Attached files
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8-K - AT&T INC. 2ND QRT 2011 EARNINGS RELEASE 8-K - AT&T INC. | earnings801_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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Six Months Ended
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6/30/2011
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6/30/2010
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% Chg
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6/30/2011
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6/30/2010
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% Chg
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Operating Revenues
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Wireless service
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$ | 14,157 | $ | 13,186 | 7.4 | % | $ | 28,118 | $ | 26,036 | 8.0 | % | ||||||||||
Data
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7,356 | 6,866 | 7.1 | % | 14,536 | 13,517 | 7.5 | % | ||||||||||||||
Voice
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6,342 | 7,224 | -12.2 | % | 12,893 | 14,707 | -12.3 | % | ||||||||||||||
Directory
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841 | 1,007 | -16.5 | % | 1,709 | 2,048 | -16.6 | % | ||||||||||||||
Other
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2,799 | 2,525 | 10.9 | % | 5,486 | 5,030 | 9.1 | % | ||||||||||||||
Total Operating Revenues
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31,495 | 30,808 | 2.2 | % | 62,742 | 61,338 | 2.3 | % | ||||||||||||||
Operating Expenses
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Cost of services and sales (exclusive of depreciation and
amortization shown separately below)
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13,332 | 12,452 | 7.1 | % | 26,735 | 24,835 | 7.7 | % | ||||||||||||||
Selling, general and administrative
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7,396 | 7,454 | -0.8 | % | 14,848 | 14,850 | - | |||||||||||||||
Depreciation and amortization
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4,602 | 4,819 | -4.5 | % | 9,186 | 9,599 | -4.3 | % | ||||||||||||||
Total Operating Expenses
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25,330 | 24,725 | 2.4 | % | 50,769 | 49,284 | 3.0 | % | ||||||||||||||
Operating Income
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6,165 | 6,083 | 1.3 | % | 11,973 | 12,054 | -0.7 | % | ||||||||||||||
Interest Expense
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848 | 754 | 12.5 | % | 1,694 | 1,519 | 11.5 | % | ||||||||||||||
Equity in Net Income of Affiliates
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207 | 195 | 6.2 | % | 456 | 412 | 10.7 | % | ||||||||||||||
Other Income (Expense) - Net
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27 | 723 | -96.3 | % | 86 | 701 | -87.7 | % | ||||||||||||||
Income from Continuing Operations Before Income Taxes
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5,551 | 6,247 | -11.1 | % | 10,821 | 11,648 | -7.1 | % | ||||||||||||||
Income Tax Expense
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1,893 | 2,160 | -12.4 | % | 3,695 | 5,023 | -26.4 | % | ||||||||||||||
Income from Continuing Operations
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3,658 | 4,087 | -10.5 | % | 7,126 | 6,625 | 7.6 | % | ||||||||||||||
Loss from Discontinued Operations, net of tax
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- | (5 | ) | - | - | (3 | ) | - | ||||||||||||||
Net Income
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3,658 | 4,082 | -10.4 | % | 7,126 | 6,622 | 7.6 | % | ||||||||||||||
Less: Net Income Attributable to Noncontrolling Interest
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(67 | ) | (79 | ) | 15.2 | % | (127 | ) | (166 | ) | 23.5 | % | ||||||||||
Net Income Attributable to AT&T
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$ | 3,591 | $ | 4,003 | -10.3 | % | $ | 6,999 | $ | 6,456 | 8.4 | % | ||||||||||
Basic Earnings Per Share from Continuing
Operations Attributable to AT&T
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$ | 0.60 | $ | 0.68 | -11.8 | % | $ | 1.18 | $ | 1.09 | 8.3 | % | ||||||||||
Basic Earnings Per Share from Discontinued
Operations Attributable to AT&T
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- | - | - | - | - | - | ||||||||||||||||
Basic Earnings Per Share Attributable to AT&T
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$ | 0.60 | $ | 0.68 | -11.8 | % | $ | 1.18 | $ | 1.09 | 8.3 | % | ||||||||||
Weighted Average Common
Shares Outstanding (000,000)
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5,932 | 5,909 | 0.4 | % | 5,929 | 5,907 | 0.4 | % | ||||||||||||||
Diluted Earnings Per Share from Continuing
Operations Attributable to AT&T
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$ | 0.60 | $ | 0.67 | -10.4 | % | $ | 1.18 | $ | 1.09 | 8.3 | % | ||||||||||
Diluted Earnings Per Share from Discontinued
Operations Attributable to AT&T
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- | - | - | - | - | - | ||||||||||||||||
Diluted Earnings Per Share Attributable to AT&T
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$ | 0.60 | $ | 0.67 | -10.4 | % | $ | 1.18 | $ | 1.09 | 8.3 | % | ||||||||||
Weighted Average Common
Shares Outstanding with Dilution (000,000)
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5,953 | 5,937 | 0.3 | % | 5,948 | 5,936 | 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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Six Months Ended
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Wireless
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6/30/2011
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6/30/2010
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% Chg
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6/30/2011
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6/30/2010
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% Chg
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Segment Operating Revenues
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Service
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$ | 14,157 | $ | 13,186 | 7.4 | % | $ | 28,118 | $ | 26,036 | 8.0 | % | ||||||||||||
Equipment
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1,445 | 1,056 | 36.8 | % | 2,793 | 2,103 | 32.8 | % | ||||||||||||||||
Total Segment Operating Revenues
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15,602 | 14,242 | 9.5 | % | 30,911 | 28,139 | 9.9 | % | ||||||||||||||||
Segment Operating Expenses
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Operations and support
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9,782 | 8,553 | 14.4 | % | 19,640 | 16,726 | 17.4 | % | ||||||||||||||||
Depreciation and amortization
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1,613 | 1,578 | 2.2 | % | 3,118 | 3,136 | -0.6 | % | ||||||||||||||||
Total Segment Operating Expenses
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11,395 | 10,131 | 12.5 | % | 22,758 | 19,862 | 14.6 | % | ||||||||||||||||
Segment Operating Income
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4,207 | 4,111 | 2.3 | % | 8,153 | 8,277 | -1.5 | % | ||||||||||||||||
Equity in Net Income (Loss) of Affiliates
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(8 | ) | 8 | - | (12 | ) | 20 | - | ||||||||||||||||
Segment Income
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$ | 4,199 | $ | 4,119 | 1.9 | % | $ | 8,141 | $ | 8,297 | -1.9 | % | ||||||||||||
Segment Operating Income Margin
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27.0 | % | 28.9 | % | 26.4 | % | 29.4 | % | ||||||||||||||||
Wireline
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Segment Operating Revenues
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Data
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$ | 7,356 | $ | 6,866 | 7.1 | % | $ | 14,536 | $ | 13,517 | 7.5 | % | ||||||||||||
Voice
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6,342 | 7,224 | -12.2 | % | 12,893 | 14,707 | -12.3 | % | ||||||||||||||||
Other
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1,237 | 1,332 | -7.1 | % | 2,456 | 2,644 | -7.1 | % | ||||||||||||||||
Total Segment Operating Revenues
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14,935 | 15,422 | -3.2 | % | 29,885 | 30,868 | -3.2 | % | ||||||||||||||||
Segment Operating Expenses
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Operations and support
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10,104 | 10,289 | -1.8 | % | 20,370 | 20,801 | -2.1 | % | ||||||||||||||||
Depreciation and amortization
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2,876 | 3,105 | -7.4 | % | 5,834 | 6,181 | -5.6 | % | ||||||||||||||||
Total Segment Operating Expenses
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12,980 | 13,394 | -3.1 | % | 26,204 | 26,982 | -2.9 | % | ||||||||||||||||
Segment Operating Income
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1,955 | 2,028 | -3.6 | % | 3,681 | 3,886 | -5.3 | % | ||||||||||||||||
Equity in Net Income of Affiliates
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- | - | - | - | 5 | - | ||||||||||||||||||
Segment Income
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$ | 1,955 | $ | 2,028 | -3.6 | % | $ | 3,681 | $ | 3,891 | -5.4 | % | ||||||||||||
Segment Operating Income Margin
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13.1 | % | 13.2 | % | 12.3 | % | 12.6 | % | ||||||||||||||||
Advertising Solutions
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Segment Operating Revenues
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$ | 841 | $ | 1,007 | -16.5 | % | $ | 1,709 | $ | 2,048 | -16.6 | % | ||||||||||||
Segment Operating Expenses
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Operations and support
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580 | 662 | -12.4 | % | 1,153 | 1,326 | -13.0 | % | ||||||||||||||||
Depreciation and amortization
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102 | 132 | -22.7 | % | 207 | 270 | -23.3 | % | ||||||||||||||||
Total Segment Operating Expenses
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682 | 794 | -14.1 | % | 1,360 | 1,596 | -14.8 | % | ||||||||||||||||
Segment Income
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$ | 159 | $ | 213 | -25.4 | % | $ | 349 | $ | 452 | -22.8 | % | ||||||||||||
Segment Income Margin
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18.9 | % | 21.2 | % | 20.4 | % | 22.1 | % | ||||||||||||||||
Other
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Segment Operating Revenues
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$ | 117 | $ | 137 | -14.6 | % | $ | 237 | $ | 283 | -16.3 | % | ||||||||||||
Segment Operating Expenses
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273 | 406 | -32.8 | % | 447 | 844 | -47.0 | % | ||||||||||||||||
Segment Operating Loss
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(156 | ) | (269 | ) | 42.0 | % | (210 | ) | (561 | ) | 62.6 | % | ||||||||||||
Equity in Net Income of Affiliates
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215 | 187 | 15.0 | % | 468 | 387 | 20.9 | % | ||||||||||||||||
Segment Income (Loss) from Continuing Operations
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$ | 59 | $ | (82 | ) | - | $ | 258 | $ | (174 | ) | - |
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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6/30/11
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12/31/10
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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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$ | 3,831 | $ | 1,437 | ||||
Accounts receivable - net of allowances for
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doubtful accounts of $908 and $957
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13,608 | 13,610 | ||||||
Prepaid expenses
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1,563 | 1,458 | ||||||
Deferred income taxes
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1,180 | 1,170 | ||||||
Other current assets
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2,057 | 2,276 | ||||||
Total current assets
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22,239 | 19,951 | ||||||
Property, Plant and Equipment - Net
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104,606 | 103,196 | ||||||
Goodwill
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73,591 | 73,601 | ||||||
Licenses
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50,403 | 50,372 | ||||||
Customer Lists and Relationships - Net
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3,643 | 4,708 | ||||||
Other Intangible Assets - Net
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5,407 | 5,440 | ||||||
Investments in Equity Affiliates
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5,207 | 4,515 | ||||||
Other Assets
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6,918 | 6,705 | ||||||
Total Assets
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$ | 272,014 | $ | 268,488 | ||||
Liabilities and Stockholders' Equity
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Current Liabilities
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Debt maturing within one year
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$ | 7,910 | $ | 7,196 | ||||
Accounts payable and accrued liabilities
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18,145 | 20,055 | ||||||
Advanced billing and customer deposits
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3,804 | 4,086 | ||||||
Accrued taxes
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1,130 | 72 | ||||||
Dividends payable
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2,548 | 2,542 | ||||||
Total current liabilities
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33,537 | 33,951 | ||||||
Long-Term Debt
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58,663 | 58,971 | ||||||
Deferred Credits and Other Noncurrent Liabilities
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Deferred income taxes
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25,065 | 22,070 | ||||||
Postemployment benefit obligation
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28,350 | 28,803 | ||||||
Other noncurrent liabilities
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12,290 | 12,743 | ||||||
Total deferred credits and other noncurrent liabilities
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65,705 | 63,616 | ||||||
Stockholders' Equity
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Common stock
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6,495 | 6,495 | ||||||
Additional paid-in capital
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91,687 | 91,731 | ||||||
Retained earnings
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33,687 | 31,792 | ||||||
Treasury stock
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(20,786 | ) | (21,083 | ) | ||||
Accumulated other comprehensive income
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2,720 | 2,712 | ||||||
Noncontrolling interest
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306 | 303 | ||||||
Total stockholders' equity
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114,109 | 111,950 | ||||||
Total Liabilities and Stockholders' Equity
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$ | 272,014 | $ | 268,488 |
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
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Unaudited
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Six months ended June 30,
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2011
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2010
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Operating Activities
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Net income
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$ | 7,126 | $ | 6,622 | ||||
Adjustments to reconcile net income to
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net cash provided by operating activities:
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Depreciation and amortization
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9,186 | 9,599 | ||||||
Undistributed earnings from investments in equity affiliates
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(417 | ) | (378 | ) | ||||
Provision for uncollectible accounts
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523 | 671 | ||||||
Deferred income tax expense and noncurrent
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unrecognized tax benefits
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2,818 | 2,249 | ||||||
Net gain from impairment and sale of investments
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(44 | ) | (629 | ) | ||||
Loss from discontinued operations
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- | 3 | ||||||
Changes in operating assets and liabilities:
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Accounts receivable
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(521 | ) | 394 | |||||
Other current assets
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104 | 389 | ||||||
Accounts payable and accrued liabilities
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(1,133 | ) | (3,063 | ) | ||||
Net income attributable to noncontrolling interest
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(127 | ) | (166 | ) | ||||
Other - net
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(758 | ) | 120 | |||||
Total adjustments
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9,631 | 9,189 | ||||||
Net Cash Provided by Operating Activities
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16,757 | 15,811 | ||||||
Investing Activities
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Construction and capital expenditures
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Capital expenditures
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(9,405 | ) | (7,856 | ) | ||||
Interest during construction
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(77 | ) | (379 | ) | ||||
Acquisitions, net of cash acquired
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(62 | ) | (2,554 | ) | ||||
Dispositions
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30 | 14 | ||||||
(Purchases) and sales of securities, net
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45 | (545 | ) | |||||
Other
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19 | 15 | ||||||
Net Cash Used in Investing Activities
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(9,450 | ) | (11,305 | ) | ||||
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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(1,603 | ) | 3,280 | |||||
Issuance of long-term debt
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2,985 | - | ||||||
Repayment of long-term debt
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(1,290 | ) | (4,661 | ) | ||||
Issuance of treasury shares
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199 | 5 | ||||||
Dividends paid
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(5,082 | ) | (4,960 | ) | ||||
Other
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(122 | ) | (534 | ) | ||||
Net Cash Used in Financing Activities
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(4,913 | ) | (6,870 | ) | ||||
Net increase (decrease) in cash and cash equivalents
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2,394 | (2,364 | ) | |||||
Cash and cash equivalents beginning of year
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1,437 | 3,741 | ||||||
Cash and Cash Equivalents End of Period
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$ | 3,831 | $ | 1,377 |
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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Six Months Ended
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6/30/2011
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6/30/2010
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% Chg
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6/30/2011
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6/30/2010
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% Chg
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Wireless
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Volumes (000)
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Total
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98,615 | 90,130 | 9.4 | % | ||||||||||||||||||||
Postpaid6
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68,353 | 66,970 | 2.1 | % | ||||||||||||||||||||
Prepaid6
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6,750 | 5,881 | 14.8 | % | ||||||||||||||||||||
Reseller6
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12,522 | 10,597 | 18.2 | % | ||||||||||||||||||||
Connected Devices6
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10,990 | 6,682 | 64.5 | % | ||||||||||||||||||||
Wireless Net Adds (000)
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Total
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1,095 | 1,562 | -29.9 | % | 3,079 | 3,419 | -9.9 | % | ||||||||||||||||
Postpaid6
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331 | 496 | -33.3 | % | 393 | 1,008 | -61.0 | % | ||||||||||||||||
Prepaid6
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137 | 300 | -54.3 | % | 222 | 324 | -31.5 | % | ||||||||||||||||
Reseller6
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248 | (130 | ) | - | 809 | 139 | - | |||||||||||||||||
Connected Devices6
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379 | 896 | -57.7 | % | 1,655 | 1,948 | -15.0 | % | ||||||||||||||||
M&A Activity, Partitioned Customers and Other Adjs.
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1 | 1,581 | - | 1,591 | ||||||||||||||||||||
Wireless Churn
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Postpaid Churn6
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1.15 | % | 1.01 | % |
14 BP
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1.17 | % | 1.04 | % |
13 BP
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Total Churn6
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1.43 | % | 1.29 | % |
14 BP
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1.40 | % | 1.29 | % |
11 BP
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Other
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Licensed POPs (000,000)
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313 | 307 | 2.0 | % | ||||||||||||||||||||
In-Region Wireline1
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Voice
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Total Wireline Voice Connections
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41,298 | 46,058 | -10.3 | % | ||||||||||||||||||||
Net Change
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(1,159 | ) | (1,327 | ) | 12.7 | % | (2,265 | ) | (2,430 | ) | 6.8 | % | ||||||||||||
Broadband
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Total Wireline Broadband Connections
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16,473 | 15,952 | 3.3 | % | ||||||||||||||||||||
Net Change
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(12 | ) | (92 | ) | 87.0 | % | 163 | 163 | - | |||||||||||||||
Video
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U-verse
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3,407 | 2,505 | 36.0 | % | ||||||||||||||||||||
Satellite
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1,852 | 2,053 | -9.8 | % | ||||||||||||||||||||
Total Video Connections
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5,259 | 4,558 | 15.4 | % | ||||||||||||||||||||
Net Change
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168 | 135 | 24.4 | % | 342 | 319 | 7.2 | % | ||||||||||||||||
Consumer Revenue Connections
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Broadband3
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14,520 | 13,925 | 4.3 | % | ||||||||||||||||||||
Video Connections4
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5,250 | 4,557 | 15.2 | % | ||||||||||||||||||||
Voice2
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22,735 | 25,780 | -11.8 | % | ||||||||||||||||||||
Total Consumer Revenue Connections
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42,505 | 44,262 | -4.0 | % | ||||||||||||||||||||
Net Change
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(574 | ) | (782 | ) | 26.6 | % | (922 | ) | (1,025 | ) | 10.0 | % | ||||||||||||
AT&T Inc.
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Construction and capital expenditures
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Capital expenditures
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$ | 5,272 | $ | 4,709 | 12.0 | % | $ | 9,405 | $ | 7,856 | 19.7 | % | ||||||||||||
Interest during construction
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$ | 42 | $ | 195 | -78.5 | % | $ | 77 | $ | 379 | -79.7 | % | ||||||||||||
Dividends Declared per Share
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$ | 0.43 | $ | 0.42 | 2.4 | % | $ | 0.86 | $ | 0.84 | 2.4 | % | ||||||||||||
End of Period Common Shares Outstanding (000,000)
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5,925 | 5,909 | 0.3 | % | ||||||||||||||||||||
Debt Ratio5
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36.8 | % | 40.4 | % |
-360 BP
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Total Employees
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258,870 | 272,450 | -5.0 | % | ||||||||||||||||||||
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 2,023 as of June 30, 2011.
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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 long-term debt plus debt maturing within one year divided by total debt plus total stockholders' equity.
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6
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Prior year amounts restated to conform to current period reporting methodology.
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Note: For the end of 2Q11, total switched access lines were 39,275, retail business switched access lines totaled 16,293, and wholesale
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and coin switched access lines totaled 2,270.
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