001			92,612
Stockholders' Equity
Common stock		6,495			6,495
Additional paid-in capital		90,977			91,108
Retained earnings		28,490			27,736
Treasury stock		(46,804	)		(47,029	)
Accumulated other comprehensive income		7,341			8,060
Noncontrolling interest		605			554
Total stockholders' equity		87,104			86,924
Total Liabilities and Stockholders' Equity	$	308,028		$	292,829

Financial Data

AT&T Inc.
Consolidated Statements of Cash Flows
Dollars in millions
	Three months ended March 31,
	2015			2014

Operating Activities
Net income	$	3,276		$	3,734
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization		4,578			4,617
Undistributed earnings from investments in equity affiliates		-			17
Provision for uncollectible accounts		285			241
Deferred income tax expense		214			578
Net gain from sale of investments, net of impairments		(33	)		(122	)
Changes in operating assets and liabilities:
Accounts receivable		739			(498	)
Other current assets		13			(340	)
Accounts payable and accrued liabilities		(1,817	)		1,025
Retirement benefit funding		(140	)		(140	)
Other - net		(377	)		(313	)
Total adjustments		3,462			5,065
Net Cash Provided by Operating Activities		6,738			8,799

Investing Activities
Construction and capital expenditures:
Capital expenditures		(3,848	)		(5,716	)
Interest during construction		(123	)		(55	)
Acquisitions, net of cash acquired		(19,514	)		(662	)
Dispositions		8			351
Sale of securities		1,890			-
Net Cash Used in Investing Activities		(21,587	)		(6,082	)

Financing Activities
Net change in short-term borrowings with
original maturities of three months or less		-			(17	)
Issuance of long-term debt		16,572			2,987
Repayment of long-term debt		(596	)		(1,867	)
Purchase of treasury stock		-			(1,237	)
Issuance of treasury stock		8			13
Dividends paid		(2,434	)		(2,398	)
Other		(2,860	)		74
Net Cash Provided by (Used in) Financing Activities		10,690			(2,445	)
Net (decrease) increase in cash and cash equivalents		(4,159	)		272
Cash and cash equivalents beginning of year		8,603			3,339
Cash and Cash Equivalents End of Period	$	4,444		$	3,611

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
	3/31/2015			3/31/2014			% Chg

Wireless
Subscribers and Connections
Total		121,772			116,014			5.0	%
Postpaid		76,175			73,291			3.9	%
Prepaid¹		10,037			10,411			-3.6	%
Reseller		13,595			13,886			-2.1	%
Connected Devices¹		21,965			18,426			19.2	%

Wireless Net Adds
Total		1,218			1,062			14.7	%
Postpaid		441			625			-29.4	%
Prepaid¹		98			88			11.4	%
Reseller		(266	)		(206	)		-29.1	%
Connected Devices¹		945			555			70.3	%
M&A Activity, Partitioned Customers and Other Adjs.		-			4,576			-

Wireless Churn
Postpaid Churn		1.02	%		1.07	%	-5 BP
Total Churn		1.40	%		1.39	%	1 BP

Other
Licensed POPs (000,000)		321			321			-

Wireline
Voice
Total Wireline Voice Connections		24,149			27,716			-12.9	%
Net Change		(629	)		(773	)		18.6	%

Broadband
Total Wireline Broadband Connections		16,097			16,503			-2.5	%
Net Change		69			78			-11.5	%

Video
Total U-verse Video Connections		5,993			5,661			5.9	%
Net Change		50			201			-75.1	%

Consumer Revenue Connections
Broadband²		14,537			14,807			-1.8	%
U-verse Video Connections		5,969			5,642			5.8	%
Voice³		13,669			15,775			-13.4	%
Total Consumer Revenue Connections²		34,175			36,224			-5.7	%
Net Change		(191	)		(166	)		-15.1	%

AT&T Inc.
Construction and capital expenditures:
Capital expenditures	$	3,848		$	5,716			-32.7	%
Interest during construction	$	123		$	55			-
Dividends Declared per Share	$	0.47		$	0.46			2.2	%
End of Period Common Shares Outstanding (000,000)		5,193			5,195			-
Debt Ratio⁴		52.5	%		46.6	%	590 BP
Total Employees		250,790			246,730			1.6	%

¹	Prior year amounts restated to conform to current period reporting methodology.
²	Consumer wireline broadband connections include DSL lines, U-verse high speed Internet access and satellite broadband.
³	Includes consumer U-verse Voice over Internet Protocol connections of 5,009 as of March 31, 2015.
⁴	Total long-term debt plus debt maturing within one year divided by total debt plus total stockholders' equity. Note: For the end of 1Q15, total switched access lines were 18,949; retail business switched access lines totaled 8,784; and wholesale, national mass markets and coin switched access lines totaled 1,505.

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