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
  
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.