Attached files
| file | filename |
|---|---|
| 8-K - EARNINGS 8-K - AT&T INC. | earnings801_8k.htm |
|
Financial
Data
|
||||||||||||||||||||||||
|
AT&T
Inc.
|
||||||||||||||||||||||||
|
Consolidated
Statements of Income
|
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|
Dollars
in millions except per share amounts
|
||||||||||||||||||||||||
|
Unaudited
|
Three
Months Ended
|
Twelve
Months Ended
|
||||||||||||||||||||||
|
12/31/2009
|
12/31/2008
|
%
Chg
|
12/31/2009
|
12/31/2008
|
%
Chg
|
|||||||||||||||||||
|
Operating
Revenues
|
||||||||||||||||||||||||
|
Wireless
service
|
$ | 12,585 | $ | 11,523 | 9.2 | % | $ | 48,563 | $ | 44,249 | 9.7 | % | ||||||||||||
|
Voice
|
7,612 | 8,796 | -13.5 | % | 32,314 | 37,321 | -13.4 | % | ||||||||||||||||
|
Data
|
6,473 | 6,203 | 4.4 | % | 25,454 | 24,373 | 4.4 | % | ||||||||||||||||
|
Directory
|
1,102 | 1,302 | -15.4 | % | 4,724 | 5,416 | -12.8 | % | ||||||||||||||||
|
Other
|
3,086 | 3,252 | -5.1 | % | 11,963 | 12,669 | -5.6 | % | ||||||||||||||||
|
Total
Operating Revenues
|
30,858 | 31,076 | -0.7 | % | 123,018 | 124,028 | -0.8 | % | ||||||||||||||||
|
Operating
Expenses
|
||||||||||||||||||||||||
|
Cost
of services and sales (exclusive of
|
||||||||||||||||||||||||
|
depreciation
and amortization shown separately below)
|
12,800 | 12,642 | 1.2 | % | 50,405 | 49,556 | 1.7 | % | ||||||||||||||||
|
Selling,
general and administrative
|
8,182 | 8,492 | -3.7 | % | 31,407 | 31,526 | -0.4 | % | ||||||||||||||||
|
Depreciation
and amortization
|
5,015 | 5,044 | -0.6 | % | 19,714 | 19,883 | -0.8 | % | ||||||||||||||||
|
Total
Operating Expenses
|
25,997 | 26,178 | -0.7 | % | 101,526 | 100,965 | 0.6 | % | ||||||||||||||||
|
Operating
Income
|
4,861 | 4,898 | -0.8 | % | 21,492 | 23,063 | -6.8 | % | ||||||||||||||||
|
Interest
Expense
|
798 | 813 | -1.8 | % | 3,379 | 3,390 | -0.3 | % | ||||||||||||||||
|
Equity
in Net Income of Affiliates
|
185 | 107 | 72.9 | % | 734 | 819 | -10.4 | % | ||||||||||||||||
|
Other
Income (Expense) - Net
|
109 | (425 | ) | - | 152 | (328 | ) | - | ||||||||||||||||
|
Income
Before Income Taxes
|
4,357 | 3,767 | 15.7 | % | 18,999 | 20,164 | -5.8 | % | ||||||||||||||||
|
Income
Taxes
|
1,266 | 1,290 | -1.9 | % | 6,156 | 7,036 | -12.5 | % | ||||||||||||||||
|
Net
Income
|
3,091 | 2,477 | 24.8 | % | 12,843 | 13,128 | -2.2 | % | ||||||||||||||||
|
Less:
Net Income Attributable to Noncontrolling Interest
|
(72 | ) | (73 | ) | 1.4 | % | (308 | ) | (261 | ) | -18.0 | % | ||||||||||||
|
Net
Income Attributable to AT&T
|
$ | 3,019 | $ | 2,404 | 25.6 | % | $ | 12,535 | $ | 12,867 | -2.6 | % | ||||||||||||
|
Basic
Earnings Per Share Attributable to AT&T
|
$ | 0.51 | $ | 0.41 | 24.4 | % | $ | 2.12 | $ | 2.17 | -2.3 | % | ||||||||||||
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Weighted
Average Common
|
||||||||||||||||||||||||
|
Shares
Outstanding (000,000)
|
5,901 | 5,893 | 0.1 | % | 5,900 | 5,927 | -0.5 | % | ||||||||||||||||
|
Diluted
Earnings Per Share Attributable to AT&T
|
$ | 0.51 | $ | 0.41 | 24.4 | % | $ | 2.12 | $ | 2.16 | -1.9 | % | ||||||||||||
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Weighted
Average Common
|
||||||||||||||||||||||||
|
Shares
Outstanding with Dilution (000,000)
|
5,927 | 5,920 | 0.1 | % | 5,924 | 5,958 | -0.6 | % | ||||||||||||||||
|
Financial
Data
|
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|
AT&T
Inc.
|
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|
Statements
of Segment Income
|
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Dollars
in millions
|
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|
Unaudited
|
||||||||||||||||||||||||
|
Three
Months Ended
|
Twelve
Months Ended
|
|||||||||||||||||||||||
|
Wireless
|
12/31/2009
|
12/31/2008
|
%
Chg
|
12/31/2009
|
12/31/2008
|
%
Chg
|
||||||||||||||||||
|
Segment
Operating Revenues
|
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|
Service
|
$ | 12,607 | $ | 11,541 | 9.2 | % | $ | 48,657 | $ | 44,410 | 9.6 | % | ||||||||||||
|
Equipment
|
1,231 | 1,318 | -6.6 | % | 4,940 | 4,925 | 0.3 | % | ||||||||||||||||
|
Total
Segment Operating Revenues
|
13,838 | 12,859 | 7.6 | % | 53,597 | 49,335 | 8.6 | % | ||||||||||||||||
|
Segment
Operating Expenses
|
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|
Operations
and support
|
8,941 | 8,731 | 2.4 | % | 34,561 | 32,481 | 6.4 | % | ||||||||||||||||
|
Depreciation
and amortization
|
1,477 | 1,443 | 2.4 | % | 5,765 | 5,770 | -0.1 | % | ||||||||||||||||
|
Total
Segment Operating Expenses
|
10,418 | 10,174 | 2.4 | % | 40,326 | 38,251 | 5.4 | % | ||||||||||||||||
|
Segment
Operating Income
|
3,420 | 2,685 | 27.4 | % | 13,271 | 11,084 | 19.7 | % | ||||||||||||||||
|
Equity
in Net Income of Affiliates
|
9 | 1 | - | 9 | 6 | 50.0 | % | |||||||||||||||||
|
Segment
Income
|
$ | 3,429 | $ | 2,686 | 27.7 | % | $ | 13,280 | $ | 11,090 | 19.7 | % | ||||||||||||
|
Segment
Operating Income Margin
|
24.7 | % | 20.9 | % | 24.8 | % | 22.5 | % | ||||||||||||||||
|
Wireline
|
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|
Segment
Operating Revenues
|
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|
Voice
|
$ | 7,793 | $ | 9,007 | -13.5 | % | $ | 33,082 | $ | 38,198 | -13.4 | % | ||||||||||||
|
Data
|
6,823 | 6,460 | 5.6 | % | 26,723 | 25,353 | 5.4 | % | ||||||||||||||||
|
Other
|
1,546 | 1,606 | -3.7 | % | 5,865 | 6,304 | -7.0 | % | ||||||||||||||||
|
Total
Segment Operating Revenues
|
16,162 | 17,073 | -5.3 | % | 65,670 | 69,855 | -6.0 | % | ||||||||||||||||
|
Segment
Operating Expenses
|
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|
Operations
and support
|
10,987 | 11,299 | -2.8 | % | 44,646 | 45,440 | -1.7 | % | ||||||||||||||||
|
Depreciation
and amortization
|
3,306 | 3,392 | -2.5 | % | 13,093 | 13,206 | -0.9 | % | ||||||||||||||||
|
Total
Segment Operating Expenses
|
14,293 | 14,691 | -2.7 | % | 57,739 | 58,646 | -1.5 | % | ||||||||||||||||
|
Segment
Operating Income
|
1,869 | 2,382 | -21.5 | % | 7,931 | 11,209 | -29.2 | % | ||||||||||||||||
|
Equity
in Net Income of Affiliates
|
1 | 1 | 0.0 | % | 18 | 19 | -5.3 | % | ||||||||||||||||
|
Segment
Income
|
$ | 1,870 | $ | 2,383 | -21.5 | % | $ | 7,949 | $ | 11,228 | -29.2 | % | ||||||||||||
|
Segment
Operating Income Margin
|
11.6 | % | 14.0 | % | 12.1 | % | 16.0 | % | ||||||||||||||||
|
Advertising
Solutions
|
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|
Segment
Operating Revenues
|
$ | 1,129 | $ | 1,328 | -15.0 | % | $ | 4,809 | $ | 5,502 | -12.6 | % | ||||||||||||
|
Segment
Operating Expenses
|
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|
Operations
and support
|
701 | 705 | -0.6 | % | 2,922 | 2,998 | -2.5 | % | ||||||||||||||||
|
Depreciation
and amortization
|
149 | 180 | -17.2 | % | 649 | 789 | -17.7 | % | ||||||||||||||||
|
Total
Segment Operating Expenses
|
850 | 885 | -4.0 | % | 3,571 | 3,787 | -5.7 | % | ||||||||||||||||
|
Segment
Income
|
$ | 279 | $ | 443 | -37.0 | % | $ | 1,238 | $ | 1,715 | -27.8 | % | ||||||||||||
|
Segment
Income Margin
|
24.7 | % | 33.4 | % | 25.7 | % | 31.2 | % | ||||||||||||||||
|
Other
|
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|
Segment
Operating Revenues
|
$ | 443 | $ | 485 | -8.7 | % | $ | 1,731 | $ | 2,042 | -15.2 | % | ||||||||||||
|
Segment
Operating Expenses
|
1,150 | 1,096 | 4.9 | % | 2,678 | 2,986 | -10.3 | % | ||||||||||||||||
|
Segment
Operating Income (Loss)
|
(707 | ) | (611 | ) | -15.7 | % | (947 | ) | (944 | ) | -0.3 | % | ||||||||||||
|
Equity
in Net Income of Affiliates
|
175 | 105 | 66.7 | % | 706 | 794 | -11.1 | % | ||||||||||||||||
|
Segment
Income(Loss)
|
$ | (532 | ) | $ | (506 | ) | -5.1 | % | $ | (241 | ) | $ | (150 | ) | -60.7 | % | ||||||||
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Financial
Data
|
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|
AT&T
Inc.
|
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Consolidated
Balance Sheets
|
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|
Dollars
in millions except per share amounts
|
||||||||
|
12/31/09
|
12/31/08
|
|||||||
|
Unaudited
|
||||||||
|
Assets
|
||||||||
|
Current
Assets
|
||||||||
|
Cash
and cash equivalents
|
$ | 3,802 | $ | 1,792 | ||||
|
Accounts
receivable - net of allowances for
|
||||||||
|
doubtful
accounts of $1,205 and $1,270
|
14,978 | 16,047 | ||||||
|
Prepaid
expenses
|
1,572 | 1,538 | ||||||
|
Deferred
income taxes
|
1,274 | 1,014 | ||||||
|
Other
current assets
|
2,708 | 2,165 | ||||||
|
Total
current assets
|
24,334 | 22,556 | ||||||
|
Property,
Plant and Equipment - Net
|
100,093 | 99,088 | ||||||
|
Goodwill
|
73,259 | 71,829 | ||||||
|
Licenses
|
48,759 | 47,306 | ||||||
|
Customer
Lists and Relationships - Net
|
7,420 | 10,582 | ||||||
|
Other
Intangible Assets - Net
|
5,644 | 5,824 | ||||||
|
Investments
in Equity Affiliates
|
2,921 | 2,332 | ||||||
|
Other
Assets
|
6,322 | 5,728 | ||||||
|
Total
Assets
|
$ | 268,752 | $ | 265,245 | ||||
|
Liabilities
and Stockholders' Equity
|
||||||||
|
Current
Liabilities
|
||||||||
|
Debt
maturing within one year
|
$ | 7,361 | $ | 14,119 | ||||
|
Accounts
payable and accrued liabilities
|
20,999 | 20,032 | ||||||
|
Advanced
billing and customer deposits
|
4,170 | 3,849 | ||||||
|
Accrued
taxes
|
1,696 | 1,874 | ||||||
|
Dividends
payable
|
2,479 | 2,416 | ||||||
|
Total
current liabilities
|
36,705 | 42,290 | ||||||
|
Long-Term
Debt
|
64,720 | 60,872 | ||||||
|
Deferred
Credits and Other Noncurrent Liabilities
|
||||||||
|
Deferred
income taxes
|
23,803 | 19,196 | ||||||
|
Postemployment
benefit obligation
|
27,849 | 31,930 | ||||||
|
Other
noncurrent liabilities
|
13,350 | 14,207 | ||||||
|
Total
deferred credits and other noncurrent liabilities
|
65,002 | 65,333 | ||||||
|
Stockholders'
Equity
|
||||||||
|
Common
shares issued ($1 par value)
|
6,495 | 6,495 | ||||||
|
Additional
paid-in-capital
|
91,707 | 91,728 | ||||||
|
Retained
earnings
|
39,366 | 36,591 | ||||||
|
Treasury
shares (at cost)
|
(21,260 | ) | (21,410 | ) | ||||
|
Accumulated
other comprehensive loss
|
(14,408 | ) | (17,057 | ) | ||||
|
Noncontrolling
interest
|
425 | 403 | ||||||
|
Total
stockholders' equity
|
102,325 | 96,750 | ||||||
|
Total
Liabilities and Stockholders' Equity
|
$ | 268,752 | $ | 265,245 | ||||
|
Financial
Data
|
||||||||||||
|
AT&T
Inc.
|
||||||||||||
|
Consolidated
Statements of Cash Flows
|
||||||||||||
|
Dollars
in millions, increase (decrease) in cash and cash
equivalents
|
||||||||||||
|
unaudited
|
|
|||||||||||
|
2009
|
2008
|
2007
|
||||||||||
|
Operating
Activities
|
||||||||||||
|
Net
income
|
$ | 12,843 | $ | 13,128 | $ | 12,147 | ||||||
|
Adjustments
to reconcile net income to
|
||||||||||||
|
net
cash provided by operating activities:
|
||||||||||||
|
Depreciation
and amortization
|
19,714 | 19,883 | 21,577 | |||||||||
|
Undistributed
earnings from investments in equity affiliates
|
(419 | ) | (654 | ) | (297 | ) | ||||||
|
Provision
for uncollectible accounts
|
1,763 | 1,796 | 1,617 | |||||||||
|
Deferred
income tax expense (benefit)
|
2,104 | 5,889 | (240 | ) | ||||||||
|
Net
(gain) loss from impairment and sale of investments
|
- | 517 | (11 | ) | ||||||||
|
Gain
on license exchange
|
- | - | (409 | ) | ||||||||
|
Changes
in operating assets and liabilities:
|
||||||||||||
|
Accounts
receivable
|
(454 | ) | (1,421 | ) | (1,491 | ) | ||||||
|
Other
current assets
|
(355 | ) | 827 | (1,020 | ) | |||||||
|
Accounts
payable and accrued liabilities
|
2,372 | (5,563 | ) | 672 | ||||||||
|
Share-based
payment excess tax benefit
|
- | (15 | ) | (173 | ) | |||||||
|
Net
income attributable to noncontrolling interest
|
(308 | ) | (261 | ) | (196 | ) | ||||||
|
Other
- net
|
(2,815 | ) | (470 | ) | 2,066 | |||||||
|
Total
adjustments
|
21,602 | 20,528 | 22,095 | |||||||||
|
Net
Cash Provided by Operating Activities
|
34,445 | 33,656 | 34,242 | |||||||||
|
Investing
Activities
|
||||||||||||
|
Construction
and capital expenditures
|
||||||||||||
|
Capital
expenditures
|
(16,595 | ) | (19,676 | ) | (17,717 | ) | ||||||
|
Interest
during construction
|
(740 | ) | (659 | ) | (171 | ) | ||||||
|
Acquisitions,
net of cash acquired
|
(983 | ) | (10,972 | ) | (2,873 | ) | ||||||
|
Dispositions
|
287 | 1,615 | 1,594 | |||||||||
|
Sales
of securities, net of investments
|
55 | 68 | 455 | |||||||||
|
Sale
of other investments
|
- | 436 | - | |||||||||
|
Other
|
51 | 45 | 36 | |||||||||
|
Net
Cash Used in Investing Activities
|
(17,925 | ) | (29,143 | ) | (18,676 | ) | ||||||
|
Financing
Activities
|
||||||||||||
|
Net
change in short-term borrowings with
|
||||||||||||
|
original
maturities of three months or less
|
(3,910 | ) | 2,017 | (3,411 | ) | |||||||
|
Issuance
of long-term debt
|
8,161 | 12,416 | 11,367 | |||||||||
|
Repayment
of long-term debt
|
(8,654 | ) | (4,010 | ) | (6,772 | ) | ||||||
|
Purchase
of treasury shares
|
- | (6,077 | ) | (10,390 | ) | |||||||
|
Issuance
of treasury shares
|
28 | 319 | 1,986 | |||||||||
|
Dividends
paid
|
(9,670 | ) | (9,507 | ) | (8,743 | ) | ||||||
|
Share-based
payment excess tax benefit
|
- | 15 | 173 | |||||||||
|
Other
|
(465 | ) | 136 | (224 | ) | |||||||
|
Net
Cash Used in Financing Activities
|
(14,510 | ) | (4,691 | ) | (16,014 | ) | ||||||
|
Net
increase (decrease) in cash and cash equivalents
|
2,010 | (178 | ) | (448 | ) | |||||||
|
Cash
and cash equivalents beginning of year
|
1,792 | 1,970 | 2,418 | |||||||||
|
Cash
and Cash Equivalents End of Period
|
$ | 3,802 | $ | 1,792 | $ | 1,970 | ||||||
|
Financial
Data
|
|
|
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|
|
|
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|
AT&T
Inc.
|
||||||||||||||||||||||||
|
Supplementary
Operating and Financial Data
|
||||||||||||||||||||||||
|
Dollars
in millions except per share amounts
|
||||||||||||||||||||||||
|
Unaudited
|
Three
Months Ended
|
Twelve
Months Ended
|
||||||||||||||||||||||
|
12/31/2009
|
12/31/2008
|
%
Chg
|
12/31/2009
|
12/31/2008
|
%
Chg
|
|||||||||||||||||||
|
Wireless
|
||||||||||||||||||||||||
|
Wireless
Customers (000)
|
85,120 | 77,009 | 10.5 | % | ||||||||||||||||||||
|
Net
Customer Additions (000)
|
2,661 | 2,095 | 27.0 | % | 7,278 | 6,699 | 8.6 | % | ||||||||||||||||
|
M&A
Activity, Partitioned Customers and Other Adjs. (000)1
|
863 | 43 | 833 | 258 | ||||||||||||||||||||
|
Postpaid
Customers (000)
|
65,146 | 60,098 | 8.4 | % | ||||||||||||||||||||
|
Net
Postpaid Customer Additions (000)
|
910 | 1,342 | -32.2 | % | 4,323 | 4,634 | -6.7 | % | ||||||||||||||||
|
Postpaid
Churn
|
1.19 | % | 1.20 | % |
-1
BP
|
1.16 | % | 1.19 | % |
-3
BP
|
||||||||||||||
|
Licensed
POPs (000,000)
|
306 | 304 | 0.7 | % | ||||||||||||||||||||
|
In-Region
Wireline 2
|
||||||||||||||||||||||||
|
Total Consumer Revenue Connections
(000)
|
||||||||||||||||||||||||
|
Retail
Consumer Voice Connections 3
|
24,562 | 27,479 | -10.6 | % | ||||||||||||||||||||
|
Retail
Consumer Additional Voice Connections 3
|
2,770 | 3,359 | -17.5 | % | ||||||||||||||||||||
|
Consumer
Wired Broadband Connections 4
|
13,717 | 12,970 | 5.8 | % | ||||||||||||||||||||
|
Video
Connections: 5
|
||||||||||||||||||||||||
|
Satellite
Connections
|
2,174 | 2,190 | -0.7 | % | ||||||||||||||||||||
|
U-verse
Video Connections
|
2,064 | 1,045 | 97.5 | % | ||||||||||||||||||||
|
Total
Consumer Revenue Connections (000)
|
45,287 | 47,043 | -3.7 | % | ||||||||||||||||||||
|
Net
Consumer Revenue Connection Changes (000)
|
(372 | ) | (504 | ) | 26.2 | % | (1,756 | ) | (2,395 | ) | 26.7 | % | ||||||||||||
|
Broadband
and Video
|
||||||||||||||||||||||||
|
Total
Broadband Connections (000) 6
|
17,254 | 16,265 | 6.1 | % | ||||||||||||||||||||
|
Net
Broadband Connection Changes (000) 6
|
171 | 300 | -43.0 | % | 989 | 1,463 | -32.4 | % | ||||||||||||||||
|
Total
Video Connections (000) 5
|
4,239 | 3,235 | 31.0 | % | ||||||||||||||||||||
|
Net
Video Connection Changes (000) 5
|
227 | 272 | -16.5 | % | 1,004 | 888 | 13.1 | % | ||||||||||||||||
|
AT&T
Inc.
|
||||||||||||||||||||||||
|
Construction
and capital expenditures
|
||||||||||||||||||||||||
|
Capital
expenditures
|
$ | 5,529 | $ | 5,288 | 4.6 | % | $ | 16,595 | $ | 19,676 | -15.7 | % | ||||||||||||
|
Interest
during construction
|
$ | 187 | $ | 204 | -8.3 | % | $ | 740 | $ | 659 | 12.3 | % | ||||||||||||
|
Dividends
Declared per Share
|
$ | 0.4200 | $ | 0.4100 | 2.4 | % | $ | 1.6500 | $ | 1.6100 | 2.5 | % | ||||||||||||
|
End
of Period Common Shares Outstanding (000,000)
|
5,902 | 5,893 | 0.2 | % | ||||||||||||||||||||
|
Debt
Ratio 7,8
|
41.3 | % | 43.7 | % |
-240
BP
|
|||||||||||||||||||
|
Total
Employees
|
282,720 | 302,660 | -6.6 | % | ||||||||||||||||||||
|
1
|
4Q09 M&A
Activity reflects the acquisition of Centennial Communications, which was
completed in November 2009.
|
|
2
|
In-region wireline represents access lines served by AT&T's incumbent
local exchange companies.
|
|
3
|
Includes consumer U-verse Voice over IP connections.
|
|
4
|
Consumer Wired Broadband Connections include DSL lines, U-verse High Speed Internet access and satellite broadband. |
|
5
|
Video connections include sales under agency agreements with EchoStar and
DirecTV customers and U-verse connections.
|
|
6
|
Total broadband connections include DSL lines, U-verse High Speed Internet
access, satellite broadband and 3G LaptopConnect cards.
|
| 7 | Total long-term debt plus debt maturing within one year divided by total debt plus total stockholders' equity. |
|
8
|
Prior year amounts restated to conform to current period reporting
methodology.
|
|
Note:
For the end of year 2009, total switched access lines were 49,392, retail
business switched access lines totaled 20,106 and wholesale and coin
switched access lines totaled
2,908.
|
|