0000732717-15-000107.txt : 20151015 0000732717-15-000107.hdr.sgml : 20151015 20151014182548 ACCESSION NUMBER: 0000732717-15-000107 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20151014 ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20151015 DATE AS OF CHANGE: 20151014 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AT&T INC. CENTRAL INDEX KEY: 0000732717 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813] IRS NUMBER: 431301883 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-08610 FILM NUMBER: 151158905 BUSINESS ADDRESS: STREET 1: 208 S. AKARD ST STREET 2: ATTN : JAMES LACY CITY: DALLAS STATE: TX ZIP: 75202 BUSINESS PHONE: 2108214105 MAIL ADDRESS: STREET 1: 208 S. AKARD ST STREET 2: ATTN : JAMES LACY CITY: DALLAS STATE: TX ZIP: 75202 FORMER COMPANY: FORMER CONFORMED NAME: SBC COMMUNICATIONS INC DATE OF NAME CHANGE: 19950501 FORMER COMPANY: FORMER CONFORMED NAME: SOUTHWESTERN BELL CORP DATE OF NAME CHANGE: 19920703 8-K 1 segments.htm



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549
 

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934


Date of report (Date of earliest event reported) October 14, 2015

AT&T INC.
(Exact Name of Registrant as Specified in Charter)


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)

Registrant's telephone number, including area code (210) 821-4105


__________________________________
(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 ☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 ☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 ☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240-14d-2(b))
 ☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 8.01 Other Events.
 
Throughout this document, AT&T Inc. is referred to as "we" or "AT&T." Due to recent organizational changes and our July 24, 2015 acquisition of DIRECTV, effective for the quarter ended September 30, 2015, we are revising our operating segments to align with the new management structure and organizational responsibilities. Our new reportable segments are:

·
The Business Solutions segment provides both wireless and wireline services to business customers and individual subscribers who purchase wireless services through employer-sponsored plans. Services utilize our wireless and wired network to provide a complete communications solution to our business customers.

·
The Entertainment and Internet Services segment provides entertainment, Internet and communications services predominantly to residential customers in the U.S. Services include video entertainment, high-speed Internet and voice services.

·
The Consumer Mobility segment provides nationwide wireless service to consumer, wholesale and resale subscribers located in the U.S. or in U.S. territories. Services utilize our U.S. wireless network to provide voice and data services, including high speed Internet, video entertainment and home monitoring services.

·
The International segment represents our recently acquired entertainment and wireless businesses in Latin America and Mexico. Video entertainment services are provided primarily to residential customers using satellite technology. Wireless services utilize our regional and national wireless networks in Mexico to provide consumer and business customers with wireless data and voice communication services. Our international subsidiaries transact in their local currency and those operating results are converted to U.S. dollars using official exchange rates. The third-quarter 2015 results from our Venezuelan subsidiary will be converted using the Sistema Marginal de Divisas (SIMADI) exchange mechanism, which was 199.65 Venezuelan bolivars per U.S. dollar at July 24, 2015. Our International segment is subject to foreign currency fluctuations.

In reconciling items to consolidated operating income, Corporate and Other will include: (1) operations that are not considered reportable segments and that are no longer integral to our operations or which we no longer actively market, including the Connecticut operations that were sold in 2014, and (2) impacts of corporate-wide decisions for which the individual operating segments are not being evaluated, including interest costs and expected return on plan assets for our pension and postretirement benefit plans.

Certain other operating expenses excluded from segments results will be separately identified as reconciling items to consolidated operating income:
·
Acquisition-related items include (1) operating items associated with the merger and integration of newly acquired businesses, and (2) the noncash amortization of intangible assets acquired in acquisitions.
·
Certain significant items include (1) noncash actuarial gains and losses from pension and other postretirement benefits, (2) employee separation charges associated with voluntary and/or strategic offers (3) abandonment or impairments of assets and (4) other items for which the segments are not being evaluated.

Interest expense and other income (expense) – net, are managed only on a total company basis and are, accordingly, reflected only in consolidated results. Therefore, these items are not included in each segment's reportable results.

Our operating assets are shared by multiple segments and consist of our wireless, wired and global satellite networks. We manage our assets on a total company basis, not by operating segment, and therefore asset information and capital expenditures by operating segment are not presented.
 

This change in segment presentation does not affect AT&T's consolidated statements of income, balance sheets or statements of cash flows.

As a convenience to investors who may want to consider the effects of the above in advance of third quarter earnings, AT&T today is making available the recasting of the historical segment results for the quarters and year ended 2013 and 2014 and for the quarters ended March 31, and June 30, 2015, which is provided as Exhibit 99.1 and 99.2 hereto.

AT&T's third-quarter 2015 results will include the results of the DIRECTV operations, which were acquired on July 24, 2015. DIRECTV's U.S. operations are included in our Entertainment and Internet Services segment. DIRECTV's Latin America operations and our recently acquired Mexican wireless operations are now included in our International segment. Our third-quarter 2015 results will show that, in terms of revenue, Business Solutions is our largest segment, Entertainment and Internet Services is second, Consumer Mobility is third and International is the smallest segment.

Item 9.01 Financial Statements and Exhibits.
 
The following exhibits are filed as part of this report:
 
(d)          Exhibits

  99.1
 
Restated quarterly segment results
  99.2
 
Reconciliation of Segment Contribution to consolidated Operating Income and consolidated Income Before Income Taxes
  99.3
  
Restated supplemental AT&T Mobility results
  
  
 

 






Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
AT&T INC.
   
   
   
Date: October 14, 2015
By: /s/ Paul W. Stephens
 Paul W. Stephens
 Senior Vice President and Controller

  
   


EX-99.1 2 ex99_1.htm RESTATED QUARTERLY SEGMENT RESULTS
Financial Data 
                                         
AT&T Inc.             
Segment Results for the Three Months Ended
Dollars in millions
Unaudited
                                        
                                         
Business Solutions
  
3/31/2013
    
6/30/2013
    
9/30/2013
    
12/31/2013
    
3/31/2014
    
6/30/2014
    
9/30/2014
    
12/31/2014
    
3/31/2015
    
6/30/2015
  
Segment Operating Revenues
                                        
  Wireless
  
$
7,787
    
$
8,235
    
$
8,543
    
$
9,091
    
$
9,026
    
$
8,732
    
$
9,128
    
$
10,337
    
$
9,408
    
$
9,549
  
  Wireline
    
8,531
      
8,530
      
8,465
      
8,465
      
8,318
      
8,314
      
8,359
      
8,392
      
8,149
      
8,115
  
    Total Segment Operating Revenues
    
16,318
      
16,765
      
17,008
      
17,556
      
17,344
      
17,046
      
17,487
      
18,729
      
17,557
      
17,664
  
                                                                                 
Segment Operating Expenses
                                                                                
Operations and Support Expenses
    
10,254
      
10,770
      
10,781
      
11,637
      
10,714
      
10,827
      
11,295
      
12,990
      
11,073
      
10,972
  
Depreciation and amortization
    
2,170
      
2,218
      
2,261
      
2,316
      
2,364
      
2,314
      
2,331
      
2,346
      
2,342
      
2,460
  
    Total Segment Operating Expenses
    
12,424
      
12,988
      
13,042
      
13,953
      
13,078
      
13,141
      
13,626
      
15,336
      
13,415
      
13,432
  
Segment Operating Income
    
3,894
      
3,777
      
3,966
      
3,603
      
4,266
      
3,905
      
3,861
      
3,393
      
4,142
      
4,232
  
Equity in Net Income (Loss) of Affiliates
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Segment Income
  
$
3,894
    
$
3,777
    
$
3,966
    
$
3,603
    
$
4,266
    
$
3,905
    
$
3,861
    
$
3,393
    
$
4,142
    
$
4,232
  
                                                                                 
Segment Operating Income Margin
    
23.9
%
    
22.5
%
    
23.3
%
    
20.5
%
    
24.6
%
    
22.9
%
    
22.1
%
    
18.1
%
    
23.6
%
    
24.0
%
                                                                                 
                                                                                 
Entertainment and Internet Services                                        
Segment Operating Revenues
  
$
5,300
    
$
5,398
    
$
5,389
    
$
5,455
    
$
5,525
    
$
5,562
    
$
5,553
    
$
5,593
    
$
5,660
    
$
5,782
  
                                                                                 
Segment Operating Expenses
                                                                                
Operations and Support Expenses
    
4,425
      
4,419
      
4,526
      
4,573
      
4,654
      
4,747
      
4,781
      
4,810
      
4,859
      
4,913
  
Depreciation and amortization
    
1,196
      
1,202
      
1,206
      
1,211
      
1,188
      
1,099
      
1,109
      
1,077
      
1,065
      
1,065
  
    Total Segment Operating Expenses
    
5,621
      
5,621
      
5,732
      
5,784
      
5,842
      
5,846
      
5,890
      
5,887
      
5,924
      
5,978
  
Segment Operating Income
    
(321
)
    
(223
)
    
(343
)
    
(329
)
    
(317
)
    
(284
)
    
(337
)
    
(294
)
    
(264
)
    
(196
)
Equity in Net Income (Loss) of Affiliates
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
(2
)
    
(6
)
    
(12
)
Segment Income
  
$
(321
)
  
$
(223
)
  
$
(343
)
  
$
(329
)
  
$
(317
)
  
$
(284
)
  
$
(337
)
  
$
(296
)
  
$
(270
)
  
$
(208
)
                                                                                 
Segment Operating Income Margin
    
-6.1
%
    
-4.1
%
    
-6.4
%
    
-6.0
%
    
-5.7
%
    
-5.1
%
    
-6.1
%
    
-5.3
%
    
-4.7
%
    
-3.4
%
                                                                                 
                                                                                 
Consumer Mobility
                                                                                
Segment Operating Revenues
  
$
8,904
    
$
9,056
    
$
8,937
    
$
9,346
    
$
8,840
    
$
9,199
    
$
9,208
    
$
9,522
    
$
8,778
    
$
8,755
  
                                                                                 
Segment Operating Expenses
                                                                                
Operations and Support Expenses
    
5,276
      
5,437
      
5,502
      
6,330
      
5,436
      
6,006
      
5,731
      
6,718
      
5,541
      
5,202
  
Depreciation and amortization
    
890
      
905
      
929
      
959
      
915
      
981
      
950
      
981
      
1,002
      
934
  
    Total Segment Operating Expenses
    
6,166
      
6,342
      
6,431
      
7,289
      
6,351
      
6,987
      
6,681
      
7,699
      
6,543
      
6,136
  
Segment Operating Income
    
2,738
      
2,714
      
2,506
      
2,057
      
2,489
      
2,212
      
2,527
      
1,823
      
2,235
      
2,619
  
Equity in Net Income (Loss) of Affiliates
    
-
      
-
      
-
      
-
      
-
      
-
      
(1
)
    
-
      
-
      
-
  
Segment Income
  
$
2,738
    
$
2,714
    
$
2,506
    
$
2,057
    
$
2,489
    
$
2,212
    
$
2,526
    
$
1,823
    
$
2,235
    
$
2,619
  
                                                                                 
Segment Operating Income Margin
    
30.8
%
    
30.0
%
    
28.0
%
    
22.0
%
    
28.2
%
    
24.0
%
    
27.4
%
    
19.1
%
    
25.5
%
    
29.9
%
                                                                                 
                                                                                 
International
                                                                                
Segment Operating Revenues
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
236
    
$
491
  
                                                                                 
Segment Operating Expenses
                                                                                
Operations and Support Expenses
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
218
      
529
  
Depreciation and amortization
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
28
      
93
  
    Total Segment Operating Expenses
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
246
      
622
  
Segment Operating Income
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
(10
)
    
(131
)
Equity in Net Income (Loss) of Affiliates
    
151
      
174
      
85
      
122
      
54
      
99
      
-
      
-
      
-
      
-
  
Segment Income
  
$
151
    
$
174
    
$
85
    
$
122
    
$
54
    
$
99
    
$
-
    
$
-
    
$
(10
)
  
$
(131
)
                                                                                 
Segment Operating Income Margin
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-4.2
%
    
-26.7
%
EX-99.2 3 ex99_2.htm RECONCILIATION OF SEGMENT CONTRIBUTION TO CONSOLIDATED OPERATING INCOME AND CONSOLIDATED INCOME BEFORE INCOME TAXES
Financial Data
                         
AT&T Inc.
Reconciliation of Segment Contribution to consolidated Operating Income and consolidated Income Before Income Taxes
Dollars in millions
Unaudited
                        
                         
For the six months ended June 30, 2015
   
Revenues
    
Operations & Support Expense
    
Depreciation & Amortization
    
Operating Income (Loss)
    
Equity in Net Income of Affiliates
    
Segment Contribution
  
Business Solutions
  
$
35,221
    
$
22,045
    
$
4,802
    
$
8,374
    
$
-
    
$
8,374
  
Entertainment and Internet Services
    
11,442
      
9,772
      
2,130
      
(460
)
    
(18
)
    
(478
)
Consumer Mobility
    
17,533
      
10,743
      
1,936
      
4,854
      
-
      
4,854
  
International
    
727
      
747
      
121
      
(141
)
    
-
      
(141
)
Segment Total
  
$
64,923
    
$
43,307
    
$
8,989
    
$
12,627
    
$
(18
)
  
$
12,609
  
Corporate & Other
  
$
668
    
$
470
    
$
44
    
$
154
                  
Acquisition-related items
    
-
      
993
      
241
      
(1,234
)
                
Certain significant items
    
-
      
217
      
-
      
(217
)
                
AT&T Inc.
  
$
65,591
    
$
44,987
    
$
9,274
    
$
11,330
                  
                                                 
                                                 
For the year ended December 31, 2014
                                                
   
Revenues
    
Operations & Support Expense
    
Depreciation & Amortization
    
Operating Income (Loss)
    
Equity in Net Income of Affiliates
    
Segment Contribution
  
Business Solutions
  
$
70,606
    
$
45,826
    
$
9,355
    
$
15,425
    
$
-
    
$
15,425
  
Entertainment and Internet Services
    
22,233
      
18,992
      
4,473
      
(1,232
)
    
(2
)
    
(1,234
)
Consumer Mobility
    
36,769
      
23,891
      
3,827
      
9,051
      
(1
)
    
9,050
  
International
    
-
      
-
      
-
      
-
      
153
      
153
  
Segment Total
  
$
129,608
    
$
88,709
    
$
17,655
    
$
23,244
    
$
150
    
$
23,394
  
Corporate & Other
  
$
2,839
    
$
2,471
    
$
105
    
$
263
                  
Acquisition-related items
    
-
      
785
      
487
      
(1,272
)
                
Certain significant items
    
-
      
9,997
      
26
      
(10,023
)
                
AT&T Inc.
  
$
132,447
    
$
101,962
    
$
18,273
    
$
12,212
                  
                                                 
                                                 
For the year ended December 31, 2013
                                                
   
Revenues
    
Operations & Support Expense
    
Depreciation & Amortization
    
Operating Income (Loss)
    
Equity in Net Income of Affiliates
    
Segment Contribution
  
Business Solutions
  
$
67,647
    
$
43,442
    
$
8,965
    
$
15,240
    
$
-
    
$
15,240
  
Entertainment and Internet Services
    
21,542
      
17,943
      
4,815
      
(1,216
)
    
-
      
(1,216
)
Consumer Mobility
    
36,243
      
22,545
      
3,683
      
10,015
      
-
      
10,015
  
International
    
-
      
-
      
-
      
-
      
532
      
532
  
Segment Total
  
$
125,432
    
$
83,930
    
$
17,463
    
$
24,039
    
$
532
    
$
24,571
  
Corporate & Other
  
$
3,320
    
$
2,987
    
$
274
    
$
59
                  
Acquisition-related items
    
-
      
-
      
658
      
(658
)
                
Certain significant items
    
-
      
(7,312
)
    
-
      
7,312
                  
AT&T Inc.
  
$
128,752
    
$
79,605
    
$
18,395
    
$
30,752
                  
                                                 
                                                 
Reconciliation to consolidated Income Before Income Taxes
                                                
   
Six Months Ended
June 30, 2015
    
Year Ended
December 31, 2014
    
Year Ended
December 31, 2013
                          
Business Solutions
  
$
8,374
    
$
15,425
    
$
15,240
                          
Entertainment & Internet Services
    
(478
)
    
(1,234
)
    
(1,216
)
                        
Consumer Mobility
    
4,854
      
9,050
      
10,015
                          
International
    
(141
)
    
153
      
532
                          
Segment Contribution
    
12,609
      
23,394
      
24,571
                          
Reconciling Items:
                                                
   Corporate and Other
    
154
      
263
      
59
                          
   Merger and integrations charges
    
(993
)
    
(785
)
    
-
                          
   Amortization of intangibles acquired
    
(241
)
    
(487
)
    
(658
)
                        
   Actuarial gain (loss)
    
-
      
(7,869
)
    
7,584
                          
   Employee separation charges
    
(217
)
    
-
      
(501
)
                        
   Other (expenses) credits
    
-
      
-
      
229
                          
   Asset abandonments and
   impairments
    
-
      
(2,154
)
    
-
                          
Less: segment equity in net income of affiliates
    
18
      
(150
)
    
(532
)
                        
Operating Income
    
11,330
      
12,212
      
30,752
                          
Interest expense
    
1,831
      
3,613
      
3,940
                          
Equity in net income of affiliates
    
33
      
175
      
642
                          
Other income (expense) – net
    
118
      
1,581
      
596
                          
Income Before Income Taxes
  
$
9,650
    
$
10,355
    
$
28,050
                          
EX-99.3 4 ex99_3.htm RESTATED SUPPLEMENTAL AT&T MOBILITY RESULTS
Financial Data
                                         
AT&T Inc.    
Supplemental Operating Results for the Three Months Ended                 
Dollars in millions
Unaudited
                                         
AT&T Mobility
  
3/31/2013
    
6/30/2013
    
9/30/2013
    
12/31/2013
    
3/31/2014
    
6/30/2014
    
9/30/2014
    
12/31/2014
    
3/31/2015
    
6/30/2015
  
Operating Revenues
                                        
  Service
  
$
15,063
    
$
15,369
    
$
15,460
    
$
15,660
    
$
15,387
    
$
15,148
    
$
15,423
    
$
15,074
    
$
14,812
    
$
15,115
  
  Equipment
    
1,628
      
1,922
      
2,020
      
2,777
      
2,479
      
2,782
      
2,914
      
4,785
      
3,374
      
3,189
  
    Total  Operating Revenues
    
16,691
      
17,291
      
17,480
      
18,437
      
17,866
      
17,930
      
18,337
      
19,859
      
18,186
      
18,304
  
                                                                                 
Operating Expenses
                                                                                
Operations and Support Expenses
    
10,181
      
10,769
      
10,981
      
12,577
      
10,865
      
11,473
      
11,683
      
14,327
      
11,472
      
10,973
  
Depreciation and amortization
    
1,756
      
1,781
      
1,828
      
1,884
      
1,903
      
1,973
      
1,909
      
1,959
      
2,005
      
2,031
  
    Total Operating Expenses
    
11,937
      
12,550
      
12,809
      
14,461
      
12,768
      
13,446
      
13,592
      
16,286
      
13,477
      
13,004
  
Operating Income
  
$
4,754
    
$
4,741
    
$
4,671
    
$
3,976
    
$
5,098
    
$
4,484
    
$
4,745
    
$
3,573
    
$
4,709
    
$
5,300
  
                                                                                 
Operating Income Margin
    
28.5
%
    
27.4
%
    
26.7
%
    
21.6
%
    
28.5
%
    
25.0
%
    
25.9
%
    
18.0
%
    
25.9
%
    
29.0
%