EX-99.1 2 ex99_1.htm AT&T INC. SELECTED FINANCIAL STATEMENTS AND OPERATING DATA ex99_1.htm
Financial Data
              
 
  
                   
AT&T Inc.
                  
Consolidated Statements of Income
                  
Dollars in millions except per share amounts
                  
Unaudited
  
Three Months Ended
   
3/31/2010
  
3/31/2009
  
% Chg
Operating Revenues
                  
  Wireless service
   $ 12,850     $ 11,646       10.3 %
  Voice
     7,479       8,503       -12.0 %
  Data
     6,631       6,281       5.6 %
  Directory
     1,041       1,249       -16.7 %
  Other
     2,648       2,892       -8.4 %
    Total Operating Revenues
     30,649       30,571       0.3 %
                         
Operating Expenses
                        
  Cost of services and sales (exclusive of
                        
     depreciation and amortization shown separately below)
     12,329       12,195       1.1 %
  Selling, general and administrative
     7,484       7,753       -3.5 %
  Depreciation and amortization
     4,826       4,886       -1.2 %
    Total Operating Expenses
     24,639       24,834       -0.8 %
Operating Income
     6,010       5,737       4.8 %
Interest Expense
     767       849       -9.7 %
Equity in Net Income of Affiliates
     217       137       58.4 %
Other Income (Expense) - Net
     (22 )     (15 )     -46.7 %
Income Before Income Taxes
     5,438       5,010       8.5 %
Income Taxes
     2,876       1,809       59.0 %
Net Income
     2,562       3,201       -20.0 %
  Less: Net Income Attributable to Noncontrolling Interest
     (87 )     (75 )     -16.0 %
Net Income Attributable to AT&T
   $ 2,475     $ 3,126       -20.8 %
                         
                         
Basic Earnings Per Share Attributable to AT&T
   $ 0.42     $ 0.53       -20.8 %
Weighted Average Common
                        
  Shares Outstanding (000,000)
     5,905       5,896       0.2 %
                         
Diluted Earnings Per Share Attributable to AT&T
   $ 0.42     $ 0.53       -20.8 %
Weighted Average Common
                        
  Shares Outstanding with Dilution (000,000)
     5,935       5,922       0.2 %
                         
 
 
 
 
 
 
 
 
Financial Data
                  
                   
AT&T Inc.
                  
Statements of Segment Income
                  
Dollars in millions
                  
Unaudited
                  
   
Three Months Ended
                   
Wireless
  
3/31/2010
  
3/31/2009
  
% Chg
Segment Operating Revenues
                  
  Service
   $ 12,850     $ 11,646       10.3 %
  Equipment
     1,047       1,192       -12.2 %
    Total Segment Operating Revenues
     13,897       12,838       8.2 %
                         
Segment Operating Expenses
                        
  Operations and support
     8,183       7,886       3.8 %
  Depreciation and amortization
     1,558       1,499       3.9 %
    Total Segment Operating Expenses
     9,741       9,385       3.8 %
Segment Operating Income
     4,156       3,453       20.4 %
Equity in Net Income of Affiliates
     13       -       -  
Segment Income
   $ 4,169     $ 3,453       20.7 %
                         
Segment Operating Income Margin
     29.9 %     26.9 %        
                         
                         
Wireline
                        
Segment Operating Revenues
                        
  Voice
   $ 7,479     $ 8,503       -12.0 %
  Data
     6,631       6,281       5.6 %
  Other
     1,311       1,377       -4.8 %
    Total Segment Operating Revenues
     15,421       16,161       -4.6 %
                         
Segment Operating Expenses
                        
  Operations and support
     10,612       10,928       -2.9 %
  Depreciation and amortization
     3,099       3,176       -2.4 %
    Total Segment Operating Expenses
     13,711       14,104       -2.8 %
Segment Operating Income
     1,710       2,057       -16.9 %
Equity in Net Income of Affiliates
     5       3       66.7 %
Segment Income
   $ 1,715     $ 2,060       -16.7 %
                         
Segment Operating Income Margin
     11.1 %     12.7 %        
                         
Advertising Solutions
                        
Segment Operating Revenues
   $ 1,041     $ 1,249       -16.7 %
                         
Segment Operating Expenses
                        
  Operations and support
     675       721       -6.4 %
  Depreciation and amortization
     138       176       -21.6 %
    Total Segment Operating Expenses
     813       897       -9.4 %
Segment Income
   $ 228     $ 352       -35.2 %
                         
Segment Income Margin
     21.9 %     28.2 %        
                         
Other
                        
Segment Operating Revenues
   $ 290     $ 323       -10.2 %
Segment Operating Expenses
     374       448       -16.5 %
Segment Operating Income (Loss)
     (84 )     (125 )     32.8 %
Equity in Net Income of Affiliates
     199       134       48.5 %
Segment Income
   $ 115     $ 9       -  
                         
Segment Income Margin
     39.7 %     2.8 %        
 
 
 
 
 
 
Financial Data
            
             
AT&T Inc.
            
Consolidated Balance Sheets
            
Dollars in millions except per share amounts
            
   
3/31/10
    
12/31/09
  
   
Unaudited
        
             
Assets
            
Current Assets
            
 Cash and cash equivalents
   $ 2,617     $ 3,802  
 Accounts receivable - net of allowances for
                
     doubtful accounts of $1,125 and $1,205
     14,167       14,978  
 Prepaid expenses
     1,820       1,572  
 Deferred income taxes
     1,293       1,274  
 Other current assets
     2,465       2,708  
  Total current assets
     22,362       24,334  
Property, Plant and Equipment - Net
     99,360       100,093  
Goodwill
     73,052       73,259  
Licenses
     49,028       48,759  
Customer Lists and Relationships - Net
     6,624       7,420  
Other Intangible Assets - Net
     5,680       5,644  
Investments in Equity Affiliates
     3,278       2,921  
Other Assets
     6,317       6,322  
   Total Assets
   $ 265,701     $ 268,752  
                 
Liabilities and Stockholders' Equity
                
Current Liabilities
                
 Debt maturing within one year
   $ 9,437     $ 7,361  
 Accounts payable and accrued liabilities
     18,087       20,999  
 Advanced billing and customer deposits
     4,061       4,170  
 Accrued taxes
     2,639       1,696  
 Dividends payable
     2,482       2,479  
  Total current liabilities
     36,706       36,705  
Long-Term Debt
     60,024       64,720  
Deferred Credits and Other Noncurrent Liabilities
                
 Deferred income taxes
     25,520       23,803  
 Postemployment benefit obligation
     27,709       27,849  
 Other noncurrent liabilities
     13,276       13,350  
  Total deferred credits and other noncurrent liabilities
     66,505       65,002  
Stockholders' Equity
                
 Common stock ($1 par value)
     6,495       6,495  
 Additional paid-in-capital
     91,557       91,707  
 Retained earnings
     39,373       39,366  
 Treasury stock (at cost)
     (21,137 )     (21,260 )
 Accumulated other comprehensive loss
     (14,265 )     (14,408 )
 Noncontrolling interest
     443       425  
  Total stockholders' equity
     102,466       102,325  
   Total Liabilities and Stockholders' Equity
   $ 265,701     $ 268,752  
 
 
 
 
 
 
Financial Data
            
             
AT&T Inc.
            
Consolidated Statements of Cash Flows
            
Dollars in millions, increase (decrease) in cash and cash equivalents
        
Unaudited
  
Three months ended
   
March 31,
   
2010
  
2009
Operating Activities
            
Net income
   $ 2,562     $ 3,201  
Adjustments to reconcile net income to
                
  net cash provided by operating activities:
                
    Depreciation and amortization
     4,826       4,886  
    Undistributed earnings from investments in equity affiliates
     (201 )     (124 )
    Bad debt expense
     350       509  
    Deferred income tax expense
     1,612       126  
    Net loss from impairment and sale of investments
     50       82  
    Changes in operating assets and liabilities:
                
        Accounts receivable
     461       573  
        Other current assets
     88       (51 )
        Accounts payable and accrued liabilities
     (2,084 )     (1,931 )
   Net income attributable to noncontrolling interest
     (87 )     (75 )
   Other - net
     (324 )     719  
Total adjustments
     4,691       4,714  
Net Cash Provided by Operating Activities
     7,253       7,915  
                 
Investing Activities
                
Construction and capital expenditures
                
  Capital expenditures
     (3,156 )     (3,173 )
  Interest during construction
     (184 )     (185 )
Acquisitions, net of cash acquired
     (178 )     -  
Dispositions
     1       181  
Sales of securities net of investments
     (20 )     15  
Other
     8       5  
Net Cash Used in Investing Activities
     (3,529 )     (3,157 )
                 
Financing Activities
                
Net change in short-term borrowings with
                
 original maturities of three months or less
     323       (3,909 )
Issuance of long-term debt
     -       5,450  
Repayment of long-term debt
     (2,512 )     (1,261 )
Issuance of treasury stock
     3       1  
Dividends paid
     (2,479 )     (2,416 )
Other
     (244 )     (603 )
Net Cash Used in Financing Activities
     (4,909 )     (2,738 )
Net increase (decrease) in cash and cash equivalents
     (1,185 )     2,020  
Cash and cash equivalents beginning of year
     3,802       1,792  
Cash and Cash Equivalents End of Period
   $ 2,617     $ 3,812  
 
 
 
 
 
 
Financial Data
        
 
        
         
 
        
AT&T Inc.
                  
Supplementary Operating and Financial Data
                  
Dollars in millions except per share amounts
                  
Unaudited
  
Three Months Ended
   
3/31/2010
  
3/31/2009
  
% Chg
                   
Wireless
                  
Wireless Customers (000)
     86,987       78,232       11.2 %
     Net Customer Additions (000)
     1,857       1,223       51.8 %
     M&A Activity, Partitioned Customers and Other Adjs. (000)
     10       -          
Total Churn7
     1.30 %     1.56 %  
-26 BP
Postpaid Customers (000)7
     65,108       60,535       7.6 %
     Net Postpaid Customer Additions (000)7
     512       897       -42.9 %
     Postpaid Churn7
     1.07 %     1.15 %  
-8 BP
Licensed POPs (000,000)
     307       306       0.3 %
                         
In-Region Wireline 1
                        
Total Consumer Revenue Connections (000)
                        
Retail Consumer Voice Connections 2
     26,633       29,969       -11.1 %
Consumer Wired Broadband Connections 3
     13,989       13,344       4.8 %
Video Connections: 4
                        
Satellite Connections
     2,127       2,205       -3.5 %
U-verse Video Connections
     2,295       1,329       72.7 %
               Total Consumer Revenue Connections (000)
     45,044       46,847       -3.8 %
                         
Net Consumer Revenue Connection Changes (000)
     (243 )     (196 )     -24.0 %
                         
Broadband and Video
                        
Total Broadband Connections (000) 5
     17,532       16,736       4.8 %
Net Broadband Connection Changes (000) 5
     278       471       -41.0 %
Total Video Connections (000) 4
     4,423       3,534       25.2 %
Net Video Connection Changes (000) 4
     184       299       -38.5 %
                         
AT&T Inc.
                        
Construction and capital expenditures
                        
Capital expenditures
   $ 3,156     $ 3,173       -0.5 %
Interest during construction
   $ 184     $ 185       -0.5 %
Dividends Declared per Share
   $ 0.4200     $ 0.4100       2.4 %
End of Period Common Shares Outstanding (000,000)
     5,909       5,900       0.2 %
Debt Ratio 6
     40.4 %     43.2 %  
-280 BP
Total Employees
     276,280       294,600       -6.2 %
                         
                         
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 1Q10, total switched access lines were 48,083, retail business switched access lines totaled 19,854, and wholesale and coin switched access lines totaled 2,741.