Attached files
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8-K - EARNINGS 8-K - AT&T INC. | q4earnings801_8k.htm |
Financial Data
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AT&T Inc.
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Consolidated Statements of Income
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Dollars in millions except per share amounts
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Unaudited
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Three Months Ended
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Twelve Months Ended
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12/31/2010
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12/31/2009
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% Chg
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12/31/2010
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12/31/2009
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% Chg
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Operating Revenues
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Wireless service
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$ | 13,799 | $ | 12,585 | 9.6 | % | $ | 53,510 | $ | 48,563 | 10.2 | % | ||||||||||||
Voice
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6,644 | 7,623 | -12.8 | % | 28,315 | 32,324 | -12.4 | % | ||||||||||||||||
Data
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7,072 | 6,508 | 8.7 | % | 27,479 | 25,561 | 7.5 | % | ||||||||||||||||
Directory
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926 | 1,102 | -16.0 | % | 3,935 | 4,724 | -16.7 | % | ||||||||||||||||
Other
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2,920 | 2,890 | 1.0 | % | 11,041 | 11,341 | -2.6 | % | ||||||||||||||||
Total Operating Revenues
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31,361 | 30,708 | 2.1 | % | 124,280 | 122,513 | 1.4 | % | ||||||||||||||||
Operating Expenses
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Cost of services and sales (exclusive of depreciation and
amortization shown separately below)
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13,897 | 12,973 | 7.1 | % | 52,263 | 50,571 | 3.3 | % | ||||||||||||||||
Selling, general and administrative
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10,469 | 8,205 | 27.6 | % | 33,065 | 31,427 | 5.2 | % | ||||||||||||||||
Depreciation and amortization
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4,907 | 4,966 | -1.2 | % | 19,379 | 19,515 | -0.7 | % | ||||||||||||||||
Total Operating Expenses
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29,273 | 26,144 | 12.0 | % | 104,707 | 101,513 | 3.1 | % | ||||||||||||||||
Operating Income
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2,088 | 4,564 | -54.3 | % | 19,573 | 21,000 | -6.8 | % | ||||||||||||||||
Interest Expense
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746 | 795 | -6.2 | % | 2,994 | 3,368 | -11.1 | % | ||||||||||||||||
Equity in Net Income of Affiliates
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133 | 185 | -28.1 | % | 762 | 734 | 3.8 | % | ||||||||||||||||
Other Income (Expense) - Net
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72 | 107 | -32.7 | % | 897 | 152 | - | |||||||||||||||||
Income from Continuing Operations Before Income Taxes
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1,547 | 4,061 | -61.9 | % | 18,238 | 18,518 | -1.5 | % | ||||||||||||||||
Income Tax (Benefit) Expense
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388 | 1,271 | -69.5 | % | (1,162 | ) | 6,091 | - | ||||||||||||||||
Income from Continuing Operations
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1,159 | 2,790 | -58.5 | % | 19,400 | 12,427 | 56.1 | % | ||||||||||||||||
Income from Discontinued Operations, net of tax
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2 | 14 | -85.7 | % | 779 | 20 | - | |||||||||||||||||
Net Income
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1,161 | 2,804 | -58.6 | % | 20,179 | 12,447 | 62.1 | % | ||||||||||||||||
Less: Net Income Attributable to Noncontrolling Interest
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(72 | ) | (74 | ) | 2.7 | % | (315 | ) | (309 | ) | -1.9 | % | ||||||||||||
Net Income Attributable to AT&T
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$ | 1,089 | $ | 2,730 | -60.1 | % | $ | 19,864 | $ | 12,138 | 63.7 | % | ||||||||||||
Basic Earnings Per Share from Continuing
Operations Attributable to AT&T
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$ | 0.18 | $ | 0.46 | -60.9 | % | $ | 3.23 | $ | 2.06 | 56.8 | % | ||||||||||||
Basic Earnings Per Share from Discontinued
Operations Attributable to AT&T
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- | - | - | 0.13 | - | - | ||||||||||||||||||
Basic Earnings Per Share Attributable to AT&T
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$ | 0.18 | $ | 0.46 | -60.9 | % | $ | 3.36 | $ | 2.06 | 63.1 | % | ||||||||||||
Weighted Average Common
Shares Outstanding (000,000)
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5,915 | 5,901 | 0.2 | % | 5,913 | 5,900 | 0.2 | % | ||||||||||||||||
Diluted Earnings Per Share from Continuing
Operations Attributable to AT&T
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$ | 0.18 | $ | 0.46 | -60.9 | % | $ | 3.22 | $ | 2.05 | 57.1 | % | ||||||||||||
Diluted Earnings Per Share from Discontinued
Operations Attributable to AT&T
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- | - | - | 0.13 | - | - | ||||||||||||||||||
Diluted Earnings Per Share Attributable to AT&T
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$ | 0.18 | $ | 0.46 | -60.9 | % | $ | 3.35 | $ | 2.05 | 63.4 | % | ||||||||||||
Weighted Average Common
Shares Outstanding with Dilution (000,000)
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5,941 | 5,927 | 0.2 | % | 5,938 | 5,924 | 0.2 | % | ||||||||||||||||
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
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Three Months Ended
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Twelve Months Ended
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Wireless
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12/31/2010
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12/31/2009
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% Chg
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12/31/2010
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12/31/2009
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% Chg
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Segment Operating Revenues
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Service
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$ | 13,799 | $ | 12,585 | 9.6 | % | $ | 53,510 | $ | 48,563 | 10.2 | % | ||||||||||||
Equipment
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1,382 | 1,232 | 12.2 | % | 4,990 | 4,941 | 1.0 | % | ||||||||||||||||
Total Segment Operating Revenues
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15,181 | 13,817 | 9.9 | % | 58,500 | 53,504 | 9.3 | % | ||||||||||||||||
Segment Operating Expenses
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Operations and support
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9,988 | 8,695 | 14.9 | % | 36,746 | 33,631 | 9.3 | % | ||||||||||||||||
Depreciation and amortization
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1,721 | 1,550 | 11.0 | % | 6,497 | 6,043 | 7.5 | % | ||||||||||||||||
Total Segment Operating Expenses
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11,709 | 10,245 | 14.3 | % | 43,243 | 39,674 | 9.0 | % | ||||||||||||||||
Segment Operating Income
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3,472 | 3,572 | -2.8 | % | 15,257 | 13,830 | 10.3 | % | ||||||||||||||||
Equity in Net Income (Loss) of Affiliates
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(5 | ) | 9 | - | 9 | 9 | - | |||||||||||||||||
Segment Income
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$ | 3,467 | $ | 3,581 | -3.2 | % | $ | 15,266 | $ | 13,839 | 10.3 | % | ||||||||||||
Segment Operating Income Margin
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22.9 | % | 25.9 | % | 26.1 | % | 25.8 | % | ||||||||||||||||
Wireline
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Segment Operating Revenues
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Voice
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$ | 6,644 | $ | 7,623 | -12.8 | % | $ | 28,315 | $ | 32,324 | -12.4 | % | ||||||||||||
Data
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7,072 | 6,508 | 8.7 | % | 27,479 | 25,561 | 7.5 | % | ||||||||||||||||
Other
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1,394 | 1,483 | -6.0 | % | 5,408 | 5,629 | -3.9 | % | ||||||||||||||||
Total Segment Operating Revenues
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15,110 | 15,614 | -3.2 | % | 61,202 | 63,514 | -3.6 | % | ||||||||||||||||
Segment Operating Expenses
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Operations and support
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10,055 | 10,470 | -4.0 | % | 41,008 | 42,352 | -3.2 | % | ||||||||||||||||
Depreciation and amortization
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3,092 | 3,217 | -3.9 | % | 12,371 | 12,743 | -2.9 | % | ||||||||||||||||
Total Segment Operating Expenses
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13,147 | 13,687 | -3.9 | % | 53,379 | 55,095 | -3.1 | % | ||||||||||||||||
Segment Operating Income
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1,963 | 1,927 | 1.9 | % | 7,823 | 8,419 | -7.1 | % | ||||||||||||||||
Equity in Net Income of Affiliates
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4 | - | - | 11 | 17 | -35.3 | % | |||||||||||||||||
Segment Income
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$ | 1,967 | $ | 1,927 | 2.1 | % | $ | 7,834 | $ | 8,436 | -7.1 | % | ||||||||||||
Segment Operating Income Margin
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13.0 | % | 12.3 | % | 12.8 | % | 13.3 | % | ||||||||||||||||
Advertising Solutions
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Segment Operating Revenues
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$ | 926 | $ | 1,102 | -16.0 | % | $ | 3,935 | $ | 4,724 | -16.7 | % | ||||||||||||
Segment Operating Expenses
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Operations and support
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626 | 650 | -3.7 | % | 2,583 | 2,743 | -5.8 | % | ||||||||||||||||
Depreciation and amortization
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104 | 150 | -30.7 | % | 497 | 650 | -23.5 | % | ||||||||||||||||
Total Segment Operating Expenses
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730 | 800 | -8.8 | % | 3,080 | 3,393 | -9.2 | % | ||||||||||||||||
Segment Income
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$ | 196 | $ | 302 | -35.1 | % | $ | 855 | $ | 1,331 | -35.8 | % | ||||||||||||
Segment Income Margin
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21.2 | % | 27.4 | % | 21.7 | % | 28.2 | % | ||||||||||||||||
Other
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Segment Operating Revenues
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$ | 144 | $ | 175 | -17.7 | % | $ | 643 | $ | 771 | -16.6 | % | ||||||||||||
Segment Operating Expenses
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1,166 | 1,197 | -2.6 | % | 2,484 | 3,136 | -20.8 | % | ||||||||||||||||
Segment Operating Income (Loss)
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(1,022 | ) | (1,022 | ) | - | (1,841 | ) | (2,365 | ) | 22.2 | % | |||||||||||||
Equity in Net Income of Affiliates
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134 | 176 | -23.9 | % | 742 | 708 | 4.8 | % | ||||||||||||||||
Segment Income (Loss) from Continuing Operations
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$ | (888 | ) | $ | (846 | ) | -5.0 | % | $ | (1,099 | ) | $ | (1,657 | ) | 33.7 | % |
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
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12/31/10
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12/31/09
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Unaudited
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Assets
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Current Assets
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Cash and cash equivalents
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$ | 1,437 | $ | 3,741 | ||||
Accounts receivable - net of allowances for
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doubtful accounts of $957 and $1,202
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13,610 | 14,845 | ||||||
Prepaid expenses
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1,458 | 1,562 | ||||||
Deferred income taxes
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1,170 | 1,247 | ||||||
Other current assets
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2,276 | 3,792 | ||||||
Total current assets
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19,951 | 25,187 | ||||||
Property, Plant and Equipment - Net
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103,963 | 100,286 | ||||||
Goodwill
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73,601 | 72,782 | ||||||
Licenses
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50,372 | 48,741 | ||||||
Customer Lists and Relationships - Net
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4,708 | 7,393 | ||||||
Other Intangible Assets - Net
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5,440 | 5,494 | ||||||
Investments in Equity Affiliates
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4,515 | 2,921 | ||||||
Other Assets
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6,704 | 6,275 | ||||||
Total Assets
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$ | 269,254 | $ | 269,079 | ||||
Liabilities and Stockholders' Equity
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Current Liabilities
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Debt maturing within one year
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$ | 7,196 | $ | 7,361 | ||||
Accounts payable and accrued liabilities
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20,055 | 21,260 | ||||||
Advanced billing and customer deposits
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4,086 | 4,170 | ||||||
Accrued taxes
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72 | 1,681 | ||||||
Dividends payable
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2,542 | 2,479 | ||||||
Total current liabilities
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33,951 | 36,951 | ||||||
Long-Term Debt
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58,971 | 64,720 | ||||||
Deferred Credits and Other Noncurrent Liabilities
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Deferred income taxes
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22,361 | 23,870 | ||||||
Postemployment benefit obligation
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28,803 | 27,847 | ||||||
Other noncurrent liabilities
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12,743 | 13,226 | ||||||
Total deferred credits and other noncurrent liabilities
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63,907 | 64,943 | ||||||
Stockholders' Equity
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Common stock
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6,495 | 6,495 | ||||||
Additional paid-in capital
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91,731 | 91,707 | ||||||
Retained earnings
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32,268 | 22,419 | ||||||
Treasury stock
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(21,083 | ) | (21,260 | ) | ||||
Accumulated other comprehensive income
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2,711 | 2,679 | ||||||
Noncontrolling interest
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303 | 425 | ||||||
Total stockholders' equity
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112,425 | 102,465 | ||||||
Total Liabilities and Stockholders' Equity
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$ | 269,254 | $ | 269,079 |
Financial Data
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AT&T Inc.
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Consolidated Statements of Cash Flows
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Dollars in millions, increase (decrease) in cash and cash equivalents
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Unaudited
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2010
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2009
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2008
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Operating Activities
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Net income (loss)
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$ | 20,179 | $ | 12,447 | $ | (2,364 | ) | |||||
Adjustments to reconcile net income (loss) to
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net cash provided by operating activities:
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Depreciation and amortization
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19,379 | 19,515 | 19,673 | |||||||||
Undistributed earnings from investments in equity affiliates
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(603 | ) | (419 | ) | (654 | ) | ||||||
Provision for uncollectible accounts
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1,334 | 1,762 | 1,795 | |||||||||
Deferred income tax expense (benefit) and noncurrent
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unrecognized tax benefits
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(3,280 | ) | 1,885 | (4,202 | ) | |||||||
Net (gain) loss from impairment and sale of investments
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(802 | ) | - | 517 | ||||||||
Remeasurement of pension and postretirement benefits
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2,521 | 215 | 25,150 | |||||||||
(Income) Loss from discontinued operations
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(779 | ) | (20 | ) | 2 | |||||||
Changes in operating assets and liabilities:
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Accounts receivable
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(99 | ) | (490 | ) | (1,475 | ) | ||||||
Other current assets
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717 | (617 | ) | 1,854 | ||||||||
Accounts payable and accrued liabilities
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(2,414 | ) | 943 | (4,456 | ) | |||||||
Net income attributable to noncontrolling interest
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(315 | ) | (309 | ) | (261 | ) | ||||||
Other - net
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(845 | ) | (507 | ) | (1,969 | ) | ||||||
Total adjustments
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14,814 | 21,958 | 35,974 | |||||||||
Net Cash Provided by Operating Activities
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34,993 | 34,405 | 33,610 | |||||||||
Investing Activities
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Construction and capital expenditures:
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Capital expenditures
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(19,530 | ) | (16,554 | ) | (19,631 | ) | ||||||
Interest during construction
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(772 | ) | (740 | ) | (659 | ) | ||||||
Acquisitions, net of cash acquired
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(2,906 | ) | (983 | ) | (10,972 | ) | ||||||
Dispositions
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1,830 | 287 | 1,615 | |||||||||
(Purchases) and sales of securities, net
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(100 | ) | 55 | 68 | ||||||||
Sale of other investments
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- | - | 436 | |||||||||
Other
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29 | 52 | 45 | |||||||||
Net Cash Used in Investing Activities
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(21,449 | ) | (17,883 | ) | (29,098 | ) | ||||||
Financing Activities
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Net change in short-term borrowings with
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original maturities of three months or less
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1,592 | (3,910 | ) | 2,017 | ||||||||
Issuance of long-term debt
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2,235 | 8,161 | 12,416 | |||||||||
Repayment of long-term debt
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(9,294 | ) | (8,652 | ) | (4,009 | ) | ||||||
Purchase of treasury shares
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- | - | (6,077 | ) | ||||||||
Issuance of treasury shares
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50 | 28 | 319 | |||||||||
Dividends paid
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(9,916 | ) | (9,670 | ) | (9,507 | ) | ||||||
Share-based payment excess tax benefit
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- | - | 15 | |||||||||
Other
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(515 | ) | (465 | ) | 136 | |||||||
Net Cash Used in Financing Activities
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(15,848 | ) | (14,508 | ) | (4,690 | ) | ||||||
Net increase (decrease) in cash and cash equivalents
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(2,304 | ) | 2,014 | (178 | ) | |||||||
Cash and cash equivalents beginning of year
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3,741 | 1,727 | 1,905 | |||||||||
Cash and Cash Equivalents End of Year
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$ | 1,437 | $ | 3,741 | $ | 1,727 |
Financial Data
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AT&T Inc.
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Supplementary Operating and Financial Data
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Dollars in millions except per share amounts
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Unaudited
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Three Months Ended
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Twelve Months Ended
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12/31/2010
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12/31/2009
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% Chg
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12/31/2010
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12/31/2009
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% Chg
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Wireless
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Wireless Customers (000)
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95,536 | 85,120 | 12.2 | % | ||||||||||||||||||||
Net Customer Additions (000)
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2,803 | 2,661 | 5.3 | % | 8,853 | 7,278 | 21.6 | % | ||||||||||||||||
M&A Activity, Partitioned Customers and Other Adjs. (000)
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(28 | ) | 863 | 1,563 | 833 | |||||||||||||||||||
Total Churn7
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1.32 | % | 1.42 | % |
-10 BP
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1.31 | % | 1.47 | % |
-16 BP
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Postpaid Customers (000)7
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68,041 | 64,627 | 5.3 | % | ||||||||||||||||||||
Net Postpaid Customer Additions (000)7
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400 | 841 | -52.4 | % | 2,153 | 4,199 | -48.7 | % | ||||||||||||||||
Postpaid Churn7
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1.15 | % | 1.15 | % |
0 BP
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1.09 | % | 1.13 | % |
-4 BP
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Licensed POPs (000,000)
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308 | 306 | 0.7 | % | ||||||||||||||||||||
Prepaid Customers (including tablets) (000)7
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6,524 | 5,350 | 21.9 | % | ||||||||||||||||||||
Net Prepaid Customer Additions (including tablets) (000)7
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307 | (58 | ) | 952 | (801 | ) | ||||||||||||||||||
Connected Devices Customers (000)7
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9,326 | 4,704 | 98.3 | % | ||||||||||||||||||||
Net Connected Devices Customer Additions (000)7
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1,501 | 1,394 | 7.7 | % | 4,608 | 2,077 | ||||||||||||||||||
In-Region Wireline 1
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Total Consumer Revenue Connections (000)
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Retail Consumer Voice Connections 2
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24,195 | 27,332 | -11.5 | % | ||||||||||||||||||||
Consumer Wireline Broadband Connections 3
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14,320 | 13,717 | 4.4 | % | ||||||||||||||||||||
Video Connections: 4
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Satellite Connections
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1,930 | 2,174 | -11.2 | % | ||||||||||||||||||||
U-verse Video Connections
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2,985 | 2,064 | 44.6 | % | ||||||||||||||||||||
Total Consumer Revenue Connections (000)
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43,430 | 45,287 | -4.1 | % | ||||||||||||||||||||
Net Consumer Revenue Connection Changes (000)
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(303 | ) | (372 | ) | 18.5 | % | (1,857 | ) | (1,756 | ) | -5.8 | % | ||||||||||||
Broadband and Video
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Total Broadband Connections (000) 5
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17,755 | 17,254 | 2.9 | % | ||||||||||||||||||||
Net Broadband Connection Changes (000) 5
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193 | 171 | 12.9 | % | 501 | 989 | -49.3 | % | ||||||||||||||||
Total Video Connections (000) 4
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4,917 | 4,239 | 16.0 | % | ||||||||||||||||||||
Net Video Connection Changes (000) 4
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182 | 227 | -19.8 | % | 678 | 1,004 | -32.5 | % | ||||||||||||||||
AT&T Inc.
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Construction and capital expenditures
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Capital expenditures
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$ | 6,360 | $ | 5,520 | 15.2 | % | $ | 19,530 | $ | 16,554 | 18.0 | % | ||||||||||||
Interest during construction
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$ | 195 | $ | 187 | 4.3 | % | $ | 772 | $ | 740 | 4.3 | % | ||||||||||||
Dividends Declared per Share
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$ | 0.4300 | $ | 0.4200 | 2.4 | % | $ | 1.6900 | $ | 1.6500 | 2.4 | % | ||||||||||||
End of Period Common Shares Outstanding (000,000)
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5,911 | 5,902 | 0.2 | % | ||||||||||||||||||||
Debt Ratio 6
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37.0 | % | 41.3 | % |
-430 BP
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Total Employees
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266,590 | 282,720 | -5.7 | % | ||||||||||||||||||||
1
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In-region wireline represents access lines served by AT&T's incumbent local exchange companies.
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2
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Includes consumer U-verse Voice over Internet Protocol connections of 1,680 as of December 31, 2010.
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3
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Consumer wireline broadband connections include DSL lines, U-verse High Speed Internet access and satellite broadband.
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4
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Video connections include sales under agency agreements with EchoStar and DirecTV customers and U-verse connections.
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5
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Total broadband connections include DSL lines, U-verse High Speed Internet access, satellite broadband and 3G LaptopConnect cards.
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6
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Total long-term debt plus debt maturing within one year divided by total debt plus total stockholders' equity.
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7
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Prior year amounts restated to conform to current period reporting methodology.
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Note: For the end of 4Q10, total switched access lines were 43,678, retail business switched access lines totaled 18,733, and wholesale and coin switched
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access lines totaled 2,430. These include 1,699 retail business and 95 wholesale lines that are used solely by AT&T or our subsidiaries. |