EX-99.2 3 ex99_2.htm AT&T INC. SELECTED FINANCIAL STATEMENTS AND OPERATING DATA. ex99_2.htm
Financial Data
                                    
                                     
AT&T Inc.
                                    
Consolidated Statements of Income
                                    
Dollars in millions except per share amounts
                                    
Unaudited
  
Three Months Ended
  
Nine Months Ended
   
9/30/2009
    
9/30/2008
    
% Chg
  
9/30/2009
    
9/30/2008
    
% Chg
Operating Revenues
                                    
  Wireless service
   $ 12,372     $ 11,227       10.2 %   $ 35,978     $ 32,726       9.9 %
  Voice
     7,940       9,313       -14.7 %     24,702       28,525       -13.4 %
  Data
     6,424       6,144       4.6 %     18,981       18,170       4.5 %
  Directory
     1,162       1,333       -12.8 %     3,622       4,114       -12.0 %
  Other
     2,957       3,325       -11.1 %     8,877       9,417       -5.7 %
    Total Operating Revenues
     30,855       31,342       -1.6 %     92,160       92,952       -0.9 %
                                                 
Operating Expenses
                                                
  Cost of services and sales (exclusive of
                                                
     depreciation and amortization shown separately below)
     12,885       13,022       -1.1 %     37,605       36,914       1.9 %
  Selling, general and administrative
     7,672       7,724       -0.7 %     23,225       23,034       0.8 %
  Depreciation and amortization
     4,910       4,978       -1.4 %     14,699       14,839       -0.9 %
    Total Operating Expenses
     25,467       25,724       -1.0 %     75,529       74,787       1.0 %
Operating Income
     5,388       5,618       -4.1 %     16,631       18,165       -8.4 %
Interest Expense
     853       858       -0.6 %     2,581       2,577       0.2 %
Equity in Net Income of Affiliates
     181       257       -29.6 %     549       712       -22.9 %
Other Income (Expense) - Net
     27       (23 )     -       43       97       -55.7 %
Income Before Income Taxes
     4,743       4,994       -5.0 %     14,642       16,397       -10.7 %
Income Taxes
     1,468       1,705       -13.9 %     4,890       5,746       -14.9 %
Net Income
     3,275       3,289       -0.4 %     9,752       10,651       -8.4 %
  Less: Net Income Attributable to Noncontrolling Interest
     (83 )     (59 )     -40.7 %     (236 )     (188 )     -25.5 %
Net Income Attributable to AT&T
   $ 3,192     $ 3,230       -1.2 %   $ 9,516     $ 10,463       -9.1 %
                                                 
                                                 
Basic Earnings Per Share Attributable to AT&T
   $ 0.54     $ 0.55       -1.8 %   $ 1.61     $ 1.76       -8.5 %
Weighted Average Common
                                                
  Shares Outstanding (000,000)
     5,901       5,893       0.1 %     5,899       5,938       -0.7 %
                                                 
Diluted Earnings Per Share Attributable to AT&T
   $ 0.54     $ 0.55       -1.8 %   $ 1.61     $ 1.75       -8.0 %
Weighted Average Common
                                                
  Shares Outstanding with Dilution (000,000)
     5,922       5,921       0.0 %     5,922       5,971       -0.8 %
                                                 
 
 
 
Financial Data
                                    
                                     
AT&T Inc.
                                    
Statements of Segment Income
                                    
Dollars in millions
                                    
Unaudited
                                    
   
Three Months Ended
  
Nine Months Ended
                                     
Wireless
  
9/30/2009
    
9/30/2008
    
% Chg
  
9/30/2009
    
9/30/2008
    
% Chg
Segment Operating Revenues
                                    
  Service
   $ 12,399     $ 11,273       10.0 %   $ 36,050     $ 32,869       9.7 %
  Equipment
     1,255       1,345       -6.7 %     3,709       3,607       2.8 %
    Total Segment Operating Revenues
     13,654       12,618       8.2 %     39,759       36,476       9.0 %
                                                 
Segment Operating Expenses
                                                
  Operations and support
     8,877       8,838       0.4 %     25,620       23,750       7.9 %
  Depreciation and amortization
     1,418       1,401       1.2 %     4,288       4,327       -0.9 %
    Total Segment Operating Expenses
     10,295       10,239       0.5 %     29,908       28,077       6.5 %
Segment Operating Income
     3,359       2,379       41.2 %     9,851       8,399       17.3 %
Equity in Net Income of Affiliates
     -       -       -       -       5       -  
Segment Income
   $ 3,359     $ 2,379       41.2 %   $ 9,851     $ 8,404       17.2 %
                                                 
Segment Operating Income Margin
     24.6 %     18.9 %             24.8 %     23.0 %        
                                                 
                                                 
Wireline
                                                
Segment Operating Revenues
                                                
  Voice
   $ 8,132     $ 9,515       -14.5 %   $ 25,289     $ 29,191       -13.4 %
  Data
     6,747       6,401       5.4 %     19,900       18,893       5.3 %
  Other
     1,425       1,634       -12.8 %     4,319       4,698       -8.1 %
    Total Segment Operating Revenues
     16,304       17,550       -7.1 %     49,508       52,782       -6.2 %
                                                 
Segment Operating Expenses
                                                
  Operations and support
     11,097       11,456       -3.1 %     33,659       34,141       -1.4 %
  Depreciation and amortization
     3,289       3,352       -1.9 %     9,787       9,814       -0.3 %
    Total Segment Operating Expenses
     14,386       14,808       -2.8 %     43,446       43,955       -1.2 %
Segment Operating Income
     1,918       2,742       -30.1 %     6,062       8,827       -31.3 %
Equity in Net Income of Affiliates
     9       9       0.0 %     17       18       -5.6 %
Segment Income
   $ 1,927     $ 2,751       -30.0 %   $ 6,079     $ 8,845       -31.3 %
                                                 
Segment Operating Income Margin
     11.8 %     15.6 %             12.2 %     16.7 %        
                                                 
Advertising Solutions
                                                
Segment Operating Revenues
   $ 1,180     $ 1,350       -12.6 %   $ 3,680     $ 4,174       -11.8 %
                                                 
Segment Operating Expenses
                                                
  Operations and support
     721       735       -1.9 %     2,221       2,293       -3.1 %
  Depreciation and amortization
     158       194       -18.6 %     500       609       -17.9 %
    Total Segment Operating Expenses
     879       929       -5.4 %     2,721       2,902       -6.2 %
Segment Income
   $ 301     $ 421       -28.5 %   $ 959     $ 1,272       -24.6 %
                                                 
Segment Income Margin
     25.5 %     31.2 %             26.1 %     30.5 %        
                                                 
Other
                                                
Segment Operating Revenues
   $ 427     $ 501       -14.8 %   $ 1,288     $ 1,557       -17.3 %
Segment Operating Expenses
     616       425       44.9 %     1,528       1,890       -19.2 %
Segment Operating Income (Loss)
     (189 )     76       -       (240 )     (333 )     27.9 %
Equity in Net Income of Affiliates
     172       248       -30.6 %     531       689       -22.9 %
Segment Income(Loss)
   $ (17 )   $ 324       -     $ 291     $ 356       -18.3 %
 
 
 
Financial Data
            
             
AT&T Inc.
            
Consolidated Balance Sheets
            
Dollars in millions except per share amounts
            
   
9/30/09
    
12/31/08
  
   
Unaudited
        
             
Assets
            
Current Assets
            
 Cash and cash equivalents
   $ 6,167     $ 1,792  
 Accounts receivable - net of allowances for
                
     uncollectibles of $1,345 and $1,270
     14,796       16,047  
 Prepaid expenses
     1,791       1,538  
 Deferred income taxes
     991       1,014  
 Other current assets
     2,176       2,165  
  Total current assets
     25,921       22,556  
Property, Plant and Equipment - Net
     98,321       99,088  
Goodwill
     71,727       71,829  
Licenses
     47,946       47,306  
Customer Lists and Relationships - Net
     7,814       10,582  
Other Intangible Assets - Net
     5,656       5,824  
Investments in Equity Affiliates
     2,813       2,332  
Other Assets
     6,370       5,728  
   Total Assets
   $ 266,568     $ 265,245  
                 
Liabilities and Stockholders' Equity
                
Current Liabilities
                
 Debt maturing within one year
   $ 6,755     $ 14,119  
 Accounts payable and accrued liabilities
     18,093       20,032  
 Advanced billing and customer deposits
     4,036       3,849  
 Accrued taxes
     1,965       1,874  
 Dividends payable
     2,419       2,416  
  Total current liabilities
     33,268       42,290  
Long-Term Debt
     65,909       60,872  
Deferred Credits and Other Noncurrent Liabilities
                
 Deferred income taxes
     22,279       19,196  
 Postemployment benefit obligation
     31,750       31,930  
 Other noncurrent liabilities
     13,361       14,207  
  Total deferred credits and other noncurrent liabilities
     67,390       65,333  
Stockholders' Equity
                
 Common shares issued ($1 par value)
     6,495       6,495  
 Capital in excess of par value
     91,678       91,728  
 Retained earnings
     38,841       36,591  
 Treasury shares (at cost)
     (21,280 )     (21,410 )
 Accumulated other comprehensive income (loss)
     (16,161 )     (17,057 )
 Noncontrolling Interest
     428       403  
  Total stockholders' equity
     100,001       96,750  
   Total Liabilities and Stockholders' Equity
   $ 266,568     $ 265,245  
 
 
 
Financial Data
            
             
AT&T Inc.
            
Consolidated Statements of Cash Flows
            
Dollars in millions, increase (decrease) in cash and cash equivalents
        
Unaudited
  
Nine Months Ended
   
9/30/09
    
9/30/08
  
Operating Activities
            
Net income
   $ 9,752     $ 10,651  
Adjustments to reconcile net income to
                
  net cash provided by operating activities:
                
    Depreciation and amortization
     14,699       14,839  
    Provision for uncollectible accounts
     1,384       1,297  
    Deferred income tax expense
     2,574       4,063  
    Net (gain) loss from impairment on sale of investments
     89       (2 )
    Changes in operating assets and liabilities:
                
        Accounts receivable
     (133 )     (1,597 )
        Other current assets
     (288 )     616  
        Accounts payable and accrued liabilities
     (361 )     (5,958 )
        Stock-based compensation tax benefit
     -       (15 )
    Other - net
     (2,235 )     (1,121 )
Total adjustments
     15,729       12,122  
Net Cash Provided by Operating Activities
     25,481       22,773  
                 
Investing Activities
                
Construction and capital expenditures
                
  Capital expenditures
     (11,067 )     (14,388 )
  Interest during construction
     (553 )     (455 )
Acquisitions, net of cash acquired
     (184 )     (10,086 )
Dispositions
     205       1,444  
Investments in securities, net of sales
     (14 )     (103 )
Sale of other Investments
     -       436  
Other
     44       33  
Net Cash Used in Investing Activities
     (11,569 )     (23,119 )
                 
Financing Activities
                
Net change in short-term borrowings with
                
 original maturities of three months or less
     (3,918 )     5,188  
Issuance of long-term debt
     8,161       10,924  
Repayment of long-term debt
     (6,170 )     (3,143 )
Purchase of treasury shares
     -       (6,077 )
Issuance of treasury shares
     8       317  
Dividends paid
     (7,252 )     (7,150 )
Stock-based compensation tax benefit
     -       15  
Other
     (366 )     (104 )
Net Cash Used in Financing Activities
     (9,537 )     (30 )
Net increase (decrease) in cash and cash equivalents
     4,375       (376 )
Cash and cash equivalents beginning of year
     1,792       1,970  
Cash and Cash Equivalents End of Period
   $ 6,167     $ 1,594  
 
 
 
Financial Data
        
 
                
 
        
         
 
                
 
        
AT&T Inc.
                                    
Supplementary Operating and Financial Data
                                    
Dollars in millions except per share amounts
                                    
Unaudited
  
Three Months Ended
  
Nine Months Ended
   
9/30/2009
    
9/30/2008
    
% Chg
  
9/30/2009
    
9/30/2008
    
% Chg
                                     
Wireless
                                    
Wireless Customers (000)
                       81,596       74,871       9.0 %
     Net Customer Additions (000)
     2,026       1,976       2.5 %     4,617       4,604       0.3 %
     M&A Activity, Partitioned Customers and Other Adjs. (000)
     (30 )     13               (30 )     215          
Postpaid Customers (000)
                             63,434       58,735       8.0 %
     Net Postpaid Customer Additions (000)
     1,385       1,693       -18.2 %     3,413       3,292       3.7 %
     Postpaid Churn
     1.17 %     1.22 %  
-5 BP
       1.15 %     1.19 %  
-4 BP
  
Licensed POPs (000,000)
                             306       304       0.7 %
                                                 
In-Region Wireline 1
                                                
Total Consumer Revenue Connections (000)
                                                
Retail Consumer Voice Connections 2
                             25,205       28,329       -11.0 %
Retail Consumer Additional Voice Connections 2
                             2,893       3,526       -18.0 %
Consumer Wired Broadband Connections 3
                             13,550       12,729       6.4 %
Video Connections: 4
                                                
  Satellite Connections
                             2,195       2,182       0.6 %
U-verse Video Connections
                             1,816       781          
               Total Consumer Revenue Connections (000)
                             45,659       47,547       -4.0 %
                                                 
         Net Consumer Revenue Connection Changes (000)
     (630 )     (869 )     27.5 %     (1,384 )     (1,891 )     26.8 %
                                                 
Broadband and Video
                                                
Total Broadband Connections (000) 5
                             17,083       15,965       7.0 %
Net Broadband Connection Changes (000) 5
     138       334       -58.7 %     818       1,163       -29.7 %
Total Video Connections (000) 4
                             4,012       2,963       35.4 %
Net Video Connection Changes (000) 4
     225       179       25.7 %     777       616       26.1 %
                                                 
AT&T Inc.
                                                
Construction and capital expenditures
                                                
     Capital expenditures
   $ 4,031     $ 5,068       -20.5 %   $ 11,067     $ 14,388       -23.1 %
     Interest during construction
   $ 185     $ 198       -6.6 %   $ 553     $ 455       21.5 %
Dividends Declared per Share
   $ 0.4100     $ 0.4000       2.5 %   $ 1.2300     $ 1.2000       2.5 %
End of Period Common Shares Outstanding (000,000)
                             5,901       5,893       0.1 %
Debt Ratio 6,7
                             42.1 %     40.5 %  
160 BP
  
Total Employees
                             284,970       303,530       -6.1 %
                                                 
                                                 
1
   In-region wireline represents access lines served by AT&T's incumbent local exchange companies.
2
   Includes consumer U-verse Voice over IP connections.
3
   Consumer Wired Broadband Connections include DSL lines, U-verse High Speed Internet access and satellite broadband.
4
    Video connections include sales under agency agreements with EchoStar and DirecTV customers and U-verse connections.
5
   Total broadband connections include DSL lines, U-verse High Speed Internet access, satellite broadband and 3G LaptopConnect cards.
6
   Total long-term debt plus debt maturing within one year divided by total debt plus total stockholders' equity.
7
   Prior year amounts restated to conform to current period reporting methodology.
 Note: For the end of 3Q09, total switched access lines were 50,833, retail business switched access lines totaled 20,534, and wholesale and coin switched access lines totaled 2,936.
 
 
 
Financial Data
          
           
AT&T Inc.
          
Non-GAAP Financial Reconciliations
          
Free Cash Flow
          
AT&T Inc.
          
Dollars in Millions
          
Unaudited
          
September 30, 2009
    
Three Months Ended
Nine Months Ended
           
Net cash provided by operating activities
   $
9,679
  
 $                 25,481
           
Less: Construction and capital expenditures
    
                     (4,216)
  
                   (11,620)
           
Free Cash Flow
   $
5,463
  
 $                 13,861
 
Free cash flow is defined as cash from operations minus capital expenditures. We believe these metrics provide useful information to our investors because management regularly reviews free cash flow as an important indicator of how much cash is generated by normal business operations, including capital expenditures, and makes decisions based on it. Management also views free cash flow as a measure of cash available to pay debt and return cash to shareowners.
 
 
 
Financial Data
                              
                               
AT&T Inc.
                              
Non-GAAP Wireless Reconciliation
                              
Wireless Segment OIBDA
                              
AT&T Inc.
                              
Dollars in Millions
                              
Unaudited
                              
   
Three Months Ended
   
9/30/2008
    
12/31/2008
    
3/31/2009
    
6/30/2009
    
9/30/2009
  
                               
Service Revenues
   $ 11,273     $ 11,541     $ 11,668     $ 11,983     $ 12,399  
Equipment Revenues
     1,345       1,318       1,192       1,262       1,255  
   Total Operating Revenues
     12,618       12,859       12,860       13,245       13,654  
                                         
Operating Expenses
                                        
Operations and support
     8,838       8,731       8,085       8,658       8,877  
Depreciation and amortization
     1,401       1,443       1,434       1,436       1,418  
   Total Operating Expenses
     10,239       10,174       9,519       10,094       10,295  
                                         
Operating Income
     2,379       2,685       3,341       3,151       3,359  
                                         
Plus: Depreciation and amortization
     1,401       1,443       1,434       1,436       1,418  
OIBDA
     3,780       4,128       4,775       4,587       4,777  
OIBDA as a % of Service Revenue
     33.5 %     35.8 %     40.9 %     38.3 %     38.5 %
                                         
OIBDA is defined as operating income (loss) before depreciation and amortization. OIBDA differs from segment operating income (loss), as calculated in accordance with generally accepted accounting principles (GAAP), in that it excludes depreciation and amortization. OIBDA does not give effect to cash used for debt service requirements and thus does not reflect available funds for distributions, reinvestment or other discretionary uses. OIBDA is not presented as an alternative measure of operating results or cash flows from operations, as determined in accordance with GAAP. Our calculation of OIBDA, as presented, may differ from similarly titled measures reported by other companies.