Delaware
|
1-8610
|
43-1301883
|
(State or Other Jurisdiction of Incorporation)
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
208 S. Akard St., Dallas, Texas
|
75202
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
AT&T INC.
|
|
Date: July 23, 2015
|
By: /s/ Paul W. Stephens
Paul W. Stephens
Senior Vice President and Controller
|
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.
|