Financial Data | ||||||||||||||||||||||||
AT&T Inc. | ||||||||||||||||||||||||
Consolidated Statements of Income | ||||||||||||||||||||||||
Dollars in millions except per share amounts | ||||||||||||||||||||||||
Unaudited | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
9/30/2015 | 9/30/2014 | % Chg | 9/30/2015 | 9/30/2014 | % Chg | |||||||||||||||||||
Operating Revenues | ||||||||||||||||||||||||
Service | $ | 35,625 | $ | 29,790 | 19.6 | % | $ | 94,128 | $ | 89,122 | 5.6 | % | ||||||||||||
Equipment | 3,466 | 3,167 | 9.4 | % | 10,554 | 8,886 | 18.8 | % | ||||||||||||||||
Total Operating Revenues | 39,091 | 32,957 | 18.6 | % | 104,682 | 98,008 | 6.8 | % | ||||||||||||||||
Operating Expenses | ||||||||||||||||||||||||
Cost of services and sales | ||||||||||||||||||||||||
Equipment | 4,313 | 4,432 | -2.7 | % | 13,035 | 12,503 | 4.3 | % | ||||||||||||||||
Broadcast, programming and operations | 4,081 | 1,038 | - | 6,351 | 3,019 | - | ||||||||||||||||||
Other cost of services and sales (exclusive of depreciation and amortization shown separately below) | 9,402 | 8,866 | -6.0 | % | 27,969 | 26,167 | -6.9 | % | ||||||||||||||||
Selling, general and administrative | 9,107 | 8,475 | 7.5 | % | 24,535 | 24,932 | -1.6 | % | ||||||||||||||||
Depreciation and amortization | 6,265 | 4,539 | 38.0 | % | 15,539 | 13,706 | 13.4 | % | ||||||||||||||||
Total Operating Expenses | 33,168 | 27,350 | 21.3 | % | 87,429 | 80,327 | 8.8 | % | ||||||||||||||||
Operating Income | 5,923 | 5,607 | 5.6 | % | 17,253 | 17,681 | -2.4 | % | ||||||||||||||||
Interest Expense | 1,146 | 1,016 | 12.8 | % | 2,977 | 2,757 | 8.0 | % | ||||||||||||||||
Equity in Net Income (Loss) of Affiliates | 15 | (2 | ) | - | 48 | 188 | -74.5 | % | ||||||||||||||||
Other (Expense) Income - Net | (57 | ) | 42 | - | 61 | 1,456 | -95.8 | % | ||||||||||||||||
Income Before Income Taxes | 4,735 | 4,631 | 2.2 | % | 14,385 | 16,568 | -13.2 | % | ||||||||||||||||
Income Tax Expense | 1,657 | 1,444 | 14.8 | % | 4,784 | 5,914 | -19.1 | % | ||||||||||||||||
Net Income | 3,078 | 3,187 | -3.4 | % | 9,601 | 10,654 | -9.9 | % | ||||||||||||||||
Less: Net Income Attributable to Noncontrolling Interest | (84 | ) | (57 | ) | -47.4 | % | (262 | ) | (213 | ) | -23.0 | % | ||||||||||||
Net Income Attributable to AT&T | $ | 2,994 | $ | 3,130 | -4.3 | % | $ | 9,339 | $ | 10,441 | -10.6 | % | ||||||||||||
Basic Earnings Per Share Attributable to AT&T | $ | 0.50 | $ | 0.60 | -16.7 | % | $ | 1.71 | $ | 2.00 | -14.5 | % | ||||||||||||
Weighted Average Common Shares Outstanding (000,000) | 5,924 | 5,198 | 14.0 | % | 5,447 | 5,208 | 4.6 | % | ||||||||||||||||
Diluted Earnings Per Share Attributable to AT&T | $ | 0.50 | $ | 0.60 | -16.7 | % | $ | 1.71 | $ | 2.00 | -14.5 | % | ||||||||||||
Weighted Average Common Shares Outstanding with Dilution (000,000) | 5,943 | 5,214 | 14.0 | % | 5,463 | 5,224 | 4.6 | % | ||||||||||||||||
Financial Data | |||||||||||||||||||||||||
AT&T Inc. | |||||||||||||||||||||||||
Statements of Segment Income | |||||||||||||||||||||||||
Dollars in millions | |||||||||||||||||||||||||
Unaudited | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
9/30/2015 | 9/30/2014 | % Chg | 9/30/2015 | 9/30/2014 | % Chg | ||||||||||||||||||||
Business Solutions | |||||||||||||||||||||||||
Segment Operating Revenues | |||||||||||||||||||||||||
Wireless service | $ | 7,732 | $ | 7,542 | 2.5 | % | $ | 23,003 | $ | 22,593 | 1.8 | % | |||||||||||||
Fixed strategic services | 2,763 | 2,454 | 12.6 | % | 8,083 | 7,103 | 13.8 | % | |||||||||||||||||
Legacy voice and data services | 4,499 | 4,928 | -8.7 | % | 13,743 | 15,055 | -8.7 | % | |||||||||||||||||
Other services | 885 | 977 | -9.4 | % | 2,585 | 2,834 | -8.8 | % | |||||||||||||||||
Wireless equipment | 1,813 | 1,586 | 14.3 | % | 5,499 | 4,292 | 28.1 | % | |||||||||||||||||
Total Segment Operating Revenues | 17,692 | 17,487 | 1.2 | % | 52,913 | 51,877 | 2.0 | % | |||||||||||||||||
Segment Operating Expenses | |||||||||||||||||||||||||
Operations and Support Expenses | 10,921 | 11,295 | -3.3 | % | 32,966 | 32,836 | 0.4 | % | |||||||||||||||||
Depreciation and amortization | 2,474 | 2,331 | 6.1 | % | 7,276 | 7,009 | 3.8 | % | |||||||||||||||||
Total Segment Operating Expenses | 13,395 | 13,626 | -1.7 | % | 40,242 | 39,845 | 1.0 | % | |||||||||||||||||
Segment Operating Income | 4,297 | 3,861 | 11.3 | % | 12,671 | 12,032 | 5.3 | % | |||||||||||||||||
Equity in Net Income of Affiliates | - | - | - | - | - | - | |||||||||||||||||||
Segment Contribution | $ | 4,297 | $ | 3,861 | 11.3 | % | $ | 12,671 | $ | 12,032 | 5.3 | % | |||||||||||||
Segment Operating Income Margin | 24.3 | % | 22.1 | % | 23.9 | % | 23.2 | % | |||||||||||||||||
Entertainment and Internet Services | |||||||||||||||||||||||||
Segment Operating Revenues | |||||||||||||||||||||||||
Video entertainment | $ | 7,162 | $ | 1,719 | - | $ | 11,024 | $ | 5,016 | - | |||||||||||||||
High-speed internet | 1,685 | 1,414 | 19.2 | % | 4,861 | 4,040 | 20.3 | % | |||||||||||||||||
Legacy voice and data services | 1,419 | 1,834 | -22.6 | % | 4,547 | 5,897 | -22.9 | % | |||||||||||||||||
Equipment and other | 592 | 586 | 1.0 | % | 1,868 | 1,687 | 10.7 | % | |||||||||||||||||
Total Segment Operating Revenues | 10,858 | 5,553 | 95.5 | % | 22,300 | 16,640 | 34.0 | % | |||||||||||||||||
Segment Operating Expenses | |||||||||||||||||||||||||
Operations and Support Expenses | 8,450 | 4,781 | 76.7 | % | 18,222 | 14,182 | 28.5 | % | |||||||||||||||||
Depreciation and amortization | 1,389 | 1,109 | 25.2 | % | 3,519 | 3,396 | 3.6 | % | |||||||||||||||||
Total Segment Operating Expenses | 9,839 | 5,890 | 67.0 | % | 21,741 | 17,578 | 23.7 | % | |||||||||||||||||
Segment Operating Income | 1,019 | (337 | ) | - | 559 | (938 | ) | - | |||||||||||||||||
Equity in Net Income (Loss) of Affiliates | 2 | - | - | (16 | ) | - | - | ||||||||||||||||||
Segment Contribution | $ | 1,021 | $ | (337 | ) | - | $ | 543 | $ | (938 | ) | - | |||||||||||||
Segment Operating Income Margin | 9.4 | % | -6.1 | % | 2.5 | % | -5.6 | % |
Financial Data | |||||||||||||||||||||||||
AT&T Inc. | |||||||||||||||||||||||||
Statements of Segment Income | |||||||||||||||||||||||||
Dollars in millions | |||||||||||||||||||||||||
Unaudited | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
9/30/2015 | 9/30/2014 | % Chg | 9/30/2015 | 9/30/2014 | % Chg | ||||||||||||||||||||
Consumer Mobility | |||||||||||||||||||||||||
Segment Operating Revenues | |||||||||||||||||||||||||
Postpaid wireless service | $ | 5,527 | $ | 6,071 | -9.0 | % | $ | 16,783 | $ | 18,490 | -9.2 | % | |||||||||||||
Prepaid wireless service | 1,198 | 1,163 | 3.0 | % | 3,411 | 3,106 | 9.8 | % | |||||||||||||||||
Other service revenue | 638 | 646 | -1.2 | % | 1,825 | 1,768 | 3.2 | % | |||||||||||||||||
Equipment | 1,421 | 1,328 | 7.0 | % | 4,298 | 3,883 | 10.7 | % | |||||||||||||||||
Total Segment Operating Revenues | 8,784 | 9,208 | -4.6 | % | 26,317 | 27,247 | -3.4 | % | |||||||||||||||||
Segment Operating Expenses | |||||||||||||||||||||||||
Operations and Support Expenses | 5,065 | 5,731 | -11.6 | % | 15,808 | 17,173 | -7.9 | % | |||||||||||||||||
Depreciation and amortization | 976 | 950 | 2.7 | % | 2,912 | 2,846 | 2.3 | % | |||||||||||||||||
Total Segment Operating Expenses | 6,041 | 6,681 | -9.6 | % | 18,720 | 20,019 | -6.5 | % | |||||||||||||||||
Segment Operating Income | 2,743 | 2,527 | 8.5 | % | 7,597 | 7,228 | 5.1 | % | |||||||||||||||||
Equity in Net Income (Loss) of Affiliates | - | (1 | ) | - | - | (1 | ) | - | |||||||||||||||||
Segment Contribution | $ | 2,743 | $ | 2,526 | 8.6 | % | $ | 7,597 | $ | 7,227 | 5.1 | % | |||||||||||||
Segment Operating Income Margin | 31.2 | % | 27.4 | % | 28.9 | % | 26.5 | % | |||||||||||||||||
International | |||||||||||||||||||||||||
Segment Operating Revenues | |||||||||||||||||||||||||
Video entertainment | $ | 945 | $ | - | - | $ | 945 | $ | - | - | |||||||||||||||
Wireless service | 494 | - | - | 1,153 | - | - | |||||||||||||||||||
Wireless equipment | 87 | - | - | 155 | - | - | |||||||||||||||||||
Total Segment Operating Revenues | 1,526 | - | - | 2,253 | - | - | |||||||||||||||||||
Segment Operating Expenses | |||||||||||||||||||||||||
Operations and Support Expenses | 1,384 | - | - | 2,131 | - | - | |||||||||||||||||||
Depreciation and amortization | 225 | - | - | 346 | - | - | |||||||||||||||||||
Total Segment Operating Expenses | 1,609 | - | - | 2,477 | - | - | |||||||||||||||||||
Segment Operating Income (Loss) | (83 | ) | - | - | (224 | ) | - | - | |||||||||||||||||
Equity in Net Income (Loss) of Affiliates | (4 | ) | - | - | (4 | ) | 153 | - | |||||||||||||||||
Segment Contribution | $ | (87 | ) | $ | - | - | $ | (228 | ) | $ | 153 | - | |||||||||||||
Segment Operating Income Margin | -5.4 | % | -9.9 | % | |||||||||||||||||||||
Financial Data | ||||||||
AT&T Inc. | ||||||||
Consolidated Balance Sheets | ||||||||
Dollars in millions | ||||||||
Unaudited | 9/30/15 | 12/31/14 | ||||||
As Adjusted | ||||||||
Assets | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 6,202 | $ | 8,603 | ||||
Accounts receivable - net of allowances for doubtful accounts of $656 and $454 | 16,329 | 14,527 | ||||||
Prepaid expenses | 1,166 | 831 | ||||||
Other current assets | 11,254 | 9,802 | ||||||
Total current assets | 34,951 | 33,763 | ||||||
Property, Plant and Equipment - Net | 122,836 | 112,898 | ||||||
Goodwill | 105,966 | 69,692 | ||||||
Licenses | 93,063 | 60,824 | ||||||
Customer Lists and Relationships - Net | 19,608 | 812 | ||||||
Other Intangible Assets - Net | 8,236 | 5,327 | ||||||
Investments in Equity Affiliates | 1,744 | 250 | ||||||
Other Assets | 13,585 | 13,659 | ||||||
Total Assets | $ | 399,989 | $ | 297,225 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current Liabilities | ||||||||
Debt maturing within one year | $ | 7,535 | $ | 6,056 | ||||
Accounts payable and accrued liabilities | 28,280 | 23,592 | ||||||
Advanced billing and customer deposits | 4,640 | 4,105 | ||||||
Accrued taxes | 4,591 | 1,136 | ||||||
Dividends payable | 2,892 | 2,438 | ||||||
Total current liabilities | 47,938 | 37,327 | ||||||
Long-Term Debt | 119,395 | 76,011 | ||||||
Deferred Credits and Other Noncurrent Liabilities | ||||||||
Deferred income taxes | 53,044 | 38,549 | ||||||
Postemployment benefit obligation | 36,396 | 37,079 | ||||||
Other noncurrent liabilities | 20,427 | 17,989 | ||||||
Total deferred credits and other noncurrent liabilities | 109,867 | 93,617 | ||||||
Stockholders' Equity | ||||||||
Common stock | 6,495 | 6,495 | ||||||
Additional paid-in capital | 89,717 | 91,108 | ||||||
Retained earnings | 32,627 | 31,081 | ||||||
Treasury stock | (12,309 | ) | (47,029 | ) | ||||
Accumulated other comprehensive income | 5,294 | 8,061 | ||||||
Noncontrolling interest | 965 | 554 | ||||||
Total stockholders' equity | 122,789 | 90,270 | ||||||
Total Liabilities and Stockholders' Equity | $ | 399,989 | $ | 297,225 |
Financial Data | ||||||||
AT&T Inc. | ||||||||
Consolidated Statements of Cash Flows | ||||||||
Dollars in millions | ||||||||
Unaudited | ||||||||
Nine months ended September 30, | ||||||||
2015 | 2014 | |||||||
As Adjusted | ||||||||
Operating Activities | ||||||||
Net income | $ | 9,601 | $ | 10,654 | ||||
Adjustments to reconcile net income to | ||||||||
net cash provided by operating activities: | ||||||||
Depreciation and amortization | 15,539 | 13,706 | ||||||
Undistributed earnings from investments in equity affiliates | (36 | ) | (45 | ) | ||||
Provision for uncollectible accounts | 895 | 692 | ||||||
Deferred income tax expense | 1,539 | 1,450 | ||||||
Net gain from sale of investments, net of impairments | (46 | ) | (1,374 | ) | ||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 453 | (1,269 | ) | |||||
Other current assets | 350 | (840 | ) | |||||
Accounts payable and accrued liabilities | 1,279 | 4,790 | ||||||
Retirement benefit funding | (595 | ) | (420 | ) | ||||
Other - net | (2,284 | ) | (1,751 | ) | ||||
Total adjustments | 17,094 | 14,939 | ||||||
Net Cash Provided by Operating Activities | 26,695 | 25,593 | ||||||
Investing Activities | ||||||||
Construction and capital expenditures: | ||||||||
Capital expenditures | (13,356 | ) | (16,829 | ) | ||||
Interest during construction | (566 | ) | (178 | ) | ||||
Acquisitions, net of cash acquired | (30,694 | ) | (2,053 | ) | ||||
Dispositions | 79 | 6,074 | ||||||
Sales (purchases) of securities, net | 1,490 | (1,996 | ) | |||||
Return of advances to and investments in equity affiliates | - | 3 | ||||||
Other | - | (1 | ) | |||||
Net Cash Used in Investing Activities | (43,047 | ) | (14,980 | ) | ||||
Financing Activities | ||||||||
Net change in short-term borrowings with | ||||||||
original maturities of three months or less | (1 | ) | (16 | ) | ||||
Issuance of long-term debt | 33,967 | 8,564 | ||||||
Repayment of long-term debt | (9,962 | ) | (10,376 | ) | ||||
Purchase of treasury stock | - | (1,617 | ) | |||||
Issuance of treasury stock | 133 | 34 | ||||||
Dividends paid | (7,311 | ) | (7,170 | ) | ||||
Other | (2,875 | ) | (913 | ) | ||||
Net Cash Provided by (Used in) Financing Activities | 13,951 | (11,494 | ) | |||||
Net decrease in cash and cash equivalents | (2,401 | ) | (881 | ) | ||||
Cash and cash equivalents beginning of year | 8,603 | 3,339 | ||||||
Cash and Cash Equivalents End of Period | $ | 6,202 | $ | 2,458 |
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 | Nine Months Ended | ||||||||||||||||||||||
9/30/2015 | 9/30/2014 | % Chg | 9/30/2015 | 9/30/2014 | % Chg | |||||||||||||||||||
Business Solutions Wireless Subscribers | 71,561 | 62,551 | 14.4 | % | ||||||||||||||||||||
Postpaid | 47,414 | 44,063 | 7.6 | % | ||||||||||||||||||||
Reseller | 83 | 6 | - | |||||||||||||||||||||
Connected Devices1 | 24,064 | 18,482 | 30.2 | % | ||||||||||||||||||||
Business Solutions Wireless Net Adds | 1,875 | 1,816 | 3.2 | % | 4,968 | 3,646 | 36.3 | % | ||||||||||||||||
Postpaid | 265 | 545 | -51.4 | % | 850 | 1,498 | -43.3 | % | ||||||||||||||||
Reseller | 8 | (4 | ) | - | 14 | 4 | - | |||||||||||||||||
Connected Devices1 | 1,602 | 1,275 | 25.6 | % | 4,104 | 2,144 | 91.4 | % | ||||||||||||||||
Business Wireless Postpaid Churn | 1.05 | % | 0.84 | % | 21 BP | 0.95 | % | 0.84 | % | 11 BP | ||||||||||||||
Consumer Mobility Subscribers | 54,845 | 56,099 | -2.2 | % | ||||||||||||||||||||
Postpaid | 29,257 | 31,043 | -5.8 | % | ||||||||||||||||||||
Prepaid1 | 10,988 | 10,026 | 9.6 | % | ||||||||||||||||||||
Reseller | 13,647 | 13,877 | -1.7 | % | ||||||||||||||||||||
Connected Devices1 | 953 | 1,153 | -17.3 | % | ||||||||||||||||||||
Consumer Mobility Net Adds | 638 | 191 | - | 857 | 57 | - | ||||||||||||||||||
Postpaid | 23 | 240 | -90.4 | % | 289 | 938 | -69.2 | % | ||||||||||||||||
Prepaid1 | 466 | (46 | ) | - | 895 | (244 | ) | - | ||||||||||||||||
Reseller | 149 | 91 | 63.7 | % | (218 | ) | (286 | ) | 23.8 | % | ||||||||||||||
Connected Devices1 | - | (94 | ) | - | (109 | ) | (351 | ) | 68.9 | % | ||||||||||||||
Consumer Mobility Postpaid Churn | 1.33 | % | 1.20 | % | 13 BP | 1.23 | % | 1.15 | % | 8 BP | ||||||||||||||
Total Consumer Mobility Churn | 1.90 | % | 2.03 | % | -13 BP | 1.93 | % | 1.99 | % | -6 BP | ||||||||||||||
Entertainment and Internet Services Connections | 52,637 | 34,694 | 51.7 | % | ||||||||||||||||||||
Video Connections | 25,424 | 5,848 | - | |||||||||||||||||||||
Satellite | 19,570 | - | - | |||||||||||||||||||||
U-verse | 5,854 | 5,848 | 0.1 | % | ||||||||||||||||||||
Video Net Adds | (66 | ) | 212 | - | (40 | ) | 591 | - | ||||||||||||||||
Satellite | 26 | - | - | 26 | - | - | ||||||||||||||||||
U-verse | (92 | ) | 212 | - | (66 | ) | 591 | - | ||||||||||||||||
Broadband Connections | 14,322 | 14,465 | -1.0 | % | ||||||||||||||||||||
IP | 12,185 | 11,010 | 10.7 | % | ||||||||||||||||||||
DSL | 2,137 | 3,455 | -38.1 | % | ||||||||||||||||||||
Broadband Net Adds | (106 | ) | 68 | - | (120 | ) | 152 | - | ||||||||||||||||
IP | 172 | 547 | -68.6 | % | 802 | 1,527 | -47.5 | % | ||||||||||||||||
DSL | (278 | ) | (479 | ) | 42.0 | % | (922 | ) | (1,375 | ) | 32.9 | % | ||||||||||||
Total Wireline Voice Connections | 12,891 | 14,381 | -10.4 | % | ||||||||||||||||||||
AT&T International | ||||||||||||||||||||||||
Wireless Subscribers and Connections | ||||||||||||||||||||||||
Subscribers | 8,091 | - | - | |||||||||||||||||||||
Net Adds | (231 | ) | - | - | (689 | ) | - | - | ||||||||||||||||
Total Churn | 5.61 | % | - | - | 6.87 | % | - | - | ||||||||||||||||
Video Subscribers and Connections | ||||||||||||||||||||||||
Latin America Video Subscribers | (113 | ) | - | - | 12,544 | - | - | |||||||||||||||||
Pan Americana | 16 | - | - | 7,006 | - | - | ||||||||||||||||||
Brazil | (129 | ) | - | - | 5,538 | - | - | |||||||||||||||||
AT&T Total Subscribers and Connections | ||||||||||||||||||||||||
AT&T Mobility Subscribers | 126,406 | 118,650 | 6.5 | % | ||||||||||||||||||||
Postpaid | 76,671 | 75,105 | 2.1 | % | ||||||||||||||||||||
Prepaid1 | 10,988 | 10,026 | 9.6 | % | ||||||||||||||||||||
Reseller | 13,729 | 13,884 | -1.1 | % | ||||||||||||||||||||
Connected Devices1 | 25,018 | 19,635 | 27.4 | % | ||||||||||||||||||||
AT&T Mobility Net Adds | 2,513 | 2,007 | 25.2 | % | 5,825 | 3,703 | 57.3 | % | ||||||||||||||||
Postpaid | 289 | 785 | -63.2 | % | 1,140 | 2,436 | -53.2 | % | ||||||||||||||||
Prepaid1 | 466 | (46 | ) | - | 895 | (244 | ) | - | ||||||||||||||||
Reseller | 156 | 87 | 79.3 | % | (205 | ) | (281 | ) | 27.0 | % | ||||||||||||||
Connected Devices1 | 1,602 | 1,181 | 35.6 | % | 3,995 | 1,792 | - | |||||||||||||||||
M&A Activity, Partitioned Customers and Other Adjs. | (9 | ) | 9 | - | 27 | 4,571 | -99.4 | % | ||||||||||||||||
AT&T Mobility Churn | ||||||||||||||||||||||||
Postpaid Churn | 1.16 | % | 0.99 | % | 17 BP | 1.06 | % | 0.97 | % | 9 BP | ||||||||||||||
Total Churn | 1.33 | % | 1.36 | % | -3 BP | 1.35 | % | 1.41 | % | -6 BP | ||||||||||||||
Other | ||||||||||||||||||||||||
Domestic Licensed POPs (000,000) | 321 | 321 | - | |||||||||||||||||||||
Total Video Subscribers | 37,994 | 6,067 | - | |||||||||||||||||||||
Domestic | 25,450 | 6,067 | - | |||||||||||||||||||||
Pan Americana | 7,006 | - | - | |||||||||||||||||||||
Brazil | 5,538 | - | - | |||||||||||||||||||||
Total Video Net Adds | (178 | ) | 216 | - | (150 | ) | 607 | - | ||||||||||||||||
Domestic | (65 | ) | 216 | - | (37 | ) | 607 | - | ||||||||||||||||
Pan Americana | 16 | - | - | 16 | - | - | ||||||||||||||||||
Brazil | (129 | ) | - | - | (129 | ) | - | - | ||||||||||||||||
Total Broadband Connections | 15,832 | 16,486 | -4.0 | % | ||||||||||||||||||||
IP | 13,076 | 12,098 | 8.1 | % | ||||||||||||||||||||
DSL | 2,756 | 4,388 | -37.2 | % | ||||||||||||||||||||
Broadband Net Adds | (129 | ) | 38 | - | (196 | ) | 61 | - | ||||||||||||||||
IP | 192 | 601 | -68.1 | % | 871 | 1,723 | -49.4 | % | ||||||||||||||||
DSL | (321 | ) | (563 | ) | 43.0 | % | (1,067 | ) | (1,662 | ) | 35.8 | % | ||||||||||||
Total Wireline Voice Connections | 22,795 | 26,220 | -13.1 | % | ||||||||||||||||||||
AT&T Inc. | ||||||||||||||||||||||||
Construction and capital expenditures: | ||||||||||||||||||||||||
Capital expenditures | $ | 5,028 | $ | 5,180 | -2.9 | % | $ | 13,356 | $ | 16,829 | -20.6 | % | ||||||||||||
Interest during construction | $ | 227 | $ | 60 | - | $ | 566 | $ | 178 | - | ||||||||||||||
Dividends Declared per Share | $ | 0.47 | $ | 0.46 | 2.2 | % | $ | 1.41 | $ | 1.38 | 2.2 | % | ||||||||||||
End of Period Common Shares Outstanding (000,000) | 6,152 | 5,185 | 18.6 | % | ||||||||||||||||||||
Debt Ratio2 | 50.8 | % | 43.9 | % | 690 BP | |||||||||||||||||||
Total Employees | 281,240 | 247,700 | 13.5 | % | ||||||||||||||||||||
1 | Prior year amounts restated to conform to current period reporting methodology. |
2 | Total long-term debt plus debt maturing within one year divided by total debt plus total stockholders' equity. |
Notes: For the end of 3Q15, total switched access lines were 17,352. | |
Business Solutions and Consumer Mobility may not total to AT&T Mobility due to rounding. |
Financial Data | ||||||||||||||||||||||||
AT&T Inc. | ||||||||||||||||||||||||
Supplemental AT&T Mobility Results | ||||||||||||||||||||||||
Dollars in millions | ||||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
9/30/2015 | 9/30/2014 | % Chg | 9/30/2015 | 9/30/2014 | % Chg | |||||||||||||||||||
AT&T Mobility | ||||||||||||||||||||||||
Operating Revenues | ||||||||||||||||||||||||
Service | $ | 15,095 | $ | 15,423 | -2.1 | % | $ | 45,022 | $ | 45,958 | -2.0 | % | ||||||||||||
Equipment | 3,234 | 2,914 | 11.0 | % | 9,797 | 8,175 | 19.8 | % | ||||||||||||||||
Total Segment Operating Revenues | 18,329 | 18,337 | - | 54,819 | 54,133 | 1.3 | % | |||||||||||||||||
Operating Expenses | ||||||||||||||||||||||||
Operations and Support Expenses | 10,865 | 11,683 | -7.0 | % | 33,310 | 34,021 | -2.1 | % | ||||||||||||||||
Depreciation and amortization | 2,046 | 1,909 | 7.2 | % | 6,082 | 5,785 | 5.1 | % | ||||||||||||||||
Total Operating Expenses | 12,911 | 13,592 | -5.0 | % | 39,392 | 39,806 | -1.0 | % | ||||||||||||||||
Operating Income | 5,418 | 4,745 | 14.2 | % | 15,427 | 14,327 | 7.7 | % | ||||||||||||||||
Equity in Net Income (Loss) of Affiliates | - | (1 | ) | - | - | (1 | ) | - | ||||||||||||||||
Income | $ | 5,418 | $ | 4,744 | 14.2 | % | $ | 15,427 | $ | 14,326 | 7.7 | % | ||||||||||||
Operating Income Margin | 29.6 | % | 25.9 | % | 28.1 | % | 26.5 | % |
Financial Data | ||||||||||||
AT&T Inc. | ||||||||||||
Non-GAAP Consolidated Reconciliation | ||||||||||||
Adjusted Operating Revenues and Adjusted Consolidated EBITDA | ||||||||||||
Dollars in millions | ||||||||||||
Unaudited | ||||||||||||
Three Months Ended | ||||||||||||
September 30, | ||||||||||||
2013 | 2014 | 2015 | ||||||||||
Reported Operating Revenues | $ | 32,158 | $ | 32,957 | $ | 39,091 | ||||||
Adjustments: | ||||||||||||
DIRECTV deferred revenue4 | $ | - | $ | - | $ | 85 | ||||||
Adjusted Operating Revenues | $ | 32,158 | $ | 32,957 | $ | 39,176 | ||||||
Reported Operating Income | $ | 6,277 | $ | 5,607 | $ | 5,923 | ||||||
Plus: Depreciation and Amortization | 4,615 | 4,539 | 6,265 | |||||||||
EBITDA1 | $ | 10,892 | $ | 10,146 | $ | 12,188 | ||||||
Adjustments: | ||||||||||||
Wireless merger integration costs2 | - | 171 | 142 | |||||||||
Leap network decommissioning | - | - | 250 | |||||||||
DIRECTV/Mexico merger integration items3 | - | 42 | 303 | |||||||||
Employee separation costs | - | - | 122 | |||||||||
Spectrum transfer | (229 | ) | - | - | ||||||||
Other | - | - | 35 | |||||||||
Adjusted EBITDA | $ | 10,663 | $ | 10,359 | $ | 13,040 | ||||||
Year-over-year growth - Adjusted | -2.9 | % | 25.9 | % | ||||||||
Adjusted EBITDA Margin* | 33.2 | % | 31.4 | % | 33.3 | % | ||||||
1 EBITDA is defined as operating income before depreciation and amortization. 2 Adjustments include Operations and Support expenses for domestic wireless integration costs. 3 Adjustments include Operations and Support expenses for DIRECTV merger and integration items and international wireless integration costs. 4 Adjustment includes DIRECTV deferred revenue not recognized due to purchase accounting fair value adjustment. | ||||||
Adjusted Operating Revenues and Adjusted EBITDA are non-GAAP financial measures calculated by excluding costs which are non-recurring in nature, including dispositions and merger integration and transaction costs. Adjusted EBITDA also excludes net actuarial gains or losses associated with our pension and postemployment benefit plans. Management believes that these measures provide relevant and useful information to investors and other users of our financial data in evaluating the effectiveness of our operations and underlying business trends. Adjusted Operating Revenues and Adjusted EBITDA should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP. Our calculation of Adjusted EBITDA, as presented, may differ from similarly titled measures reported by other companies. *Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by Adjusted Operating Revenues. | ||||||
Financial Data | ||||||||||||
AT&T Inc. | ||||||||||||
Non-GAAP Consolidated Reconciliation | ||||||||||||
Adjusted Operating Revenues, Adjusted Operating Income and Margin | ||||||||||||
Dollars in millions | ||||||||||||
Unaudited | ||||||||||||
Three Months Ended | ||||||||||||
September 30, | ||||||||||||
2013 | 2014 | 2015 | ||||||||||
Reported Operating Revenues | $ | 32,158 | $ | 32,957 | $ | 39,091 | ||||||
Adjustments: | ||||||||||||
DIRECTV deferred revenue3 | $ | - | $ | - | $ | 85 | ||||||
Adjusted Operating Revenues | $ | 32,158 | $ | 32,957 | $ | 39,176 | ||||||
Reported Operating Income | $ | 6,277 | $ | 5,607 | $ | 5,923 | ||||||
Adjustments: | ||||||||||||
Amortization of intangible assets | - | 42 | 1,171 | |||||||||
Wireless merger integration costs1 | - | 171 | 142 | |||||||||
Leap network decommissioning | - | - | 250 | |||||||||
DIRECTV/Mexico integration items2 | - | 42 | 303 | |||||||||
Employee separation costs | - | - | 122 | |||||||||
Spectrum transfer | (229 | ) | - | - | ||||||||
Other | - | - | 35 | |||||||||
Adjusted Operating Income | $ | 6,048 | $ | 5,862 | $ | 7,946 | ||||||
Year-over-year growth - Adjusted | -3.1 | % | 35.6 | % | ||||||||
Adjusted Operating Income Margin* | 18.8 | % | 17.8 | % | 20.3 | % | ||||||
1 Adjustments include Operations and Support expenses for domestic wireless integration costs. 2 Adjustments include DIRECTV merger integration items and Operations and Support expenses for international wireless integration costs. 3 Adjustments include DIRECTV deferred revenue not recognized due to purchase accounting fair value adjustment. | |||||
Adjusted Operating Revenue and Adjusted Operating Income and Margin are non-GAAP financial measures calculated by excluding from operating revenues and operating expenses significant items that are non-operational or non-recurring in nature. Management believes that these measures provide relevant and useful information to investors and other users of our financial data in evaluating the effectiveness of our operations and underlying business trends. Adjusted Operating Revenue and Adjusted Operating Income and Margin should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP. Our calculation of Adjusted Operating Income and Margin, as presented, may differ from similarly titled measures reported by other companies. *Adjusted Operating Income Margin is calculated by dividing Adjusted Operating Income by Adjusted Operating Revenues. | |||||
Financial Data | ||||||||||||||||
AT&T Inc. | ||||||||||||||||
Non-GAAP Consolidated Reconciliation | ||||||||||||||||
Free Cash Flow | ||||||||||||||||
Dollars in millions | ||||||||||||||||
Unaudited and Adjusted | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2015 | 2014 | 2015 | |||||||||||||
Net cash provided by operating activities | $ | 8,724 | $ | 10,797 | $ | 25,593 | $ | 26,695 | ||||||||
Less: Construction and capital expenditures | (5,240 | ) | (5,255 | ) | (17,007 | ) | (13,922 | ) | ||||||||
Free Cash Flow | $ | 3,484 | $ | 5,542 | $ | 8,586 | $ | 12,773 | ||||||||
Free Cash Flow after Dividends | ||||||||||||||||
Dollars in millions | ||||||||||||||||
Unaudited | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2015 | 2014 | 2015 | |||||||||||||
Net cash provided by operating activities | $ | 8,724 | $ | 10,797 | $ | 25,593 | $ | 26,695 | ||||||||
Less: Construction and capital expenditures | (5,240 | ) | (5,255 | ) | (17,007 | ) | (13,922 | ) | ||||||||
Free Cash Flow | 3,484 | 5,542 | 8,586 | 12,773 | ||||||||||||
Less: Dividends paid | (2,386 | ) | (2,438 | ) | (7,170 | ) | (7,311 | ) | ||||||||
Free Cash Flow after Dividends | $ | 1,098 | $ | 3,104 | $ | 1,416 | $ | 5,462 | ||||||||
Free Cash Flow Dividend Payout Ratio | 44 | % | 57 | % |
Free cash flow includes reimbursements of certain postretirement benefits paid. Free cash flow is defined as cash from operations minus construction and capital expenditures. Free cash flow after dividends is defined as cash from operations minus construction, capital expenditures and dividends. Free cash flow dividend payout ratio is defined as the percentage of dividends paid to free cash flow. We believe these metrics provide useful information to our investors because management regularly reviews free cash flow as an important indicator of the cash generated by normal business operations, including capital expenditures, and makes decisions based on it. Management also views free cash flow as a measure of cash available to pay debt and return cash to shareowners. | ||||||||
Financial Data | |||||||||||||||
AT&T Inc. | |||||||||||||||
Non-GAAP Consolidated Reconciliation | |||||||||||||||
Pro Forma Annualized Net-Debt-to-Adjusted-EBITDA Ratio1 | |||||||||||||||
Dollars in millions | |||||||||||||||
Unaudited | |||||||||||||||
Three Months Ended | |||||||||||||||
3/31/15 | 6/30/15 | 9/30/15 | YTD 2015 | ||||||||||||
Pro Forma Net Income | 3,580 | 2,653 | 2,936 | 9,169 | |||||||||||
Add Back: | |||||||||||||||
Taxes | 1,577 | 2,198 | 1,622 | 5,397 | |||||||||||
Interest Expense, Equity In Net Income of Affiliates and Other Income (Expense) - net, and Noncontrolling Interest | 1,231 | 1,252 | 1,272 | 3,755 | |||||||||||
Depreciation and amortization | 6,245 | 5,762 | 6,497 | 18,504 | |||||||||||
Pro Forma Consolidated EBITDA | 12,633 | 11,865 | 12,327 | 36,825 | |||||||||||
Add Back: | |||||||||||||||
Wireless merger integration costs2 | 209 | 215 | 142 | 566 | |||||||||||
Leap network decommissioning | - | 364 | 250 | 614 | |||||||||||
DIRECTV/Mexico merger integration items3 | 89 | 116 | 303 | 508 | |||||||||||
Pension termination charges | 150 | - | - | 150 | |||||||||||
Other | - | - | 35 | 35 | |||||||||||
Impairment of Venezuela subsidiary (Pro Forma)4 | - | 1,060 | - | 1,060 | |||||||||||
Integration expenses (Pro Forma)5 | (72 | ) | (90 | ) | (20 | ) | (182 | ) | |||||||
Pro Forma Adjusted Consolidated EBITDA | 13,009 | 13,530 | 13,037 | 39,576 | |||||||||||
Pro Forma Annualized Adjusted Consolidated EBITDA | 52,768 | ||||||||||||||
End-of-period current debt | 7,535 | ||||||||||||||
End-of-period long-term debt | 119,395 | ||||||||||||||
Total End-of-Period Debt | 126,930 | ||||||||||||||
Less Cash and Cash Equivalents | 6,202 | ||||||||||||||
Less Bank Securities – Certificates of Deposit & Time Deposits | 400 | ||||||||||||||
Net Debt Balance | $ | 120,328 | |||||||||||||
Pro Forma Annualized Net-Debt-to-Adjusted-EBITDA Ratio | 2.28 |
1 The pro forma financials reflect the combined results of operations of the combined company based on the historical financial statements of AT&T and DIRECTV, after giving effect to the merger and certain adjustments, and are intended to reflect the impact of the DIRECTV acquisition on AT&T. Adjustments to derive Pro Forma Net Income are consistent with the adjustments described in the "Notes to Unaudited Pro Forma Condensed Combined Financial Statements" included in the Form 8-K/A dated July 24, 2015. Calculations include the historical results for AT&T for the nine months ended September 30, 2015 and the results from DIRECTV for the period from January 1, 2015 through July 24, 2015, the date of its acquisition by AT&T. 2 Adjustments include Operations and Support expenses for domestic wireless integration costs. 3 Adjustments include DIRECTV merger and integration items and Operations and Support expenses for international wireless integration costs. Approximately $182 of DIRECTV merger costs were included in Pro Forma Net Income. 4 Adjustment includes pre-tax charge related to the remeasurement of the net monetary assets at the SIMADI rate and the associated impairment of the fixed assets of DIRECTV's Venezuelan subsidiary. 5 Adjustment to eliminate AT&T's merger costs in the pro forma net income as those costs are included in the line "DIRECTV/Mexico merger integration items" above. Net-Debt-to-EBITDA ratios are non-GAAP financial measures frequently used by investors and credit rating agencies. Management believes these measures provide relevant and useful information to investors and other users of our financial data. Net debt is calculated by subtracting cash and cash equivalents from the sum of debt maturing within one year and long-term debt. The Net-Debt-to-EBITDA ratio is calculated by dividing the Net Debt by annualized EBITDA. Annualized EBITDA is calculated by annualizing the year-to-date EBITDA. Our calculation of EBITDA, as presented, may differ from similarly titled measures reported by other companies. | |||||
Financial Data | ||||||||
AT&T Inc. | ||||||||
Non-GAAP Consolidated Reconciliation | ||||||||
Adjusted Diluted EPS | ||||||||
Unaudited | ||||||||
Three Months Ended | ||||||||
September 30, | ||||||||
2014 | 2015 | |||||||
Reported Diluted EPS | $ | 0.60 | $ | 0.50 | ||||
Adjustments: | ||||||||
Amortization of intangible assets | - | 0.13 | ||||||
Merger and integration items1 | 0.03 | 0.05 | ||||||
Leap network decommissioning | - | 0.03 | ||||||
Early debt redemption costs | 0.02 | - | ||||||
Employee separation costs | - | 0.01 | ||||||
Other | - | 0.02 | ||||||
Adjusted Diluted EPS | $ | 0.65 | $ | 0.74 | ||||
Year-over-year growth - Adjusted | 13.8 | % | ||||||
Weighted Average Common Shares Outstanding | ||||||||
with Dilution (000,000) | 5,214 | 5,943 |
1 Adjustments include DIRECTV merger and integration items, domestic and international wireless merger and integration costs, and interest expense incurred on debt issued in May 2015 to fund the cash consideration of the DIRECTV merger. | |||
Adjusted Diluted EPS is a non-GAAP financial measure calculated by excluding from operating revenues, operating expenses, interest expense and income taxes certain significant items that are non-operational or non-recurring in nature, including dispositions. Management believes that this measure provides relevant and useful information to investors and other users of our financial data in evaluating the effectiveness of our operations and underlying business trends. Adjusted Diluted EPS should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP. Our calculation of Adjusted Diluted EPS, as presented, may differ from similarly titled measures reported by other companies. | |||
Sum of components may not tie due to rounding. |
Financial Data | ||||||||||||||||||||
AT&T Inc. | ||||||||||||||||||||
Non-GAAP Segment Reconciliation | ||||||||||||||||||||
Business Solutions Segment EBITDA | ||||||||||||||||||||
Dollars in millions | ||||||||||||||||||||
Unaudited | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
9/30/14 | 12/31/14 | 3/31/15 | 6/30/15 | 9/30/15 | ||||||||||||||||
Segment Operating Revenues | ||||||||||||||||||||
Total Segment Operating Revenues | $ | 17,487 | $ | 18,729 | $ | 17,557 | $ | 17,664 | $ | 17,692 | ||||||||||
Segment Operating Income | 3,861 | 3,393 | 4,142 | 4,232 | 4,297 | |||||||||||||||
Segment Operating Income Margin | 22.1 | % | 18.1 | % | 23.6 | % | 24.0 | % | 24.3 | % | ||||||||||
Plus: Depreciation and amortization | 2,331 | 2,346 | 2,342 | 2,460 | 2,474 | |||||||||||||||
EBITDA1 | $ | 6,192 | $ | 5,739 | $ | 6,484 | $ | 6,692 | $ | 6,771 | ||||||||||
EBITDA as a % of Revenues | 35.4 | % | 30.6 | % | 36.9 | % | 37.9 | % | 38.3 | % | ||||||||||
Entertainment and Internet Services Segment EBITDA | ||||||||||||||||||||
Dollars in millions | ||||||||||||||||||||
Unaudited | ||||||||||||||||||||
Segment Operating Revenues | ||||||||||||||||||||
Total Segment Operating Revenues | $ | 5,553 | $ | 5,593 | $ | 5,660 | $ | 5,782 | $ | 10,858 | ||||||||||
Segment Operating Income | (337 | ) | (294 | ) | (264 | ) | (196 | ) | 1,019 | |||||||||||
Segment Operating Income Margin | -6.1 | % | -5.3 | % | -4.7 | % | -3.4 | % | 9.4 | % | ||||||||||
Plus: Depreciation and amortization | 1,109 | 1,077 | 1,065 | 1,065 | 1,389 | |||||||||||||||
EBITDA1 | $ | 772 | $ | 783 | $ | 801 | $ | 869 | $ | 2,408 | ||||||||||
EBITDA as a % of Revenues | 13.9 | % | 14.0 | % | 14.2 | % | 15.0 | % | 22.2 | % | ||||||||||
1 For AT&T, EBITDA is defined as operating income before depreciation and amortization. We believe EBITDA to be a relevant and useful measurement to our investors as it is part of our internal management reporting and planning processes and it is an important metric that management uses to evaluate operating performance. EBITDA does not give effect to cash used for debt service requirements and thus does not reflect available funds for distributions, reinvestment or other discretionary uses. | ||||||
Financial Data | ||||||||||||||||||||
AT&T Inc. | ||||||||||||||||||||
Non-GAAP Segment Reconciliation | ||||||||||||||||||||
Consumer Mobility Segment EBITDA | ||||||||||||||||||||
Dollars in millions | ||||||||||||||||||||
Unaudited | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
9/30/14 | 12/31/14 | 3/31/15 | 6/30/15 | 9/30/15 | ||||||||||||||||
Segment Operating Revenues | ||||||||||||||||||||
Total Segment Operating Revenues | $ | 9,208 | $ | 9,522 | $ | 8,778 | $ | 8,755 | $ | 8,784 | ||||||||||
Segment Operating Income | 2,527 | 1,823 | 2,235 | 2,618 | 2,743 | |||||||||||||||
Segment Operating Income Margin | 27.4 | % | 19.1 | % | 25.5 | % | 29.9 | % | 31.2 | % | ||||||||||
Plus: Depreciation and amortization | 950 | 981 | 1,002 | 934 | 976 | |||||||||||||||
EBITDA1 | $ | 3,477 | $ | 2,804 | $ | 3,237 | $ | 3,552 | $ | 3,719 | ||||||||||
EBITDA as a % of Revenues | 37.8 | % | 29.4 | % | 36.9 | % | 40.6 | % | 42.3 | % | ||||||||||
International Segment EBITDA | ||||||||||||||||||||
Dollars in millions | ||||||||||||||||||||
Unaudited | ||||||||||||||||||||
Segment Operating Revenues | ||||||||||||||||||||
Total Segment Operating Revenues | $ | - | $ | - | $ | 236 | $ | 491 | $ | 1,526 | ||||||||||
Segment Operating Income | - | - | (10 | ) | (131 | ) | (83 | ) | ||||||||||||
Segment Operating Income Margin | -4.2 | % | -26.7 | % | -5.4 | % | ||||||||||||||
Plus: Depreciation and amortization | - | - | 28 | 93 | 225 | |||||||||||||||
EBITDA1 | $ | - | $ | - | $ | 18 | $ | (38 | ) | $ | 142 | |||||||||
EBITDA as a % of Revenues | 7.6 | % | -7.7 | % | 9.3 | % | ||||||||||||||
1 For AT&T, EBITDA is defined as operating income before depreciation and amortization. EBITDA service margin is calculated as EBITDA divided by service revenues. EBITDA differs from Segment Operating Income (Loss), as calculated in accordance with U.S. generally accepted accounting principles (GAAP), in that it excludes depreciation and amortization. EBITDA does not give effect to cash used for debt service requirements and thus does not reflect available funds for distributions, reinvestment or other discretionary uses. EBITDA is not presented as an alternative measure of operating results or cash flows from operations, as determined in accordance with GAAP. Our calculation of EBITDA, as presented, may differ from similarly titled measures reported by other companies. | ||||||
Financial Data | ||||||||||||||||||||||||
AT&T Inc. | ||||||||||||||||||||||||
Non-GAAP Reconciliation - Supplemental | ||||||||||||||||||||||||
AT&T Mobility EBITDA | ||||||||||||||||||||||||
Dollars in millions | ||||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
9/30/13 | 9/30/14 | 12/31/14 | 3/31/15 | 6/30/15 | 9/30/15 | |||||||||||||||||||
Operating Revenues | ||||||||||||||||||||||||
Service Revenues | $ | 15,460 | $ | 15,423 | $ | 15,074 | $ | 14,812 | $ | 15,115 | $ | 15,095 | ||||||||||||
Equipment Revenues | 2,020 | 2,914 | 4,785 | 3,374 | 3,189 | 3,234 | ||||||||||||||||||
Total Operating Revenues | $ | 17,480 | $ | 18,337 | $ | 19,859 | $ | 18,186 | $ | 18,304 | $ | 18,329 | ||||||||||||
Operating Income | 4,671 | 4,745 | 3,573 | 4,710 | 5,298 | 5,418 | ||||||||||||||||||
Operating Income Margin | 26.7 | % | 25.9 | % | 18.0 | % | 25.9 | % | 28.9 | % | 29.6 | % | ||||||||||||
Plus: Depreciation and amortization | 1,828 | 1,909 | 1,959 | 2,005 | 2,031 | 2,046 | ||||||||||||||||||
EBITDA1 | $ | 6,499 | $ | 6,654 | $ | 5,532 | $ | 6,715 | $ | 7,329 | $ | 7,464 | ||||||||||||
EBITDA as a % of Service Revenues | 42.0 | % | 43.1 | % | 36.7 | % | 45.3 | % | 48.5 | % | 49.4 | % | ||||||||||||
Mexico EBITDA | ||||||||||||||||||||||||
Dollars in millions | ||||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
9/30/14 | 12/31/14 | 3/31/15 | 6/30/15 | 9/30/15 | ||||||||||||||||||||
Operating Revenues | ||||||||||||||||||||||||
Total Operating Revenues | $ | - | $ | - | $ | 236 | $ | 491 | $ | 581 | ||||||||||||||
Operating Income | - | - | (10 | ) | (131 | ) | (134 | ) | ||||||||||||||||
Operating Income Margin | -4.2 | % | -26.7 | % | -23.1 | % | ||||||||||||||||||
Plus: Depreciation and amortization | - | - | 28 | 93 | 67 | |||||||||||||||||||
EBITDA1 | $ | - | $ | - | $ | 18 | $ | (38 | ) | $ | (67 | ) | ||||||||||||
EBITDA as a % of Revenues | 7.6 | % | -7.7 | % | -11.5 | % | ||||||||||||||||||
1 For AT&T, EBITDA is defined as operating income before depreciation and amortization. EBITDA service margin is calculated as EBITDA divided by service revenues. EBITDA differs from Segment Operating Income (Loss), as calculated in accordance with U.S. generally accepted accounting principles (GAAP), in that it excludes depreciation and amortization. EBITDA does not give effect to cash used for debt service requirements and thus does not reflect available funds for distributions, reinvestment or other discretionary uses. EBITDA is not presented as an alternative measure of operating results or cash flows from operations, as determined in accordance with GAAP. Our calculation of EBITDA, as presented, may differ from similarly titled measures reported by other companies. | ||||||||