Financial Data | ||||||||||||
AT&T Inc. | ||||||||||||
Consolidated Statements of Income | ||||||||||||
Dollars in millions except per share amounts | ||||||||||||
Unaudited | Three Months Ended | |||||||||||
3/31/2011 | 3/31/2010 | % Chg | ||||||||||
Operating Revenues | ||||||||||||
Wireless service | $ | 13,961 | $ | 12,850 | 8.6 | % | ||||||
Data | 7,180 | 6,651 | 8.0 | % | ||||||||
Voice | 6,551 | 7,483 | -12.5 | % | ||||||||
Directory | 868 | 1,041 | -16.6 | % | ||||||||
Other | 2,687 | 2,505 | 7.3 | % | ||||||||
Total Operating Revenues | 31,247 | 30,530 | 2.3 | % | ||||||||
Operating Expenses | ||||||||||||
Cost of services and sales (exclusive of depreciation and | ||||||||||||
amortization shown separately below) | 13,403 | 12,383 | 8.2 | % | ||||||||
Selling, general and administrative | 7,452 | 7,396 | 0.8 | % | ||||||||
Depreciation and amortization | 4,584 | 4,780 | -4.1 | % | ||||||||
Total Operating Expenses | 25,439 | 24,559 | 3.6 | % | ||||||||
Operating Income | 5,808 | 5,971 | -2.7 | % | ||||||||
Interest Expense | 846 | 765 | 10.6 | % | ||||||||
Equity in Net Income of Affiliates | 249 | 217 | 14.7 | % | ||||||||
Other Income (Expense) - Net | 59 | (22 | ) | - | ||||||||
Income from Continuing Operations Before Income Taxes | 5,270 | 5,401 | -2.4 | % | ||||||||
Income Tax Expense | 1,802 | 2,863 | -37.1 | % | ||||||||
Income from Continuing Operations | 3,468 | 2,538 | 36.6 | % | ||||||||
Income from Discontinued Operations, net of tax | - | 2 | - | |||||||||
Net Income | 3,468 | 2,540 | 36.5 | % | ||||||||
Less: Net Income Attributable to Noncontrolling Interest | (60 | ) | (87 | ) | 31.0 | % | ||||||
Net Income Attributable to AT&T | $ | 3,408 | $ | 2,453 | 38.9 | % | ||||||
Basic Earnings Per Share from Continuing | ||||||||||||
Operations Attributable to AT&T | $ | 0.57 | $ | 0.42 | 35.7 | % | ||||||
Basic Earnings Per Share from Discontinued | ||||||||||||
Operations Attributable to AT&T | - | - | - | |||||||||
Basic Earnings Per Share Attributable to AT&T | $ | 0.57 | $ | 0.42 | 35.7 | % | ||||||
Weighted Average Common | ||||||||||||
Shares Outstanding (000,000) | 5,925 | 5,905 | 0.3 | % | ||||||||
Diluted Earnings Per Share from Continuing | ||||||||||||
Operations Attributable to AT&T | $ | 0.57 | $ | 0.41 | 39.0 | % | ||||||
Diluted Earnings Per Share from Discontinued | ||||||||||||
Operations Attributable to AT&T | - | - | - | |||||||||
Diluted Earnings Per Share Attributable to AT&T | $ | 0.57 | $ | 0.41 | 39.0 | % | ||||||
Weighted Average Common | ||||||||||||
Shares Outstanding with Dilution (000,000) | 5,945 | 5,935 | 0.2 | % | ||||||||
Financial Data | ||||||||||||
AT&T Inc. | ||||||||||||
Statements of Segment Income | ||||||||||||
Dollars in millions | ||||||||||||
Unaudited | ||||||||||||
Three Months Ended | ||||||||||||
Wireless | 3/31/2011 | 3/31/2010 | % Chg | |||||||||
Segment Operating Revenues | ||||||||||||
Service | $ | 13,961 | $ | 12,850 | 8.6 | % | ||||||
Equipment | 1,348 | 1,047 | 28.7 | % | ||||||||
Total Segment Operating Revenues | 15,309 | 13,897 | 10.2 | % | ||||||||
Segment Operating Expenses | ||||||||||||
Operations and support | 9,858 | 8,173 | 20.6 | % | ||||||||
Depreciation and amortization | 1,505 | 1,558 | -3.4 | % | ||||||||
Total Segment Operating Expenses | 11,363 | 9,731 | 16.8 | % | ||||||||
Segment Operating Income | 3,946 | 4,166 | -5.3 | % | ||||||||
Equity in Net Income (Loss) of Affiliates | (4 | ) | 12 | - | ||||||||
Segment Income | $ | 3,942 | $ | 4,178 | -5.6 | % | ||||||
Segment Operating Income Margin | 25.8 | % | 30.0 | % | ||||||||
Wireline | ||||||||||||
Segment Operating Revenues | ||||||||||||
Data | $ | 7,180 | $ | 6,651 | 8.0 | % | ||||||
Voice | 6,551 | 7,483 | -12.5 | % | ||||||||
Other | 1,219 | 1,312 | -7.1 | % | ||||||||
Total Segment Operating Revenues | 14,950 | 15,446 | -3.2 | % | ||||||||
Segment Operating Expenses | ||||||||||||
Operations and support | 10,266 | 10,512 | -2.3 | % | ||||||||
Depreciation and amortization | 2,958 | 3,076 | -3.8 | % | ||||||||
Total Segment Operating Expenses | 13,224 | 13,588 | -2.7 | % | ||||||||
Segment Operating Income | 1,726 | 1,858 | -7.1 | % | ||||||||
Equity in Net Income of Affiliates | - | 5 | - | |||||||||
Segment Income | $ | 1,726 | $ | 1,863 | -7.4 | % | ||||||
Segment Operating Income Margin | 11.5 | % | 12.0 | % | ||||||||
Advertising Solutions | ||||||||||||
Segment Operating Revenues | $ | 868 | $ | 1,041 | -16.6 | % | ||||||
Segment Operating Expenses | ||||||||||||
Operations and support | 573 | 664 | -13.7 | % | ||||||||
Depreciation and amortization | 105 | 138 | -23.9 | % | ||||||||
Total Segment Operating Expenses | 678 | 802 | -15.5 | % | ||||||||
Segment Income | $ | 190 | $ | 239 | -20.5 | % | ||||||
Segment Income Margin | 21.9 | % | 23.0 | % | ||||||||
Other | ||||||||||||
Segment Operating Revenues | $ | 120 | $ | 146 | -17.8 | % | ||||||
Segment Operating Expenses | 174 | 438 | -60.3 | % | ||||||||
Segment Operating Income (Loss) | (54 | ) | (292 | ) | 81.5 | % | ||||||
Equity in Net Income of Affiliates | 253 | 200 | 26.5 | % | ||||||||
Segment Income (Loss) from Continuing Operations | $ | 199 | $ | (92 | ) | - |
Financial Data | ||||||||
AT&T Inc. | ||||||||
Consolidated Balance Sheets | ||||||||
Dollars in millions except per share amounts | ||||||||
3/31/11 | 12/31/10 | |||||||
Unaudited | ||||||||
Assets | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 1,391 | $ | 1,437 | ||||
Accounts receivable - net of allowances for | ||||||||
doubtful accounts of $949 and $957 | 13,246 | 13,610 | ||||||
Prepaid expenses | 1,674 | 1,458 | ||||||
Deferred income taxes | 1,157 | 1,170 | ||||||
Other current assets | 2,269 | 2,276 | ||||||
Total current assets | 19,737 | 19,951 | ||||||
Property, Plant and Equipment - Net | 103,369 | 103,196 | ||||||
Goodwill | 73,602 | 73,601 | ||||||
Licenses | 50,396 | 50,372 | ||||||
Customer Lists and Relationships - Net | 4,154 | 4,708 | ||||||
Other Intangible Assets - Net | 5,423 | 5,440 | ||||||
Investments in Equity Affiliates | 4,845 | 4,515 | ||||||
Other Assets | 6,559 | 6,705 | ||||||
Total Assets | $ | 268,085 | $ | 268,488 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current Liabilities | ||||||||
Debt maturing within one year | $ | 6,902 | $ | 7,196 | ||||
Accounts payable and accrued liabilities | 18,349 | 20,055 | ||||||
Advanced billing and customer deposits | 3,959 | 4,086 | ||||||
Accrued taxes | 1,499 | 72 | ||||||
Dividends payable | 2,545 | 2,542 | ||||||
Total current liabilities | 33,254 | 33,951 | ||||||
Long-Term Debt | 58,126 | 58,971 | ||||||
Deferred Credits and Other Noncurrent Liabilities | ||||||||
Deferred income taxes | 23,149 | 22,070 | ||||||
Postemployment benefit obligation | 28,510 | 28,803 | ||||||
Other noncurrent liabilities | 12,203 | 12,743 | ||||||
Total deferred credits and other noncurrent liabilities | 63,862 | 63,616 | ||||||
Stockholders' Equity | ||||||||
Common stock | 6,495 | 6,495 | ||||||
Additional paid-in capital | 91,636 | 91,731 | ||||||
Retained earnings | 32,649 | 31,792 | ||||||
Treasury stock | (20,949 | ) | (21,083 | ) | ||||
Accumulated other comprehensive income | 2,713 | 2,712 | ||||||
Noncontrolling interest | 299 | 303 | ||||||
Total stockholders' equity | 112,843 | 111,950 | ||||||
Total Liabilities and Stockholders' Equity | $ | 268,085 | $ | 268,488 |
Financial Data | ||||||||
AT&T Inc. | ||||||||
Consolidated Statements of Cash Flows | ||||||||
Dollars in millions | ||||||||
Unaudited | Three months ended March 31, | |||||||
2011 | 2010 | |||||||
Operating Activities | ||||||||
Net income | $ | 3,468 | $ | 2,540 | ||||
Adjustments to reconcile net income to | ||||||||
net cash provided by operating activities: | ||||||||
Depreciation and amortization | 4,584 | 4,780 | ||||||
Undistributed earnings from investments in equity affiliates | (233 | ) | (201 | ) | ||||
Provision for uncollectible accounts | 292 | 350 | ||||||
Deferred income tax expense and noncurrent | ||||||||
unrecognized tax benefits | 731 | 1,609 | ||||||
Net (gain) loss from impairment and sale of investments | (41 | ) | 50 | |||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 72 | 395 | ||||||
Other current assets | (196 | ) | 92 | |||||
Accounts payable and accrued liabilities | (406 | ) | (2,043 | ) | ||||
Net income attributable to noncontrolling interest | (60 | ) | (87 | ) | ||||
Other - net | (479 | ) | (247 | ) | ||||
Total adjustments | 4,264 | 4,698 | ||||||
Net Cash Provided by Operating Activities | 7,732 | 7,238 | ||||||
Investing Activities | ||||||||
Construction and capital expenditures | ||||||||
Capital expenditures | (4,133 | ) | (3,148 | ) | ||||
Interest during construction | (35 | ) | (184 | ) | ||||
Acquisitions, net of cash acquired | (54 | ) | (178 | ) | ||||
Dispositions | 11 | 1 | ||||||
(Purchases) and sales of securities, net | 127 | (20 | ) | |||||
Other | 9 | 7 | ||||||
Net Cash Used in Investing Activities | (4,075 | ) | (3,522 | ) | ||||
Financing Activities | ||||||||
Net change in short-term borrowings with | ||||||||
original maturities of three months or less | (36 | ) | 323 | |||||
Repayment of long-term debt | (1,264 | ) | (2,512 | ) | ||||
Issuance of treasury shares | 18 | 3 | ||||||
Dividends paid | (2,540 | ) | (2,479 | ) | ||||
Other | 119 | (244 | ) | |||||
Net Cash Used in Financing Activities | (3,703 | ) | (4,909 | ) | ||||
Net decrease in cash and cash equivalents | (46 | ) | (1,193 | ) | ||||
Cash and cash equivalents beginning of year | 1,437 | 3,741 | ||||||
Cash and Cash Equivalents End of Period | $ | 1,391 | $ | 2,548 |
Financial Data | |||||||||||
AT&T Inc. | |||||||||||
Supplementary Operating and Financial Data | |||||||||||
Dollars in millions except per share amounts | |||||||||||
Unaudited | Three Months Ended | ||||||||||
3/31/2011 | 3/31/2010 | % Chg | |||||||||
Wireless | |||||||||||
Volumes (000) | |||||||||||
Total | 97,519 | 86,987 | 12.1 | % | |||||||
Postpaid6 | 68,062 | 65,108 | 4.5 | % | |||||||
Prepaid6 | 6,613 | 5,377 | 23.0 | % | |||||||
Reseller6 | 12,241 | 10,717 | 14.2 | % | |||||||
Connected Devices6 | 10,603 | 5,785 | 83.3 | % | |||||||
Wireless Net Adds (000) | |||||||||||
Total | 1,984 | 1,857 | 6.8 | % | |||||||
Postpaid6 | 62 | 512 | -87.9 | % | |||||||
Prepaid6 | 85 | 24 | - | ||||||||
Reseller6 | 561 | 269 | - | ||||||||
Connected Devices6 | 1,276 | 1,052 | 21.3 | % | |||||||
M&A Activity, Partitioned Customers and Other Adjs. | (1 | ) | 10 | ||||||||
Wireless Churn | |||||||||||
Postpaid Churn6 | 1.18 | % | 1.07 | % | 11 BP | ||||||
Total Churn6 | 1.36 | % | 1.30 | % | 6 BP | ||||||
Other | |||||||||||
Licensed POPs (000,000) | 313 | 307 | 2.0 | % | |||||||
In-Region Wireline1 | |||||||||||
Voice | |||||||||||
Total Wireline Voice Connections | 42,457 | 47,385 | -10.4 | % | |||||||
Net Change | (1,106 | ) | (1,103 | ) | -0.3 | % | |||||
Broadband | |||||||||||
Total Wireline Broadband Connections | 16,485 | 16,044 | 2.7 | % | |||||||
Net Change | 175 | 255 | -31.4 | % | |||||||
Video | |||||||||||
U-verse | 3,205 | 2,296 | 39.6 | % | |||||||
Satellite | 1,886 | 2,127 | -11.3 | % | |||||||
Total Video Connections | 5,091 | 4,423 | 15.1 | % | |||||||
Net Change | 174 | 184 | -5.4 | % | |||||||
Consumer Revenue Connections | |||||||||||
Broadband3 | 14,515 | 13,989 | 3.8 | % | |||||||
Video Connections4 | 5,085 | 4,422 | 15.0 | % | |||||||
Voice2 | 23,479 | 26,633 | -11.8 | % | |||||||
Total Consumer Revenue Connections | 43,079 | 45,044 | -4.4 | % | |||||||
Net Change | (348 | ) | (243 | ) | -43.2 | % | |||||
AT&T Inc. | |||||||||||
Construction and capital expenditures | |||||||||||
Capital expenditures | $ | 4,133 | $ | 3,148 | 31.3 | % | |||||
Interest during construction | $ | 35 | $ | 184 | -81.0 | % | |||||
Dividends Declared per Share | $ | 0.43 | $ | 0.42 | 2.4 | % | |||||
End of Period Common Shares Outstanding (000,000) | 5,918 | 5,909 | 0.2 | % | |||||||
Debt Ratio5 | 36.6 | % | 40.5 | % | -390 BP | ||||||
Total Employees | 260,690 | 276,280 | -5.6 | % | |||||||
1 | In-region wireline represents access lines served by AT&T's incumbent local exchange companies. | ||||
2 | Includes consumer U-verse Voice over Internet Protocol connections of 1,861 as of March 31, 2011. | ||||
3 | Consumer wireline 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 long-term debt plus debt maturing within one year divided by total debt plus total stockholders' equity. | ||||
6 | Prior year amounts restated to conform to current period reporting methodology. | ||||
Note: For the end of 1Q11, total switched access lines were 40,596, retail business switched access lines totaled 16,656, and wholesale | |||||
and coin switched access lines totaled 2,322. |