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									Six Months Ended
	6/30/2015			6/30/2014			% Chg			6/30/2015			6/30/2014			% Chg
Operating Revenues
Service	$	29,541		$	29,556			-0.1	%	$	58,503		$	59,332			-1.4	%
Equipment		3,474			3,019			15.1	%		7,088			5,719			23.9	%
Total Operating Revenues		33,015			32,575			1.4	%		65,591			65,051			0.8	%
Operating Expenses
Cost of services and sales (exclusive of depreciation and      amortization shown separately below)		15,140			14,212			6.5	%		29,721			27,533			7.9	%
Selling, general and administrative		7,467			8,197			-8.9	%		15,428			16,457			-6.3	%
Depreciation and amortization		4,696			4,550			3.2	%		9,274			9,167			1.2	%
Total Operating Expenses		27,303			26,959			1.3	%		54,423			53,157			2.4	%
Operating Income		5,712			5,616			1.7	%		11,168			11,894			-6.1	%
Interest Expense		932			881			5.8	%		1,831			1,741			5.2	%
Equity in Net Income of Affiliates		33			102			-67.6	%		33			190			-82.6	%
Other Income (Expense) - Net		48			1,269			-96.2	%		118			1,414			-91.7	%
Income Before Income Taxes		4,861			6,106			-20.4	%		9,488			11,757			-19.3	%
Income Tax Expense		1,715			2,485			-31.0	%		3,066			4,402			-30.3	%
Net Income		3,146			3,621			-13.1	%		6,422			7,355			-12.7	%
Less: Net Income Attributable to Noncontrolling Interest		(102	)		(74	)		-37.8	%		(178	)		(156	)		-14.1	%
Net Income Attributable to AT&T	$	3,044		$	3,547			-14.2	%	$	6,244		$	7,199			-13.3	%
Basic Earnings Per Share Attributable to AT&T	$	0.58		$	0.68			-14.7	%	$	1.20		$	1.38			-13.0	%
Weighted Average Common      Shares Outstanding (000,000)		5,204			5,204			-			5,204			5,213			-0.2	%
Diluted Earnings Per Share Attributable to AT&T	$	0.58		$	0.68			-14.7	%	$	1.20		$	1.38			-13.0	%
Weighted Average Common      Shares Outstanding with Dilution (000,000)		5,220			5,220			-			5,220			5,229			-0.2	%

Financial Data
AT&T Inc.
Statements of Segment Income
Dollars in millions
Unaudited
	Three Months Ended										Six Months Ended
Wireless	6/30/2015				6/30/2014			% Chg			6/30/2015				6/30/2014			% Chg
Segment Operating Revenues
Service	$	15,115			$	15,148			-0.2	%	$	29,927			$	30,535			-2.0	%
Equipment		3,189				2,782			14.6	%		6,563				5,261			24.7	%
Total Segment Operating Revenues		18,304				17,930			2.1	%		36,490				35,796			1.9	%
Segment Operating Expenses
Operations and support		11,551				11,568			-0.1	%		23,232				22,450			3.5	%
Depreciation and amortization		2,073				2,035			1.9	%		4,131				3,966			4.2	%
Total Segment Operating Expenses		13,624				13,603			0.2	%		27,363				26,416			3.6	%
Segment Operating Income		4,680				4,327			8.2	%		9,127				9,380			-2.7	%
Equity in Net Income (Loss) of Affiliates		-				(29	)		-			(4	)			(49	)		91.8	%
Segment Income	$	4,680			$	4,298			8.9	%	$	9,123			$	9,331			-2.2	%
Segment Operating Income Margin		25.6		%		24.1	%					25.0		%		26.2	%
Wireline
Segment Operating Revenues
Service	$	13,981			$	14,408			-3.0	%	$	27,916			$	28,797			-3.1	%
Equipment		233				229			1.7	%		446				441			1.1	%
Total Segment Operating Revenues		14,214				14,637			-2.9	%		28,362				29,238			-3.0	%
Segment Operating Expenses
Operations and support		10,362				10,700			-3.2	%		20,625				21,157			-2.5	%
Depreciation and amortization		2,488				2,514			-1.0	%		4,964				5,198			-4.5	%
Total Segment Operating Expenses		12,850				13,214			-2.8	%		25,589				26,355			-2.9	%
Segment Operating Income		1,364				1,423			-4.1	%		2,773				2,883			-3.8	%
Equity in Net Income (Loss) of Affiliates		1				-			-			(6	)			1			-
Segment Income	$	1,365			$	1,423			-4.1	%	$	2,767			$	2,884			-4.1	%
Segment Operating Income Margin		9.6		%		9.7	%					9.8		%		9.9	%
International
Segment Operating Revenues
Service	$	445			$	-			-		$	660			$	-			-
Equipment		46				-			-			67				-			-
Total Segment Operating Revenues		491				-			-			727				-			-
Segment Operating Expenses
Operations and support		529				-			-			748				-			-
Depreciation and amortization		125				-			-			169				-			-
Total Segment Operating Expenses		654				-			-			917				-			-
Segment Operating Income (Loss)		(163	)			-			-			(190	)			-			-
Equity in Net Income of Affiliates		-				99			-			-				153			-
Segment Income (Loss)	$	(163	)		$	99			-		$	(190	)		$	153			-
Segment Operating Income Margin		(33.2	)	%		-						(26.1	)	%		-

Financial Data
AT&T Inc.
Consolidated Balance Sheets
Dollars in millions
	6/30/15			12/31/14
	Unaudited
Assets
Current Assets
Cash and cash equivalents	$	20,956		$	8,603
Accounts receivable - net of allowances for doubtful accounts of $492 and $454		13,821			14,527
Prepaid expenses		834			831
Deferred income taxes		1,131			1,142
Other current assets		6,421			6,925
Total current assets		43,163			32,028
Property, Plant and Equipment - Net		114,348			112,898
Goodwill		70,920			69,692
Licenses		80,922			60,824
Other Intangible Assets - Net		6,385			6,139
Investments in Equity Affiliates		288			250
Other Assets		10,463			10,998
Total Assets	$	326,489		$	292,829
Liabilities and Stockholders' Equity
Current Liabilities
Debt maturing within one year	$	8,603		$	6,056
Accounts payable and accrued liabilities		21,560			23,592
Advanced billing and customer deposits		4,075			4,105
Accrued taxes		3,848			1,091
Dividends payable		2,441			2,438
Total current liabilities		40,527			37,282
Long-Term Debt		105,067			76,011
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes		38,516			37,544
Postemployment benefit obligation		36,638			37,079
Other noncurrent liabilities		18,240			17,989
Total deferred credits and other noncurrent liabilities		93,394			92,612
Stockholders' Equity
Common stock		6,495			6,495
Additional paid-in capital		91,032			91,108
Retained earnings		29,086			27,736
Treasury stock		(46,793	)		(47,029	)
Accumulated other comprehensive income		7,039			8,060
Noncontrolling interest		642			554
Total stockholders' equity		87,501			86,924
Total Liabilities and Stockholders' Equity	$	326,489		$	292,829

Financial Data
AT&T Inc.
Consolidated Statements of Cash Flows
Dollars in millions
(Unaudited)
	Six months ended June 30,
	2015			2014
Operating Activities
Net income	$	6,422		$	7,355
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization		9,274			9,167
Undistributed earnings from investments in equity affiliates		(23	)		(58	)
Provision for uncollectible accounts		535			444
Deferred income tax expense		1,183			546
Net gain from sale of investments, net of impairments		(50	)		(1,365	)
Changes in operating assets and liabilities:
Accounts receivable		434			(566	)
Other current assets		743			(771	)
Accounts payable and accrued liabilities		(1,125	)		2,894
Retirement benefit funding		(455	)		(280	)
Other - net		(1,040	)		(497	)
Total adjustments		9,476			9,514
Net Cash Provided by Operating Activities		15,898			16,869
Investing Activities
Construction and capital expenditures:
Capital expenditures		(8,328	)		(11,649	)
Interest during construction		(339	)		(118	)
Acquisitions, net of cash acquired		(20,954	)		(857	)
Dispositions		72			4,921
Sale of securities		1,890			-
Return of advances to and investments in equity affiliates		-			2
Other		(1	)		-
Net Cash Used in Investing Activities		(27,660	)		(7,701	)
Financing Activities
Net change in short-term borrowings with
original maturities of three months or less		-			134
Issuance of long-term debt		33,958			8,564
Repayment of long-term debt		(2,919	)		(3,508	)
Purchase of treasury stock		-			(1,396	)
Issuance of treasury stock		20			27
Dividends paid		(4,873	)		(4,784	)
Other		(2,071	)		(239	)
Net Cash Provided by (Used in) Financing Activities		24,115			(1,202	)
Net increase in cash and cash equivalents		12,353			7,966
Cash and cash equivalents beginning of year		8,603			3,339
Cash and Cash Equivalents End of Period	$	20,956		$	11,305

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									Six Months Ended
	6/30/2015			6/30/2014			% Chg			6/30/2015			6/30/2014			% Chg
Wireless
Subscribers and Connections
Total											123,902			116,634			6.2	%
Postpaid											76,541			74,332			3.0	%
Prepaid1											10,438			10,082			3.5	%
Reseller											13,506			13,756			-1.8	%
Connected Devices1											23,417			18,464			26.8	%
Wireless Net Adds
Total		2,094			634			-			3,312			1,696			95.3	%
Postpaid		410			1,026			-60.0	%		851			1,651			-48.5	%
Prepaid		331			(286	)		-			429			(198	)		-
Reseller		(95	)		(162	)		41.4	%		(361	)		(368	)		1.9	%
Connected Devices		1,448			56			-			2,393			611			-
M&A Activity, Partitioned Customers and Other Adjs.		36			(14	)		-			36			4,562			-
Wireless Churn
Postpaid Churn		1.01	%		0.86	%	15 BP				1.01	%		0.96	%	5 BP
Total Churn		1.31	%		1.47	%	-16 BP				1.36	%		1.43	%	-7 BP
Other
Licensed POPs (000,000)											321			321			-
Wireline
Voice
Total Wireline Voice Connections											23,497			26,958			-12.8	%
Net Change		(652	)		(758	)		14.0	%		(1,281	)		(1,531	)		16.3	%
Broadband
Total Wireline Broadband Connections											15,961			16,448			-3.0	%
Net Change		(136	)		(55	)		-			(67	)		23			-
Video
Total U-verse Video Connections											5,971			5,851			2.1	%
Net Change		(22	)		190			-			28			391			-92.8	%
Consumer Revenue Connections
Broadband2											14,428			14,780			-2.4	%
U-verse Video Connections											5,946			5,831			2.0	%
Voice3											13,312			15,314			-13.1	%
Total Consumer Revenue Connections1											33,686			35,925			-6.2	%
Net Change		(489	)		(299	)		-63.5	%		(680	)		(465	)		-46.2	%
AT&T Inc.
Construction and capital expenditures:
Capital expenditures	$	4,480		$	5,933			-24.5	%	$	8,328		$	11,649			-28.5	%
Interest during construction	$	216		$	63			-		$	339		$	118			-
Dividends Declared per Share	$	0.47		$	0.46			2.2	%	$	0.94		$	0.92			2.2	%
End of Period Common Shares Outstanding (000,000)											5,193			5,191			-
Debt Ratio4											56.5	%		47.6	%	890 BP
Total Employees											250,730			248,170			1.0	%

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 5,170 as of June 30, 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 2Q15, total switched access lines were 18,116; retail business switched access lines totaled 8,331; and wholesale,
		national mass markets and coin switched access lines totaled 1,643. Restated switched access lines do not include ISDN lines.