Financial Data | ||||||||||||
AT&T Inc. | ||||||||||||
Consolidated Statements of Income | ||||||||||||
Dollars in millions except per share amounts | ||||||||||||
Unaudited | Three Months Ended | |||||||||||
3/31/2016 | 3/31/2015 | % Chg | ||||||||||
Operating Revenues | ||||||||||||
Service | $ | 37,101 | $ | 28,962 | 28.1 | % | ||||||
Equipment | 3,434 | 3,614 | -5.0 | % | ||||||||
Total Operating Revenues | 40,535 | 32,576 | 24.4 | % | ||||||||
Operating Expenses | ||||||||||||
Cost of services and sales | ||||||||||||
Equipment | 4,375 | 4,546 | -3.8 | % | ||||||||
Broadcast, programming and operations | 4,629 | 1,122 | - | |||||||||
Other cost of services (exclusive of depreciation and amortization shown separately below) | 9,396 | 8,812 | 6.6 | % | ||||||||
Selling, general and administrative | 8,441 | 7,961 | 6.0 | % | ||||||||
Depreciation and amortization | 6,563 | 4,578 | 43.4 | % | ||||||||
Total Operating Expenses | 33,404 | 27,019 | 23.6 | % | ||||||||
Operating Income | 7,131 | 5,557 | 28.3 | % | ||||||||
Interest Expense | 1,207 | 899 | 34.3 | % | ||||||||
Equity in Net Income of Affiliates | 13 | - | - | |||||||||
Other Income (Expense) - Net | 70 | 70 | - | |||||||||
Income Before Income Taxes | 6,007 | 4,728 | 27.1 | % | ||||||||
Income Tax Expense | 2,122 | 1,389 | 52.8 | % | ||||||||
Net Income | 3,885 | 3,339 | 16.4 | % | ||||||||
Less: Net Income Attributable to Noncontrolling Interest | (82 | ) | (76 | ) | -7.9 | % | ||||||
Net Income Attributable to AT&T | $ | 3,803 | $ | 3,263 | 16.5 | % | ||||||
Basic Earnings Per Share Attributable to AT&T | $ | 0.62 | $ | 0.63 | -1.6 | % | ||||||
Weighted Average Common Shares Outstanding (000,000) | 6,172 | 5,203 | 18.6 | % | ||||||||
Diluted Earnings Per Share Attributable to AT&T | $ | 0.61 | $ | 0.63 | -3.2 | % | ||||||
Weighted Average Common Shares Outstanding with Dilution (000,000) | 6,190 | 5,219 | 18.6 | % |
Financial Data | |||||||||||||
AT&T Inc. | |||||||||||||
Statements of Segment Income | |||||||||||||
Dollars in millions | |||||||||||||
Unaudited | |||||||||||||
Three Months Ended | |||||||||||||
3/31/2016 | 3/31/2015 | % Chg | |||||||||||
Business Solutions | |||||||||||||
Segment Operating Revenues | |||||||||||||
Wireless service | $ | 7,855 | $ | 7,515 | 4.5 | % | |||||||
Fixed strategic services | 2,786 | 2,549 | 9.3 | % | |||||||||
Legacy voice and data services | 4,338 | 4,754 | -8.8 | % | |||||||||
Other service and equipment | 859 | 846 | 1.5 | % | |||||||||
Wireless Equipment | 1,771 | 1,893 | -6.4 | % | |||||||||
Total Segment Operating Revenues | 17,609 | 17,557 | 0.3 | % | |||||||||
Segment Operating Expenses | |||||||||||||
Operations and Support Expenses | 10,802 | 11,073 | -2.4 | % | |||||||||
Depreciation and amortization | 2,508 | 2,342 | 7.1 | % | |||||||||
Total Segment Operating Expenses | 13,310 | 13,415 | -0.8 | % | |||||||||
Segment Operating Income | 4,299 | 4,142 | 3.8 | % | |||||||||
Equity in Net Income of Affiliates | - | - | - | ||||||||||
Segment Contribution | $ | 4,299 | $ | 4,142 | 3.8 | % | |||||||
Segment Operating Income Margin | 24.4 | % | 23.6 | % | |||||||||
Entertainment Group | |||||||||||||
Segment Operating Revenues | |||||||||||||
Video entertainment | $ | 8,904 | $ | 1,871 | - | ||||||||
High-speed internet | 1,803 | 1,553 | 16.1 | % | |||||||||
Legacy voice and data services | 1,313 | 1,612 | -18.5 | % | |||||||||
Other service and equipment | 638 | 624 | 2.2 | % | |||||||||
Total Segment Operating Revenues | 12,658 | 5,660 | - | ||||||||||
Segment Operating Expenses | |||||||||||||
Operations and Support Expenses | 9,578 | 4,859 | 97.1 | % | |||||||||
Depreciation and amortization | 1,488 | 1,065 | 39.7 | % | |||||||||
Total Segment Operating Expenses | 11,066 | 5,924 | 86.8 | % | |||||||||
Segment Operating Income (Loss) | 1,592 | (264 | ) | - | |||||||||
Equity in Net Income (Loss) of Affiliates | 3 | (6 | ) | - | |||||||||
Segment Contribution | $ | 1,595 | $ | (270 | ) | - | |||||||
Segment Operating Income Margin | 12.6 | % | -4.7 | % | |||||||||
Consumer Mobility | |||||||||||||
Segment Operating Revenues | |||||||||||||
Service | $ | 6,943 | $ | 7,297 | -4.9 | % | |||||||
Equipment | 1,385 | 1,481 | -6.5 | % | |||||||||
Total Segment Operating Revenues | 8,328 | 8,778 | -5.1 | % | |||||||||
Segment Operating Expenses | |||||||||||||
Operations and Support Expenses | 4,912 | 5,541 | -11.4 | % | |||||||||
Depreciation and amortization | 922 | 1,002 | -8.0 | % | |||||||||
Total Segment Operating Expenses | 5,834 | 6,543 | -10.8 | % | |||||||||
Segment Operating Income | 2,494 | 2,235 | 11.6 | % | |||||||||
Equity in Net Income of Affiliates | - | - | - | ||||||||||
Segment Contribution | $ | 2,494 | $ | 2,235 | 11.6 | % | |||||||
Segment Operating Income Margin | 29.9 | % | 25.5 | % | |||||||||
International | |||||||||||||
Segment Operating Revenues | |||||||||||||
Video entertainment | $ | 1,130 | $ | - | - | ||||||||
Wireless service | 455 | 215 | - | ||||||||||
Wireless Equipment | 82 | 21 | - | ||||||||||
Total Segment Operating Revenues | 1,667 | 236 | - | ||||||||||
Segment Operating Expenses | |||||||||||||
Operations and Support Expenses | 1,588 | 218 | - | ||||||||||
Depreciation and amortization | 277 | 28 | - | ||||||||||
Total Segment Operating Expenses | 1,865 | 246 | - | ||||||||||
Segment Operating Income (Loss) | (198 | ) | (10 | ) | - | ||||||||
Equity in Net Income of Affiliates | 14 | - | - | ||||||||||
Segment Contribution | $ | (184 | ) | $ | (10 | ) | - | ||||||
Segment Operating Income Margin | -11.9 | % | -4.2 | % |
Financial Data | ||||||||
AT&T Inc. | ||||||||
Consolidated Balance Sheets | ||||||||
Dollars in millions | ||||||||
3/31/2016 | 12/31/2015 | |||||||
Unaudited | ||||||||
Assets | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 10,008 | $ | 5,121 | ||||
Accounts receivable - net of allowances for doubtful accounts of $697 and $704 | 16,070 | 16,532 | ||||||
Prepaid expenses | 1,378 | 1,072 | ||||||
Other current assets | 10,545 | 13,267 | ||||||
Total current assets | 38,001 | 35,992 | ||||||
Property, Plant and Equipment - Net | 123,454 | 124,450 | ||||||
Goodwill | 104,651 | 104,568 | ||||||
Licenses | 94,130 | 93,093 | ||||||
Customer Lists and Relationships - Net | 17,197 | 18,208 | ||||||
Other Intangible Assets - Net | 9,108 | 9,409 | ||||||
Investments in Equity Affiliates | 1,594 | 1,606 | ||||||
Other Assets | 15,503 | 15,346 | ||||||
Total Assets | $ | 403,638 | $ | 402,672 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current Liabilities | ||||||||
Debt maturing within one year | $ | 8,399 | $ | 7,636 | ||||
Accounts payable and accrued liabilities | 26,169 | 30,372 | ||||||
Advanced billing and customer deposits | 4,550 | 4,682 | ||||||
Accrued taxes | 2,455 | 2,176 | ||||||
Dividends payable | 2,955 | 2,950 | ||||||
Total current liabilities | 44,528 | 47,816 | ||||||
Long-Term Debt | 122,104 | 118,515 | ||||||
Deferred Credits and Other Noncurrent Liabilities | ||||||||
Deferred income taxes | 57,489 | 56,181 | ||||||
Postemployment benefit obligation | 34,114 | 34,262 | ||||||
Other noncurrent liabilities | 20,998 | 22,258 | ||||||
Total deferred credits and other noncurrent liabilities | 112,601 | 112,701 | ||||||
Stockholders' Equity | ||||||||
Common stock | 6,495 | 6,495 | ||||||
Additional paid-in capital | 89,414 | 89,763 | ||||||
Retained earnings | 34,506 | 33,671 | ||||||
Treasury stock | (12,163 | ) | (12,592 | ) | ||||
Accumulated other comprehensive income | 5,180 | 5,334 | ||||||
Noncontrolling interest | 973 | 969 | ||||||
Total stockholders' equity | 124,405 | 123,640 | ||||||
Total Liabilities and Stockholders' Equity | $ | 403,638 | $ | 402,672 |
Financial Data | ||||||||
AT&T Inc. | ||||||||
Consolidated Statements of Cash Flows | ||||||||
Dollars in millions | ||||||||
(Unaudited) | ||||||||
Three Months Ended | ||||||||
3/31/2016 | 3/31/2015 | |||||||
Operating Activities | ||||||||
Net income | $ | 3,885 | $ | 3,339 | ||||
Adjustments to reconcile net income to | ||||||||
net cash provided by operating activities: | ||||||||
Depreciation and amortization | 6,563 | 4,578 | ||||||
Undistributed earnings from investments in equity affiliates | (13 | ) | - | |||||
Provision for uncollectible accounts | 374 | 285 | ||||||
Deferred income tax expense | 1,346 | 252 | ||||||
Net gain from sale of investments, net of impairments | (44 | ) | (33 | ) | ||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 627 | 739 | ||||||
Other current assets | 612 | 408 | ||||||
Accounts payable and accrued liabilities | (4,006 | ) | (1,817 | ) | ||||
Retirement benefit funding | (140 | ) | (140 | ) | ||||
Other - net | (1,304 | ) | (873 | ) | ||||
Total adjustments | 4,015 | 3,399 | ||||||
Net Cash Provided by Operating Activities | 7,900 | 6,738 | ||||||
Investing Activities | ||||||||
Construction and capital expenditures: | ||||||||
Capital expenditures | (4,451 | ) | (3,848 | ) | ||||
Interest during construction | (218 | ) | (123 | ) | ||||
Acquisitions, net of cash acquired | (165 | ) | (19,514 | ) | ||||
Dispositions | 81 | 8 | ||||||
Sales of securities, net | 445 | 1,890 | ||||||
Net Cash Used in Investing Activities | (4,308 | ) | (21,587 | ) | ||||
Financing Activities | ||||||||
Issuance of long-term debt | 5,978 | 16,572 | ||||||
Repayment of long-term debt | (2,296 | ) | (596 | ) | ||||
Issuance of treasury stock | 89 | 8 | ||||||
Dividends paid | (2,947 | ) | (2,434 | ) | ||||
Other | 471 | (2,860 | ) | |||||
Net Cash Provided by Financing Activities | 1,295 | 10,690 | ||||||
Net increase (decrease) in cash and cash equivalents | 4,887 | (4,159 | ) | |||||
Cash and cash equivalents beginning of year | 5,121 | 8,603 | ||||||
Cash and Cash Equivalents End of Period | $ | 10,008 | $ | 4,444 |
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 | |||||||||||
3/31/2016 | 3/31/2015 | % Chg | ||||||||||
Business Solutions Wireless Subscribers | 75,771 | 66,945 | 13.2 | % | ||||||||
Postpaid | 48,844 | 45,959 | 6.3 | % | ||||||||
Reseller | 64 | 14 | - | |||||||||
Connected Devices | 26,863 | 20,972 | 28.1 | % | ||||||||
Business Solutions Wireless Net Adds | 1,689 | 1,324 | 27.6 | % | ||||||||
Postpaid | 133 | 297 | -55.2 | % | ||||||||
Reseller | (22 | ) | 3 | - | ||||||||
Connected Devices | 1,578 | 1,024 | 54.1 | % | ||||||||
Business Wireless Postpaid Churn | 1.02 | % | 0.90 | % | 12 | BP | ||||||
Consumer Mobility Subscribers | 54,674 | 54,827 | -0.3 | % | ||||||||
Postpaid | 28,294 | 30,216 | -6.4 | % | ||||||||
Prepaid | 12,171 | 10,037 | 21.3 | % | ||||||||
Reseller | 13,313 | 13,581 | -2.0 | % | ||||||||
Connected Devices | 896 | 993 | -9.8 | % | ||||||||
Consumer Mobility Net Adds | 92 | (106 | ) | - | ||||||||
Postpaid | (4 | ) | 144 | - | ||||||||
Prepaid | 500 | 98 | - | |||||||||
Reseller | (378 | ) | (269 | ) | -40.5 | % | ||||||
Connected Devices | (26 | ) | (79 | ) | 67.1 | % | ||||||
Consumer Mobility Postpaid Churn | 1.24 | % | 1.20 | % | 4 | BP | ||||||
Total Consumer Mobility Churn | 2.11 | % | 2.04 | % | 7 | BP | ||||||
Entertainment Group | 51,748 | 34,175 | 51.4 | % | ||||||||
Video Connections | 25,344 | 5,969 | - | |||||||||
Satellite | 20,112 | - | - | |||||||||
U-verse | 5,232 | 5,969 | -12.3 | % | ||||||||
Video Net Adds | (54 | ) | 49 | - | ||||||||
Satellite | 328 | - | - | |||||||||
U-verse | (382 | ) | 49 | - | ||||||||
Broadband Connections | 14,291 | 14,537 | -1.7 | % | ||||||||
IP | 12,542 | 11,796 | 6.3 | % | ||||||||
DSL | 1,749 | 2,741 | -36.2 | % | ||||||||
Broadband Net Adds | 5 | 93 | -94.6 | % | ||||||||
IP | 186 | 413 | -55.0 | % | ||||||||
DSL | (181 | ) | (320 | ) | 43.4 | % | ||||||
Total Wireline Voice Connections | 12,113 | 13,669 | -11.4 | % | ||||||||
AT&T International | ||||||||||||
Mexican Wireless Subscribers and Connections | ||||||||||||
Subscribers | 9,213 | 5,728 | 60.8 | % | ||||||||
Net Adds | 529 | - | - | |||||||||
Total Churn | 5.45 | % | - | - | ||||||||
Video Subscribers and Connections | ||||||||||||
Latin America Video Subscribers | 12,436 | - | - | |||||||||
Pan Americana | 7,094 | - | - | |||||||||
Brazil | 5,342 | - | - | |||||||||
Video Subscribers and Connections Net Adds | ||||||||||||
Latin America Video Subscribers | (73 | ) | - | - | ||||||||
Pan Americana | 28 | - | - | |||||||||
Brazil | (101 | ) | - | - |
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 | |||||||||||
3/31/2016 | 3/31/2015 | % Chg | ||||||||||
AT&T Total Subscribers and Connections | ||||||||||||
AT&T Mobility Subscribers | 130,445 | 121,772 | 7.1 | % | ||||||||
Postpaid | 77,138 | 76,175 | 1.3 | % | ||||||||
Prepaid | 12,171 | 10,037 | 21.3 | % | ||||||||
Branded | 89,309 | 86,212 | 3.6 | % | ||||||||
Reseller | 13,378 | 13,595 | -1.6 | % | ||||||||
Connected Devices | 27,758 | 21,965 | 26.4 | % | ||||||||
AT&T Mobility Net Adds | 1,781 | 1,218 | 46.2 | % | ||||||||
Postpaid | 129 | 441 | -70.7 | % | ||||||||
Prepaid | 500 | 98 | - | |||||||||
Branded | 629 | 539 | 16.7 | % | ||||||||
Reseller | (400 | ) | (266 | ) | -50.4 | % | ||||||
Connected Devices | 1,552 | 945 | 64.2 | % | ||||||||
M&A Activity, Partitioned Customers and Other Adjs. | 24 | - | - | |||||||||
AT&T Mobility Churn | ||||||||||||
Postpaid Churn | 1.10 | % | 1.02 | % | 8 | BP | ||||||
Total Churn | 1.42 | % | 1.40 | % | 2 | BP | ||||||
Other | ||||||||||||
Domestic Licensed POPs (000,000) | 322 | 321 | 0.3 | % | ||||||||
Total Video Subscribers | 37,808 | 5,993 | - | |||||||||
Domestic | 25,372 | 5,993 | - | |||||||||
Pan Americana | 7,094 | - | - | |||||||||
Brazil | 5,342 | - | - | |||||||||
Total Video Net Adds | (125 | ) | 50 | - | ||||||||
Domestic | (52 | ) | 50 | - | ||||||||
Pan Americana | 28 | - | - | |||||||||
Brazil | (101 | ) | - | - | ||||||||
Total Broadband Connections | 15,764 | 16,097 | -2.1 | % | ||||||||
IP | 13,470 | 12,644 | 6.5 | % | ||||||||
DSL | 2,294 | 3,453 | -33.6 | % | ||||||||
Broadband Net Adds | (14 | ) | 69 | - | ||||||||
IP | 202 | 439 | -54.0 | % | ||||||||
DSL | (216 | ) | (370 | ) | 41.6 | % | ||||||
Total Wireline Voice Connections | 21,459 | 24,149 | -11.1 | % | ||||||||
Total Wireless Subscribers | 139,658 | 127,500 | 9.5 | % | ||||||||
Domestic Wireless Subscribers | 130,445 | 121,772 | 7.1 | % | ||||||||
Mexican Wireless Subscribers | 9,213 | 5,728 | 60.8 | % | ||||||||
Branded Subscribers | 98,158 | 91,448 | 7.3 | % | ||||||||
Branded Net Adds | 1,195 | 539 | - | |||||||||
AT&T Inc. | ||||||||||||
Construction and capital expenditures: | ||||||||||||
Capital expenditures | $ | 4,451 | $ | 3,848 | 15.7 | % | ||||||
Interest during construction | $ | 218 | $ | 123 | 77.2 | % | ||||||
Dividends Declared per Share | $ | 0.48 | $ | 0.47 | 2.1 | % | ||||||
End of Period Common Shares Outstanding (000,000) | 6,156 | 5,193 | 18.5 | % | ||||||||
Debt Ratio1,2 | 51.2 | % | 51.5 | % | -30 | BP | ||||||
Total Employees | 280,870 | 250,790 | 12.0 | % | ||||||||
1 | Prior year amounts restated to conform to current period reporting methodology. | |
2 | Total long-term debt plus debt maturing within one year divided by total debt plus total stockholders' equity. | |
Note: For the end of 1Q16, total switched access lines were 15,975. | ||
Business Solutions and Consumer Mobility may not total to AT&T Mobility due to rounding. |
Financial Data | |||||||||||||
AT&T Inc. | |||||||||||||
Supplemental AT&T Mobility Results | |||||||||||||
Dollars in millions | |||||||||||||
Unaudited | |||||||||||||
Three Months Ended | |||||||||||||
3/31/2016 | 3/31/2015 | % Chg | |||||||||||
AT&T Mobility | |||||||||||||
Operating Revenues | |||||||||||||
Service | $ | 14,798 | $ | 14,812 | -0.1 | % | |||||||
Equipment | 3,156 | 3,374 | -6.5 | % | |||||||||
Total Operating Revenues | 17,954 | 18,186 | -1.3 | % | |||||||||
Operating Expenses | |||||||||||||
Operations and support expenses | 10,624 | 11,472 | -7.4 | % | |||||||||
Depreciation and amortization | 2,056 | 2,005 | 2.5 | % | |||||||||
Total Operating Expenses | 12,680 | 13,477 | -5.9 | % | |||||||||
Operating Income | $ | 5,274 | $ | 4,709 | 12.0 | % | |||||||
Operating Income Margin | 29.4 | % | 25.9 | % |
Financial Data | ||||||||||||||||||||||||||||
AT&T Inc. | ||||||||||||||||||||||||||||
Segment Supplemental | ||||||||||||||||||||||||||||
Dollars in millions except per share amounts | ||||||||||||||||||||||||||||
For the three months ended March 31, 2016 | ||||||||||||||||||||||||||||
Revenues | Operations and Support Expenses | EBITDA | Depreciation and Amortization | Operating Income (Loss) | Equity in Net Income of Affiliates | Segment Contribution | ||||||||||||||||||||||
Business Solutions | $ | 17,609 | $ | 10,802 | $ | 6,807 | $ | 2,508 | $ | 4,299 | $ | - | $ | 4,299 | ||||||||||||||
Entertainment Group | 12,658 | 9,578 | 3,080 | 1,488 | 1,592 | 3 | 1,595 | |||||||||||||||||||||
Consumer Mobility | 8,328 | 4,912 | 3,416 | 922 | 2,494 | - | 2,494 | |||||||||||||||||||||
International | 1,667 | 1,588 | 79 | 277 | (198 | ) | 14 | (184 | ) | |||||||||||||||||||
Segment Total | $ | 40,262 | $ | 26,880 | $ | 13,382 | $ | 5,195 | $ | 8,187 | $ | 17 | $ | 8,204 | ||||||||||||||
Corporate and Other | 273 | 377 | (104 | ) | 17 | (121 | ) | |||||||||||||||||||||
Acquisition-related items | - | 295 | (295 | ) | 1,351 | (1,646 | ) | |||||||||||||||||||||
Certain Significant items | - | (711 | ) | 711 | - | 711 | ||||||||||||||||||||||
AT&T Inc. | $ | 40,535 | $ | 26,841 | $ | 13,694 | $ | 6,563 | $ | 7,131 | ||||||||||||||||||
For the three months ended March 31, 2015 | ||||||||||||||||||||||||||||
Revenues | Operations and Support Expenses | EBITDA | Depreciation and Amortization | Operating Income (Loss) | Equity in Net Income of Affiliates | Segment Contribution | ||||||||||||||||||||||
Business Solutions | $ | 17,557 | $ | 11,073 | $ | 6,484 | $ | 2,342 | $ | 4,142 | $ | - | $ | 4,142 | ||||||||||||||
Entertainment Group | 5,660 | 4,859 | 801 | 1,065 | (264 | ) | (6 | ) | (270 | ) | ||||||||||||||||||
Consumer Mobility | 8,778 | 5,541 | 3,237 | 1,002 | 2,235 | - | 2,235 | |||||||||||||||||||||
International | 236 | 218 | 18 | 28 | (10 | ) | - | (10 | ) | |||||||||||||||||||
Segment Total | $ | 32,231 | $ | 21,691 | $ | 10,540 | $ | 4,437 | $ | 6,103 | $ | (6 | ) | $ | 6,097 | |||||||||||||
Corporate and Other | 345 | 234 | 111 | 20 | 91 | |||||||||||||||||||||||
Acquisition-related items | - | 299 | (299 | ) | 121 | (420 | ) | |||||||||||||||||||||
Certain Significant items | - | 217 | (217 | ) | - | (217 | ) | |||||||||||||||||||||
AT&T Inc. | $ | 32,576 | $ | 22,441 | $ | 10,135 | $ | 4,578 | $ | 5,557 |