EX-99.1 2 ex99_1.htm AT&T INC. SELECTED FINANCIAL STATEMENTS AND OPERATING DATA
Financial Data
                        
                         
AT&T Inc.
                        
Consolidated Statements of Income
                        
Dollars in millions except per share amounts
                        
Unaudited
  
Three Months Ended
  
Nine Months Ended
   
9/30/2014
    
9/30/2013
    
% Chg
    
9/30/2014
    
9/30/2013
    
% Chg
  
Operating Revenues
  
$
32,957
    
$
32,158
      
2.5
%
  
$
98,008
    
$
95,589
      
2.5
%
                                                 
Operating Expenses
                                                
  Cost of services and sales (exclusive of depreciation and
     amortization shown separately below)
    
14,541
      
13,403
      
8.5
%
    
42,074
      
39,227
      
7.3
%
  Selling, general and administrative
    
8,475
      
7,952
      
6.6
%
    
24,932
      
24,406
      
2.2
%
  Depreciation and amortization
    
4,539
      
4,615
      
-1.6
%
    
13,706
      
13,715
      
-0.1
%
    Total Operating Expenses
    
27,555
      
25,970
      
6.1
%
    
80,712
      
77,348
      
4.3
%
Operating Income
    
5,402
      
6,188
      
-12.7
%
    
17,296
      
18,241
      
-5.2
%
Interest Expense
    
1,016
      
829
      
22.6
%
    
2,757
      
2,481
      
11.1
%
Equity in Net Income (Loss) of Affiliates
    
(2
)
    
91
      
-
      
188
      
494
      
-61.9
%
Other Income (Expense) - Net
    
42
      
50
      
-16.0
%
    
1,456
      
370
      
-
  
Income Before Income Taxes
    
4,426
      
5,500
      
-19.5
%
    
16,183
      
16,624
      
-2.7
%
Income Tax Expense
    
1,367
      
1,595
      
-14.3
%
    
5,769
      
5,066
      
13.9
%
Net Income
    
3,059
      
3,905
      
-21.7
%
    
10,414
      
11,558
      
-9.9
%
  Less: Net Income Attributable to Noncontrolling Interest
    
(57
)
    
(91
)
    
37.4
%
    
(213
)
    
(222
)
    
4.1
%
Net Income Attributable to AT&T
  
$
3,002
    
$
3,814
      
-21.3
%
  
$
10,201
    
$
11,336
      
-10.0
%
                                                 
                                                 
Basic Earnings Per Share Attributable to AT&T
  
$
0.58
    
$
0.72
      
-19.4
%
  
$
1.96
    
$
2.10
      
-6.7
%
Weighted Average Common
     Shares Outstanding (000,000)
    
5,198
      
5,315
      
-2.2
%
    
5,208
      
5,402
      
-3.6
%
                                                 
Diluted Earnings Per Share Attributable to AT&T
  
$
0.58
    
$
0.72
      
-19.4
%
  
$
1.95
    
$
2.09
      
-6.7
%
Weighted Average Common
     Shares Outstanding with Dilution (000,000)
    
5,214
      
5,331
      
-2.2
%
    
5,224
      
5,419
      
-3.6
%
                                                 
 
 
Financial Data
                            
                             
AT&T Inc.
                            
Statements of Segment Income 
                      
Dollars in millions
                            
Unaudited
                            
   
Three Months Ended
  
Nine Months Ended
                             
Wireless
  
9/30/2014
  
9/30/2013
% Chg
  
9/30/2014
  
9/30/2013
% Chg
Segment Operating Revenues
                            
  Service
  
$
15,423
  
 
  
$
15,460
      
-0.2
%
  
$
45,958
  
 
  
$
45,892
      
0.1
%
  Equipment
    
2,914
        
2,020
      
44.3
%
    
8,175
        
5,570
      
46.8
%
    Total Segment Operating Revenues
    
18,337
        
17,480
      
4.9
%
    
54,133
        
51,462
      
5.2
%
                                                     
Segment Operating Expenses
                                                    
  Operations and support
    
11,855
        
10,982
      
7.9
%
    
34,305
        
31,932
      
7.4
%
  Depreciation and amortization
    
1,965
        
1,875
      
4.8
%
    
5,931
        
5,553
      
6.8
%
    Total Segment Operating Expenses
    
13,820
        
12,857
      
7.5
%
    
40,236
        
37,485
      
7.3
%
Segment Operating Income
    
4,517
        
4,623
      
-2.3
%
    
13,897
        
13,977
      
-0.6
%
Equity in Net Income (Loss) of Affiliates
    
(26
)
      
(18
)
    
-44.4
%
    
(75
)
      
(55
)
    
-36.4
%
Segment Income
  
$
4,491
  
 
  
$
4,605
      
-2.5
%
  
$
13,822
  
 
  
$
13,922
      
-0.7
%
                                                     
Segment Operating Income Margin
    
24.6
 %
 
    
26.4
%
            
25.7
 %
 
    
27.2
%
        
                                                     
Wireline
                                                    
Segment Operating Revenues
                                                    
  Service
  
$
14,368
  
 
  
$
14,403
      
-0.2
%
  
$
43,165
  
 
  
$
43,266
      
-0.2
%
  Equipment
    
247
        
267
      
-7.5
%
    
688
        
832
      
-17.3
%
    Total Segment Operating Revenues
    
14,615
        
14,670
      
-0.4
%
    
43,853
        
44,098
      
-0.6
%
                                                     
Segment Operating Expenses
                                                    
  Operations and support
    
10,761
        
10,385
      
3.6
%
    
31,918
        
31,137
      
2.5
%
  Depreciation and amortization
    
2,571
        
2,736
      
-6.0
%
    
7,769
        
8,146
      
-4.6
%
    Total Segment Operating Expenses
    
13,332
        
13,121
      
1.6
%
    
39,687
        
39,283
      
1.0
%
Segment Operating Income
    
1,283
        
1,549
      
-17.2
%
    
4,166
        
4,815
      
-13.5
%
Equity in Net Income of Affiliates
    
1
        
-
      
-
      
2
        
1
      
-
  
Segment Income
  
$
1,284
  
 
  
$
1,549
      
-17.1
%
  
$
4,168
  
 
  
$
4,816
      
-13.5
%
                                                     
Segment Operating Income Margin
    
8.8
 %
 
    
10.6
%
            
9.5
 %
 
    
10.9
%
        
 
 
 
Financial Data
        
         
AT&T Inc.
        
Consolidated Balance Sheets
        
Dollars in millions
        
   
9/30/14
    
12/31/13
  
   
Unaudited
      
         
Assets
        
Current Assets
        
Cash and cash equivalents
  
$
2,458
    
$
3,339
  
Accounts receivable - net of allowances for doubtful accounts of $482 and $483
    
13,445
      
12,918
  
Prepaid expenses
    
869
      
960
  
Deferred income taxes
    
1,030
      
1,199
  
Other current assets
    
8,033
      
4,780
  
Total current assets
    
25,835
      
23,196
  
Property, Plant and Equipment - Net
    
115,134
      
110,968
  
Goodwill
    
70,131
      
69,273
  
Licenses
    
60,784
      
56,433
  
Other Intangible Assets - Net
    
6,252
      
5,779
  
Investments in and Advances to Equity Affiliates
    
166
      
3,860
  
Other Assets
    
9,637
      
8,278
  
Total Assets
  
$
287,939
    
$
277,787
  
                 
Liabilities and Stockholders' Equity
                
Current Liabilities
                
Debt maturing within one year
  
$
5,109
    
$
5,498
  
Accounts payable and accrued liabilities
    
24,119
      
21,107
  
Advanced billing and customer deposits
    
4,038
      
4,212
  
Accrued taxes
    
4,328
      
1,774
  
Dividends payable
    
2,385
      
2,404
  
Total current liabilities
    
39,979
      
34,995
  
Long-Term Debt
    
70,516
      
69,290
  
Deferred Credits and Other Noncurrent Liabilities
                
Deferred income taxes
    
37,393
      
36,308
  
Postemployment benefit obligation
    
29,918
      
29,946
  
Other noncurrent liabilities
    
17,014
      
15,766
  
Total deferred credits and other noncurrent liabilities
    
84,325
      
82,020
  
Stockholders' Equity
                
Common stock
    
6,495
      
6,495
  
Additional paid-in capital
    
91,064
      
91,091
  
Retained earnings
    
34,165
      
31,141
  
Treasury stock
    
(47,037
)
    
(45,619
)
Accumulated other comprehensive income
    
7,926
      
7,880
  
Noncontrolling interest
    
506
      
494
  
Total stockholders' equity
    
93,119
      
91,482
  
Total Liabilities and Stockholders' Equity
  
$
287,939
    
$
277,787
  
 
 
 
Financial Data
        
         
AT&T Inc.
        
Consolidated Statements of Cash Flows
        
Dollars in millions
        
Unaudited
  
Nine Months Ended
September 30,
   
2014
  
2013
         
Operating Activities
        
Net income
  
$
10,414
    
$
11,558
  
Adjustments to reconcile net income to
                
  net cash provided by operating activities:
                
    Depreciation and amortization
    
13,706
      
13,715
  
    Undistributed earnings from investments in equity affiliates
    
(45
)
    
(232
)
    Provision for uncollectible accounts
    
692
      
653
  
    Deferred income tax expense
    
1,304
      
2,505
  
    Net gain from sale of investments, net of impairments
    
(1,374
)
    
(272
)
Changes in operating assets and liabilities:
                
    Accounts receivable
    
(1,269
)
    
(440
)
    Other current assets
    
(813
)
    
520
  
    Accounts payable and accrued liabilities
    
4,763
      
(420
)
Retirement benefit funding
    
(420
)
    
(175
)
Other - net
    
(1,365
)
    
(533
)
Total adjustments
    
15,179
      
15,321
  
Net Cash Provided by Operating Activities
    
25,593
      
26,879
  
                 
Investing Activities
                
Construction and capital expenditures:
                
    Capital expenditures
    
(16,829
)
    
(15,565
)
    Interest during construction
    
(178
)
    
(213
)
Acquisitions, net of cash acquired
    
(2,053
)
    
(4,025
)
Dispositions
    
6,074
      
846
  
Purchases of securities, net
    
(1,996
)
    
-
  
Return of advances to and investments in equity affiliates
    
3
      
301
  
Other
    
(1
)
    
(4
)
Net Cash Used in Investing Activities
    
(14,980
)
    
(18,660
)
                 
Financing Activities
                
Net change in short-term borrowings with
                
  original maturities of three months or less
    
(16
)
    
1,851
  
Issuance of other short-term borrowings
    
-
      
1,476
  
Repayment of other short-term borrowings
    
-
      
(1,476
)
Issuance of long-term debt
    
8,564
      
6,416
  
Repayment of long-term debt
    
(10,376
)
    
(2,131
)
Purchase of treasury stock
    
(1,617
)
    
(11,134
)
Issuance of treasury stock
    
34
      
108
  
Dividends paid
    
(7,170
)
    
(7,325
)
Other
    
(913
)
    
499
  
Net Cash Used in Financing Activities
    
(11,494
)
    
(11,716
)
Net decrease in cash and cash equivalents
    
(881
)
    
(3,497
)
Cash and cash equivalents beginning of year
    
3,339
      
4,868
  
Cash and Cash Equivalents End of Period
  
$
2,458
     $
1,371
  
 
 
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
  
Nine Months Ended
   
9/30/2014
9/30/2013
% Chg
  
9/30/2014
  
9/30/2013
  
% Chg
                         
Wireless
                        
Subscribers and Connections
                        
Total
                
118,650
      
109,460
      
8.4
%
Postpaid
                
75,105
      
72,032
      
4.3
%
Prepaid
                
11,179
      
7,425
      
50.6
%
Reseller
                
13,884
      
14,089
      
-1.5
%
Connected Devices
                
18,482
      
15,914
      
16.1
%
                                     
Wireless Net Adds
                                    
Total
    
2,007
      
989
      
-
      
3,703
      
1,912
      
93.7
%
Postpaid
    
785
      
363
      
-
      
2,436
      
1,210
      
-
  
Prepaid
    
(140
)
    
192
      
-
      
(595
)
    
19
      
-
  
Reseller
    
87
      
(285
)
    
-
      
(281
)
    
(951
)
    
70.5
%
Connected Devices
    
1,275
      
719
      
77.3
%
    
2,143
      
1,634
      
31.2
%
M&A Activity, Partitioned Customers and Other Adjs.
    
9
      
587
      
-98.5
 %    
4,571
      
591
      
-
  
                                                 
Wireless Churn
                                                
Postpaid Churn
    
0.99
%
    
1.07
%
  
-8 BP
      
0.97
%
    
1.04
%
  
-7 BP
  
Total Churn
    
1.36
%
    
1.31
%
  
5 BP
      
1.41
%
    
1.35
%
  
6 BP
  
                                                 
Other
                                                
Licensed POPs (000,000)
                            
321
      
317
      
1.3
%
                                                 
Wireline
                                                
Voice
                                                
Total Wireline Voice Connections
                            
26,220
      
29,296
      
-10.5
%
Net Change
    
(738
)
    
(932
)
    
20.8
%
    
(2,269
)
    
(2,888
)
    
21.4
%
                                                 
Broadband
                                                
Total Wireline Broadband Connections
                            
16,486
      
16,427
      
0.4
%
Net Change
    
38
      
(26
)
    
-
      
61
      
37
      
64.9
%
                                                 
Video
                                                
Total U-verse Video Connections
                            
6,067
      
5,266
      
15.2
%
Net Change
    
216
      
265
      
-18.5
%
    
607
      
730
      
-16.8
%
                                                 
Consumer Revenue Connections
                                                
Broadband1
                            
14,844
      
14,665
      
1.2
%
U-verse Video Connections
                            
6,045
      
5,249
      
15.2
%
Voice2
                            
14,880
      
16,749
      
-11.2
%
Total Consumer Revenue Connections1
                            
35,769
      
36,663
      
-2.4
%
Net Change
    
(156
)
    
(345
)
    
54.8
%
    
(621
)
    
(1,004
)
    
38.1
%
                                                 
AT&T Inc.
                                                
Construction and capital expenditures:
                                                
Capital expenditures
  
$
5,180
    
$
5,900
      
-12.2
%
  
$
16,829
    
$
15,565
      
8.1
%
Interest during construction
  
$
60
    
$
73
      
-17.8
%
  
$
178
    
$
213
      
-16.4
%
Dividends Declared per Share
  
$
0.46
    
$
0.45
      
2.2
%
  
$
1.38
    
$
1.35
      
2.2
%
End of Period Common Shares Outstanding (000,000)
                            
5,185
      
5,280
      
-1.8
%
Debt Ratio3
                            
44.8
%
    
46.9
%
  
-210 BP
  
Total Employees
                            
247,700
      
246,740
      
0.4
%
                                                 
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 4,698 as of September 30, 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 3Q14, total switched access lines were 21,464; retail business switched access lines totaled 9,509; and wholesale,
   
 national mass markets and coin switched access lines totaled 1,773. Restated switched access lines do not include ISDN lines.