TIDM58KM
RNS Number : 8518P
AT & T Inc.
23 July 2010
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of report (Date of earliest event reported) July 22, 2010
AT&T INC.
(Exact Name of Registrant as Specified in Charter)
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| Delaware | 1-8610 | 43-1301883 |
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| (State |(Commission | (IRS |
| or | File | Employer |
| Other | Number) |Identification |
| Jurisdiction | | No.) |
| of | | |
|Incorporation) | | |
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+-----------+--------+
| 208 S. | 75202 |
| Akard | |
| St., | |
| Dallas, | |
| Texas | |
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| | (Zip |
| (Address | Code) |
| of | |
|Principal | |
|Executive | |
| Offices) | |
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Registrant's telephone number, including area code (210) 821-4105
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| | |
+--------+--------+
|(Former Name or |
|Former Address, |
| if Changed |
| Since Last |
| Report) |
+--------+--------+
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
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| o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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| o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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| o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240-14d-2(b)) |
+-----------+----------------------------------------------------------------------------------------------------------+
+-----------+----------------------------------------------------------------------------------------------------------+
| o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
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Item 2.02 Results of Operations and Financial Condition.
The registrant announced on July 22, 2010, its results of operations for the
second quarter of 2010. The text of the press release and accompanying financial
information are attached as exhibits and incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
The following exhibits are furnished as part of this report:
(d) Exhibits
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| | 99.1 | Press |
| | | release |
| | | dated |
| | | July |
| | | 22, |
| | | 2010 |
| | | reporting |
| | | financial |
| | | results |
| | | for the |
| | | second |
| | | quarter |
| | | ended |
| | | June 30, |
| | | 2010. |
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| | 99.2 | AT&T |
| | | Inc. |
| | | selected |
| | | financial |
| | | statements |
| | | and |
| | | operating |
| | | data. |
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| | | |
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| | 99.3 | Discussion |
| | | of OIBDA, |
| | | Free Cash |
| | | Flow, Free |
| | | Cash Flow |
| | | Yield, and |
| | | Free Cash |
| | | Flow after |
| | | Dividends |
+--------+--------+------------+
| | | |
+--------+--------+------------+
Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
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| AT&T INC. |
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| Date: | By: |
| July | /s/ |
| 22, 2010 | John |
| | J. |
| | Stephens |
| | |
| | |
| | John J. |
| | Stephens |
| | Senior |
| | Vice |
| | President |
| | and |
| | Controller |
| | |
| | |
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AT&T Delivers Double-Digit Earnings Growth in Second
Quarter, Raises Full-Year Outlook
Consolidated Revenues Increase,
Margins Expand and Cash Flow Remains Strong
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| · | $0.68 diluted EPS compares with $0.54 diluted EPS in the second quarter of 2009, up 25.9 percent; up 13.0 percent excluding a $0.07 one-time gain from a Telmex Internacional stock transaction |
| | |
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| · | $30.8 billion second-quarter consolidated revenues from continuing operations, up $194 million, or 0.6 percent, versus the year-earlier period and up $278 million, or 0.9 percent, sequentially |
| | |
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| · | Consolidated operating margin expansion to 19.8 percent, up from 18.0 percent in the year-earlier quarter |
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| · | 1.6 million organic net adds in total wireless subscribers, best-ever second quarter, to reach 90.1 million in service |
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| · | 3.2 million iPhone activations in second quarter, a company record |
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| · | Best-ever wireless churn levels, with 1.01 percent postpaid churn and 1.29 percent total churn |
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| · | 10.3 percent increase in wireless service revenues, with postpaid subscriber ARPU (average monthly revenues per subscriber) up 3.4 percent; sixth consecutive quarter with a year-over-year increase in postpaid ARPU |
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| · | 27.2 percent growth in wireless data revenues, up $936 million versus the year-earlier quarter |
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| · | 2.9 million net increase in 3G postpaid integrated devices on AT&T's wireless network to reach 29.7 million |
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| · | 32.0 percent growth in wireline consumer IP data revenues driven by AT&T U-verse expansion; first-ever billion-dollar revenue quarter for AT&T U-verse services |
| | |
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| · | 209,000 net gain in AT&T U-verse TV subscribers to reach 2.5 million in service, with continued high broadband and voice attach rates |
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| · | 15.8 percent growth in revenues from strategic business services such as Ethernet, Virtual Private Networks (VPNs), hosting and application services |
| | |
+---------------------------+------------------------------------------------------------------------------------------------------------------------------------------------------+
Note: AT&T's second-quarter earnings conference call will be broadcast live via
the Internet at 10 a.m. ET on Thursday, July 22, 2010, at
www.att.com/investor.relations.
DALLAS, July 22, 2010 - AT&T Inc. (NYSE:T) today reported solid second-quarter
results highlighted by double-digit earnings growth, an increase in consolidated
revenues and improved margins. These results were driven by continued growth in
mobile broadband, including a record quarter for iPhone activations, gains in
IP-based and strategic business services and disciplined execution on cost
initiatives.
1
"We delivered another strong quarter, with improved revenue trends, double-digit
earnings growth and solid cash flow. These results add to our confidence going
into the second half of the year," said Randall Stephenson, AT&T chairman and
chief executive officer.
"We continue to see positive signs of growth in almost every customer segment of
our business, especially wireless, which speaks to the quality of our execution
and our leadership in the industry's most powerful growth driver - mobile
broadband. I am excited by the opportunities ahead."
Second-Quarter Financial Results
(During the second quarter, AT&T announced it had entered into a definitive
agreement with IBM to sell Sterling Commerce for approximately $1.4 billion in
cash. AT&T expects the sale to close in the second half of 2010. Second-quarter
comparisons are based on results from continuing operations, which exclude
results from Sterling Commerce in all periods.)
For the quarter ended June 30, 2010, AT&T's consolidated revenues totaled $30.8
billion, up $194 million, or 0.6 percent, versus the year-earlier quarter,
marking the company's second consecutive quarter with a year-over-year revenue
increase. Versus the first quarter of this year, consolidated revenues were up
$278 million, or 0.9 percent.
Compared with results for the second quarter of 2009, operating expenses were
$24.7 billion versus $25.1 billion; operating income was $6.1 billion, up from
$5.5 billion; and AT&T's operating income margin expanded to 19.8 percent, up
from 18.0 percent. Total employee force is down by more than 10,000 since
year-end 2009.
Second-quarter 2010 net income attributable to AT&T totaled $4.0 billion, or
$0.68 per diluted share, up 25.9 percent, including a $0.07 one-time gain from
the exchange of Telmex Internacional stock for shares of América Móvil.
Excluding the gain from the Telmex Internacional transaction, earnings grew 13.0
percent to $0.61 per diluted share. These results compare with net income
attributable to AT&T of $3.2 billion, or $0.54 per diluted share, in the
year-earlier second quarter.
Second-quarter 2010 cash from operating activities totaled $8.6 billion; capital
expenditures totaled $4.9 billion, including a nearly 60-percent increase in
wireless-related capital investment versus the year-earlier quarter, as AT&T
aggressively deploys next-generation wireless broadband networks. Free cash flow
- cash from operating activities minus capital expenditures - totaled $3.7
billion.
Compared with results for the first half of 2009, year to date through the
second quarter, cash from operating activities totaled $15.8 billion versus
$15.8 billion; capital expenditures totaled $8.2 billion versus $7.4 billion;
and free cash flow totaled $7.6 billion versus $8.4 billion.
Updating Outlook
Due to improved revenue trends and strong execution, AT&T has updated its
earnings outlook for full-year 2010. Previously the company expected
stable-to-improved earnings per share, stable-to-improved consolidated operating
income margins and free cash flow in line with 2008 results. The company now
expects strong earnings per share growth for full-year 2010, improved
consolidated operating income margins and free cash flow above 2008 levels.
2
Wireless Operational Highlights
AT&T delivered strong second-quarter growth in its wireless business, led by its
premier data network, industry leadership in mobile broadband and a compelling
array of devices and applications. Highlights included:
Strong Second-Quarter Subscriber Gain. AT&T posted an organic net gain in total
wireless subscribers of 1.6 million, to reach 90.1 million in service.
Second-quarter net add growth reflects rapid adoption of smartphones, increases
in prepaid subscribers and growth in a host of connected devices such as
eReaders, global positioning systems and alarm monitoring systems. Connected
devices net adds were 896,000 in the quarter to reach 6.7 million, and retail
postpaid net adds totaled 496,000 to reach 67.0 million.
Best-ever Subscriber Churn Levels.For the sixth consecutive quarter, AT&T had
year-over-year improvement in both total and postpaid wireless churn. Postpaid
churn was 1.01 percent, down from 1.07 percent in the year-earlier quarter, and
total churn was 1.29 percent versus 1.48 percent in the second quarter of 2009 -
both record lows for the company.
Robust Wireless Data Revenue Growth.Wireless data revenues - from messaging,
Internet access, access to applications and related services - increased $936
million, or 27.2 percent, from the year-earlier quarter to $4.4 billion. AT&T
wireless subscribers on data plans increased more than 24 percent over the past
year. Versus the year-earlier quarter, total text messages carried on the AT&T
network increased 41.7 percent to 154 billion and multimedia messages more than
doubled to 2.6 billion.
Continued Postpaid ARPU Growth.Driven by strong data growth, postpaid subscriber
ARPU increased 3.4 percent versus the year-earlier quarter to $62.63, despite
including 1.6 million subscribers from the acquistion of properties from Verizon
Wireless. This marked the sixth consecutive quarter AT&T has posted a
year-over-year increase in postpaid ARPU. Postpaid data ARPU reached $21.07, up
18.6 percent versus the year-earlier quarter, and total postpaid subscriber
revenues continued recent trends, with solid double-digit growth, reflecting
increases in both voice and data.
Strong Integrated Device Growth. Key drivers of wireless data growth are
increased penetration of integrated devices (handsets with QWERTY or virtual
keyboards in addition to voice functionality) and greater usage of AT&T's mobile
broadband network, the nation's fastest. The number of 3G postpaid integrated
devices on AT&T's wireless network increased by 2.9 million to 29.7 million, an
increase of 98.2 percent year over year and 10.8 percent sequentially. At the
end of the quarter, 53.2 percent of AT&T's 67.0 million postpaid subscribers had
integrated devices, up from 36.3 percent one year earlier. The average ARPU for
integrated devices on AT&T's network is 1.7 times that of the company's
nonintegrated-device base. More than 80 percent of integrated device
subscribers are on FamilyTalk and/or business discount plans. Churn levels for
these plans continue to run below the company's total and postpaid base.
3.2 Million iPhone Activations. On June 24, AT&T began offering iPhone 4, the
most powerful iPhone yet. Preorder sales of iPhone 4 were 10 times higher than
the first day of preordering for iPhone 3GS a year earlier. For the full second
quarter, AT&T iPhone activations totaled 3.2 million, the most quarterly iPhone
activations ever. Approximately 27 percent of those activations were for
customers who were new to AT&T.
3
Wireless Margin Expansion. Even with the volumes associated with the June launch
of iPhone 4, in the second quarter, AT&T delivered substantial year-over-year
wireless margin expansion, driven by continued solid revenue growth, reduced
churn, improved operating efficiencies and further growth in the company's base
of high-quality subscribers. AT&T's wireless operating income margin was 28.8
percent versus 24.9 percent in the year-earlier quarter, and AT&T's wireless
OIBDA service margin was 43.1 percent, up from 40.1 percent in the second
quarter of 2009 (OIBDA service margin is operating income before depreciation
and amortization, divided by total service revenues). Wireless service revenues
increased 10.3 percent to $13.2 billion in the second quarter, and total
wireless revenues, which include equipment sales, were up 7.7 percent to $14.2
billion. Second-quarter wireless operating expenses totaled $10.1 billion, up
2.1 percent versus the year-earlier quarter, and wireless operating income was
$4.1 billion, up 24.7 percent year over year.
Wireline Operational Highlights
AT&T's second-quarter wireline results were highlighted by improving trends in
revenues and margins, further expansion in AT&T U-verse services, sustained
mid-teens growth in revenues from strategic business services and solid cost
management, which helped support improving margins. Highlights included:
Second Consecutive Quarter of Sequential Growth in Wireline Consumer Revenues.
Driven by strength in IP data services, in the second quarter, total revenue
from residential customers totaled $5.4 billion, flat compared to the second
quarter of 2009. Versus the first quarter of 2010, consumer wireline revenues
increased 1.1 percent. This is the second consecutive quarter of sequential
growth.
Gains in AT&T U-verse TV, with Growth in Integrated Broadband and Voice
Services. AT&T U-verse TV subscribers increased by 209,000 in the quarter to
reach 2.5 million, up almost 60 percent over the past year. In the second
quarter, the AT&T U-verse High Speed Internet attach rate continued to run above
90 percent, and about two-thirds of subscribers took AT&T U-verse Voice. More
than three-fourths of AT&T U-verse TV subscribers have a triple- or quad-play
option from AT&T. ARPU for U-verse triple play customers was nearly $160, up
13.8 percent year over year and 6.8 percent from the first quarter of 2010.
AT&T's U-verse deployment now reaches 25 million living units. Companywide
penetration of eligible living units is more than 13 percent, and across areas
marketed to for 30 months or more, overall penetration is more than 22 percent.
AT&T's total video subscribers, which combine the company's U-verse and bundled
satellite customers, reached 4.6 million at the end of the quarter, representing
17.9 percent of households served.
U-verse Revenues Exceed $1 Billion for the Quarter. Increased AT&T U-verse
penetration drove 32.0 percent year-over-year growth in consumer IP revenues
(broadband, U-verse TV and U-verse Voice). U-verse continues to drive a
transformation in AT&T's consumer business, reflected by the fact that consumer
IP revenues now represent 40.4 percent of AT&T's consumer wireline revenues, up
from 30.6 percent in the year-earlier quarter. In the second quarter, AT&T
U-verse revenues exceeded $1 billion for the first time, more than twice the
U-verse revenues in the second quarter of 2009.
4
Consumer Connection Trends. In the second quarter, AT&T posted a decline in
total consumer revenue connections due primarily to expected declines in
traditional voice access lines consistent with broader industry trends, somewhat
offset by increases in U-verse TV and VoIP (Voice over Internet Protocol)
connections. AT&T U-verse Voice connections increased by 183,000 in the quarter
and 758,000 over the past four quarters. Total consumer revenue connections at
the end of the first quarter were 44.3 million, compared with 46.3 million at
the end of the second quarter of 2009 and 45.0 million at the end of the first
quarter of 2010. At the end of the second quarter, AT&T had 16 million total
wired broadband connections, up 404,000 over the past year and down 92,000 from
first-quarter 2010 levels.
Further Signs of Stabilization in Business Markets. AT&T posted its best
year-over-year business revenue comparisons in five quarters - reflecting
continued solid sales performance and continued improvement in key economic
metrics. Total business revenues were $9.6 billion, a decline of 4.7 percent
versus the year-earlier quarter. Business service revenues, which exclude CPE,
declined 4.0 percent, the third consecutive quarter of improvement, and
decreased slightly sequentially, down 0.7 percent.
Business IP Revenues Drive Overall Business Data Growth. Business IP data
revenues grew 9.1 percent overall, the largest year-over-year increase in four
quarters, led by growth in VPN revenues. This generated total business data
growth of 0.3 percent, the first growth in this category in five quarters.
Global enterprise IP data revenues grew 10.8 percent. Approximately 70 percent
of AT&T's frame customers have made the transition to IP-based solutions, which
allow them to easily add managed services such as network security, hosting and
IP conferencing on top of their infrastructures.
15.8 Percent Growth in Strategic Business Services Revenues. Revenues from
new-generation capabilities that lead AT&T's most advanced business solutions -
including Ethernet, VPNs, hosting, IP conferencing and application services -
grew 15.8 percent versus the year-earlier quarter and were up 4.6 percent from
the first quarter of 2010, continuing AT&T's strong trends in this category.
Consolidated Wireline Revenues Flat Sequentially. Led by improved consumer and
business customer trends, total wireline revenues posted their smallest
year-over-year decline in five quarters, down 3.7 percent, and were essentially
flat sequentially. Second-quarter wireline operating expenses were $13.5
billion, down 4.3 percent versus the second quarter of 2009 and down 1.5 percent
sequentially. Wireline operating income totaled $1.9 billion, compared to $1.9
billion in the second quarter of 2009 and $1.7 billion in the first quarter of
2010. AT&T's second-quarter wireline operating income margin was 12.2 percent,
compared with 11.7 percent in the year-earlier quarter and 11.1 percent in the
first quarter of 2010.
About AT&T
AT&T Inc. (NYSE:T) is a premier communications holding company. Its subsidiaries
and affiliates - AT&T operating companies - are the providers of AT&T services
in the United States and around the world. With a powerful array of network
resources that includes the nation's fastest mobile broadband network, AT&T is a
leading provider of wireless, Wi-Fi, high speed Internet and voice services. A
leader in mobile broadband, AT&T also offers the best wireless coverage
worldwide, offering the most wireless phones that work in the most countries. It
also offers advanced TV services under the AT&T U-verse and AT&T ¦DIRECTVSM
brands. The company's suite of IP-based business communications services is one
of the most advanced in the world. In domestic markets, AT&T Advertising
Solutions and AT&T Interactive are known for their leadership in local search
and advertising. In 2010, AT&T again ranked among the 50 Most Admired Companies
by FORTUNE magazine.
5
Additional information about AT&T Inc. and the products and services provided by
AT&T subsidiaries and affiliates is available at http://www.att.com. This AT&T
news release and other announcements are available at
http://www.att.com/newsroom and as part of an RSS feed at www.att.com/rss. Or
follow our news on Twitter at @ATTNews. Find us on Facebook at
www.Facebook.com/ATT to discover more about our consumer and wireless services
or at www.Facebook.com/ATTSmallBiz to discover more about our small business
services.
AT&T products and services are provided or offered by subsidiaries and
affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc.
c 2010 AT&T Intellectual Property. All rights reserved. 3G service not available
in all areas. AT&T, the AT&T logo and all other marks contained herein are
trademarks of AT&T Intellectual Property and/or AT&T affiliated companies.
Cautionary Language Concerning Forward-Looking Statements
Information set forth in this news release contains financial estimates and
other forward-looking statements that are subject to risks and uncertainties,
and actual results may differ materially. A discussion of factors that may
affect future results is contained in AT&T's filings with the Securities and
Exchange Commission. AT&T disclaims any obligation to update or revise
statements contained in this news release based on new information or otherwise.
This news release may contain certain non-GAAP financial measures.
Reconciliations between the non-GAAP financial measures and the GAAP financial
measures are available on the company's Web site at
www.att.com/investor.relations. Accompanying financial statements follow.
NOTE: OIBDA is defined as operating income (loss) before depreciation and
amortization. OIBDA differs from Segment Operating Income (loss), as calculated
in accordance with generally accepted accounting principles (GAAP), in that it
excludes depreciation and amortization. OIBDA 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. OIBDA is not presented
as an alternative measure of operating results or cash flows from operations, as
determined in accordance with GAAP. Our calculation of OIBDA, as presented, may
differ from similarly titled measures reported by other companies.
NOTE: Free cash flow is defined as cash from operations minus capital
expenditures. We believe this metric provides useful information to our
investors because management regularly reviews free cash flow as an important
indicator of how much cash is generated by normal business operations, including
capital expenditures, and makes decisions based on it. Management also views it
as a measure of cash available to pay debt and return cash to shareowners.
6
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Financial | | | | | | | | | | | | | | | | | | |
| Data | | | | | | | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| | | | | | | | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| AT&T | | | | | | | | | | | | | | | | | | |
| Inc. | | | | | | | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| Consolidated | | | | | | | | | | | | | | | | | | |
| Statements | | | | | | | | | | | | | | | | | | |
| of Income | | | | | | | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| Dollars | | | | | | | | | | | | | | | | | | |
| in | | | | | | | | | | | | | | | | | | |
| millions | | | | | | | | | | | | | | | | | | |
| except | | | | | | | | | | | | | | | | | | |
| per | | | | | | | | | | | | | | | | | | |
| share | | | | | | | | | | | | | | | | | | |
| amounts | | | | | | | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| Unaudited | Three Months Ended | | Six Months Ended |
+----------------+-----------------------------------------------------------------------------------------------------------+--------+--------------------------------------------------------------------------------------------------+
| | | 6/30/2010 | | | 6/30/2009 | | | % Chg | | 6/30/2010 | | | 6/30/2009 | | | % Chg |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+--------------------------+--------+-----------------+--------+--------+-----------------+--------+--------+--------------------------+
| Operating | | | | | | | | | | | | | | | | | | |
| Revenues | | | | | | | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| | | $ | 13,186 | | | $ | 11,960 | | | | 10.3 | % | | $ | 26,036 | | | $ | 23,606 | | | | 10.3 | % |
| Wireless | | | | | | | | | | | | | | | | | | | | | | | | |
| service | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 7,219 | | | | 8,255 | | | | -12.5 | % | | | 14,698 | | | | 16,758 | | | | -12.3 | % |
| Voice | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Data | | | 6,848 | | | | 6,323 | | | | 8.3 | % | | | 13,479 | | | | 12,605 | | | | 6.9 | % |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 1,007 | | | | 1,211 | | | | -16.8 | % | | | 2,048 | | | | 2,460 | | | | -16.7 | % |
| Directory | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 2,548 | | | | 2,865 | | | | -11.1 | % | | | 5,077 | | | | 5,642 | | | | -10.0 | % |
| Other | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 30,808 | | | | 30,614 | | | | 0.6 | % | | | 61,338 | | | | 61,071 | | | | 0.4 | % |
| Total | | | | | | | | | | | | | | | | | | | | | | | | |
| Operating | | | | | | | | | | | | | | | | | | | | | | | | |
| Revenues | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Operating | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Cost | | | | | | | | | | | | | | | | | | | | | | | | |
| of | | | | | | | | | | | | | | | | | | | | | | | | |
| services | | | | | | | | | | | | | | | | | | | | | | | | |
| and | | | | | | | | | | | | | | | | | | | | | | | | |
| sales | | | | | | | | | | | | | | | | | | | | | | | | |
| (exclusive | | | | | | | | | | | | | | | | | | | | | | | | |
| of | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 12,381 | | | | 12,557 | | | | -1.4 | % | | | 24,716 | | | | 24,758 | | | | -0.2 | % |
| depreciation | | | | | | | | | | | | | | | | | | | | | | | | |
| and | | | | | | | | | | | | | | | | | | | | | | | | |
| amortization | | | | | | | | | | | | | | | | | | | | | | | | |
| shown | | | | | | | | | | | | | | | | | | | | | | | | |
| separately | | | | | | | | | | | | | | | | | | | | | | | | |
| below) | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 7,475 | | | | 7,682 | | | | -2.7 | % | | | 14,863 | | | | 15,340 | | | | -3.1 | % |
| Selling, | | | | | | | | | | | | | | | | | | | | | | | | |
| general | | | | | | | | | | | | | | | | | | | | | | | | |
| and | | | | | | | | | | | | | | | | | | | | | | | | |
| administrative | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 4,838 | | | | 4,875 | | | | -0.8 | % | | | 9,638 | | | | 9,733 | | | | -1.0 | % |
| Depreciation | | | | | | | | | | | | | | | | | | | | | | | | |
| and | | | | | | | | | | | | | | | | | | | | | | | | |
| amortization | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 24,694 | | | | 25,114 | | | | -1.7 | % | | | 49,217 | | | | 49,831 | | | | -1.2 | % |
| Total | | | | | | | | | | | | | | | | | | | | | | | | |
| Operating | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Operating | | | 6,114 | | | | 5,500 | | | | 11.2 | % | | | 12,121 | | | | 11,240 | | | | 7.8 | % |
| Income | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Interest | | | 754 | | | | 876 | | | | -13.9 | % | | | 1,519 | | | | 1,722 | | | | -11.8 | % |
| Expense | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Equity | | | 195 | | | | 231 | | | | -15.6 | % | | | 412 | | | | 368 | | | | 12.0 | % |
| in Net | | | | | | | | | | | | | | | | | | | | | | | | |
| Income | | | | | | | | | | | | | | | | | | | | | | | | |
| of | | | | | | | | | | | | | | | | | | | | | | | | |
| Affiliates | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Other | | | 723 | | | | 30 | | | | - | | | | 700 | | | | 15 | | | | - | |
| Income | | | | | | | | | | | | | | | | | | | | | | | | |
| (Expense) | | | | | | | | | | | | | | | | | | | | | | | | |
| - Net | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Income | | | 6,278 | | | | 4,885 | | | | 28.5 | % | | | 11,714 | | | | 9,901 | | | | 18.3 | % |
| from | | | | | | | | | | | | | | | | | | | | | | | | |
| Continuing | | | | | | | | | | | | | | | | | | | | | | | | |
| Operations | | | | | | | | | | | | | | | | | | | | | | | | |
| Before | | | | | | | | | | | | | | | | | | | | | | | | |
| Income | | | | | | | | | | | | | | | | | | | | | | | | |
| Taxes | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Income | | | 2,173 | | | | 1,612 | | | | 34.8 | % | | | 5,048 | | | | 3,423 | | | | 47.5 | % |
| Taxes | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Income | | | 4,105 | | | | 3,273 | | | | 25.4 | % | | | 6,666 | | | | 6,478 | | | | 2.9 | % |
| from | | | | | | | | | | | | | | | | | | | | | | | | |
| Continuing | | | | | | | | | | | | | | | | | | | | | | | | |
| Operations | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Income | | | (4 | ) | | | 3 | | | | - | | | | (3 | ) | | | (1 | ) | | | - | |
| (Loss) | | | | | | | | | | | | | | | | | | | | | | | | |
| from | | | | | | | | | | | | | | | | | | | | | | | | |
| Discontinued | | | | | | | | | | | | | | | | | | | | | | | | |
| Operations, | | | | | | | | | | | | | | | | | | | | | | | | |
| net of tax | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Net | | | 4,101 | | | | 3,276 | | | | 25.2 | % | | | 6,663 | | | | 6,477 | | | | 2.9 | % |
| Income | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | (78 | ) | | | (78 | ) | | | 0.0 | % | | | (165 | ) | | | (153 | ) | | | -7.8 | % |
| Less: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net | | | | | | | | | | | | | | | | | | | | | | | | |
| Income | | | | | | | | | | | | | | | | | | | | | | | | |
| Attributable | | | | | | | | | | | | | | | | | | | | | | | | |
| to | | | | | | | | | | | | | | | | | | | | | | | | |
| Noncontrolling | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Net | | $ | 4,023 | | | $ | 3,198 | | | | 25.8 | % | | $ | 6,498 | | | $ | 6,324 | | | | 2.8 | % |
| Income | | | | | | | | | | | | | | | | | | | | | | | | |
| Attributable | | | | | | | | | | | | | | | | | | | | | | | | |
| to AT&T | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Basic | | | | | | | | | | | | | | | | | | | | | | | | |
| Earnings | | | | | | | | | | | | | | | | | | | | | | | | |
| Per | | | | | | | | | | | | | | | | | | | | | | | | |
| Share | | | | | | | | | | | | | | | | | | | | | | | | |
| from | | | | | | | | | | | | | | | | | | | | | | | | |
| Continuing | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | $ | 0.68 | | | $ | 0.54 | | | | 25.9 | % | | $ | 1.10 | | | $ | 1.07 | | | | 2.8 | % |
| Operations | | | | | | | | | | | | | | | | | | | | | | | | |
| Attributable | | | | | | | | | | | | | | | | | | | | | | | | |
| to AT&T | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Basic | | | | | | | | | | | | | | | | | | | | | | | | |
| Earnings | | | | | | | | | | | | | | | | | | | | | | | | |
| Per | | | | | | | | | | | | | | | | | | | | | | | | |
| Share | | | | | | | | | | | | | | | | | | | | | | | | |
| from | | | | | | | | | | | | | | | | | | | | | | | | |
| Discontinued | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
| Operations | | | | | | | | | | | | | | | | | | | | | | | | |
| Attributable | | | | | | | | | | | | | | | | | | | | | | | | |
| to AT&T | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Basic | | $ | 0.68 | | | $ | 0.54 | | | | 25.9 | % | | $ | 1.10 | | | $ | 1.07 | | | | 2.8 | % |
| Earnings | | | | | | | | | | | | | | | | | | | | | | | | |
| Per | | | | | | | | | | | | | | | | | | | | | | | | |
| Share | | | | | | | | | | | | | | | | | | | | | | | | |
| Attributable | | | | | | | | | | | | | | | | | | | | | | | | |
| to AT&T | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Weighted | | | | | | | | | | | | | | | | | | | | | | | | |
| Average | | | | | | | | | | | | | | | | | | | | | | | | |
| Common | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 5,909 | | | | 5,900 | | | | 0.2 | % | | | 5,907 | | | | 5,898 | | | | 0.2 | % |
| Shares | | | | | | | | | | | | | | | | | | | | | | | | |
| Outstanding | | | | | | | | | | | | | | | | | | | | | | | | |
| (000,000) | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Diluted | | | | | | | | | | | | | | | | | | | | | | | | |
| Earnings | | | | | | | | | | | | | | | | | | | | | | | | |
| Per | | | | | | | | | | | | | | | | | | | | | | | | |
| Share | | | | | | | | | | | | | | | | | | | | | | | | |
| from | | | | | | | | | | | | | | | | | | | | | | | | |
| Continuing | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | $ | 0.68 | | | $ | 0.54 | | | | 25.9 | % | | $ | 1.10 | | | $ | 1.07 | | | | 2.8 | % |
| Operations | | | | | | | | | | | | | | | | | | | | | | | | |
| Attributable | | | | | | | | | | | | | | | | | | | | | | | | |
| to AT&T | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Diluted | | | | | | | | | | | | | | | | | | | | | | | | |
| Earnings | | | | | | | | | | | | | | | | | | | | | | | | |
| Per | | | | | | | | | | | | | | | | | | | | | | | | |
| Share | | | | | | | | | | | | | | | | | | | | | | | | |
| from | | | | | | | | | | | | | | | | | | | | | | | | |
| Discontinued | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
| Operations | | | | | | | | | | | | | | | | | | | | | | | | |
| Attributable | | | | | | | | | | | | | | | | | | | | | | | | |
| to AT&T | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Diluted | | $ | 0.68 | | | $ | 0.54 | | | | 25.9 | % | | $ | 1.10 | | | $ | 1.07 | | | | 2.8 | % |
| Earnings | | | | | | | | | | | | | | | | | | | | | | | | |
| Per | | | | | | | | | | | | | | | | | | | | | | | | |
| Share | | | | | | | | | | | | | | | | | | | | | | | | |
| Attributable | | | | | | | | | | | | | | | | | | | | | | | | |
| to AT&T | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Weighted | | | | | | | | | | | | | | | | | | | | | | | | |
| Average | | | | | | | | | | | | | | | | | | | | | | | | |
| Common | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 5,937 | | | | 5,923 | | | | 0.2 | % | | | 5,936 | | | | 5,923 | | | | 0.2 | % |
| Shares | | | | | | | | | | | | | | | | | | | | | | | | |
| Outstanding | | | | | | | | | | | | | | | | | | | | | | | | |
| with | | | | | | | | | | | | | | | | | | | | | | | | |
| Dilution | | | | | | | | | | | | | | | | | | | | | | | | |
| (000,000) | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Financial | | | | | | | | | | | | | | | | | | |
| Data | | | | | | | | | | | | | | | | | | |
+--------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| | | | | | | | | | | | | | | | | | | |
+--------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| AT&T | | | | | | | | | | | | | | | | | | |
| Inc. | | | | | | | | | | | | | | | | | | |
+--------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| Statements | | | | | | | | | | | | | | | | | | |
| of Segment | | | | | | | | | | | | | | | | | | |
| Income | | | | | | | | | | | | | | | | | | |
+--------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| Dollars | | | | | | | | | | | | | | | | | | |
| in | | | | | | | | | | | | | | | | | | |
| millions | | | | | | | | | | | | | | | | | | |
+--------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| Unaudited | | | | | | | | | | | | | | | | | | |
+--------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| | | Three Months Ended | | Six Months Ended |
+--------------+--------+--------------------------------------------------------------------------------------------------+--------+--------------------------------------------------------------------------------------------------+
| | | | | | | | | | | | | | | | | | | |
+--------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| Wireless | | 6/30/2010 | | | 6/30/2009 | | | % Chg | | 6/30/2010 | | | 6/30/2009 | | | % Chg |
+--------------+--------+-----------------+--------+--------+-----------------+--------+--------+--------------------------+--------+-----------------+--------+--------+-----------------+--------+--------+--------------------------+
| Segment | | | | | | | | | | | | | | | | | | |
| Operating | | | | | | | | | | | | | | | | | | |
| Revenues | | | | | | | | | | | | | | | | | | |
+--------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| | | $ | 13,186 | | | $ | 11,960 | | | | 10.3 | % | | $ | 26,036 | | | $ | 23,606 | | | | 10.3 | % |
| Service | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 1,056 | | | | 1,262 | | | | -16.3 | % | | | 2,103 | | | | 2,454 | | | | -14.3 | % |
| Equipment | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 14,242 | | | | 13,222 | | | | 7.7 | % | | | 28,139 | | | | 26,060 | | | | 8.0 | % |
| Total | | | | | | | | | | | | | | | | | | | | | | | | |
| Segment | | | | | | | | | | | | | | | | | | | | | | | | |
| Operating | | | | | | | | | | | | | | | | | | | | | | | | |
| Revenues | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Segment | | | | | | | | | | | | | | | | | | | | | | | | |
| Operating | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 8,562 | | | | 8,428 | | | | 1.6 | % | | | 16,745 | | | | 16,314 | | | | 2.6 | % |
| Operations | | | | | | | | | | | | | | | | | | | | | | | | |
| and | | | | | | | | | | | | | | | | | | | | | | | | |
| support | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 1,578 | | | | 1,504 | | | | 4.9 | % | | | 3,136 | | | | 3,003 | | | | 4.4 | % |
| Depreciation | | | | | | | | | | | | | | | | | | | | | | | | |
| and | | | | | | | | | | | | | | | | | | | | | | | | |
| amortization | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 10,140 | | | | 9,932 | | | | 2.1 | % | | | 19,881 | | | | 19,317 | | | | 2.9 | % |
| Total | | | | | | | | | | | | | | | | | | | | | | | | |
| Segment | | | | | | | | | | | | | | | | | | | | | | | | |
| Operating | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Segment | | | 4,102 | | | | 3,290 | | | | 24.7 | % | | | 8,258 | | | | 6,743 | | | | 22.5 | % |
| Operating | | | | | | | | | | | | | | | | | | | | | | | | |
| Income | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Equity | | | 7 | | | | - | | | | - | | | | 20 | | | | - | | | | - | |
| in Net | | | | | | | | | | | | | | | | | | | | | | | | |
| Income | | | | | | | | | | | | | | | | | | | | | | | | |
| of | | | | | | | | | | | | | | | | | | | | | | | | |
| Affiliates | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Segment | | $ | 4,109 | | | $ | 3,290 | | | | 24.9 | % | | $ | 8,278 | | | $ | 6,743 | | | | 22.8 | % |
| Income | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Segment | | | 28.8 | % | | | 24.9 | % | | | | | | | 29.3 | % | | | 25.9 | % | | | | |
| Operating | | | | | | | | | | | | | | | | | | | | | | | | |
| Income | | | | | | | | | | | | | | | | | | | | | | | | |
| Margin | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Wireline | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Segment | | | | | | | | | | | | | | | | | | | | | | | | |
| Operating | | | | | | | | | | | | | | | | | | | | | | | | |
| Revenues | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | $ | 7,219 | | | $ | 8,255 | | | | -12.5 | % | | $ | 14,698 | | | $ | 16,758 | | | | -12.3 | % |
| Voice | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Data | | | 6,848 | | | | 6,323 | | | | 8.3 | % | | | 13,479 | | | | 12,605 | | | | 6.9 | % |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 1,329 | | | | 1,411 | | | | -5.8 | % | | | 2,640 | | | | 2,788 | | | | -5.3 | % |
| Other | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 15,396 | | | | 15,989 | | | | -3.7 | % | | | 30,817 | | | | 32,151 | | | | -4.1 | % |
| Total | | | | | | | | | | | | | | | | | | | | | | | | |
| Segment | | | | | | | | | | | | | | | | | | | | | | | | |
| Operating | | | | | | | | | | | | | | | | | | | | | | | | |
| Revenues | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Segment | | | | | | | | | | | | | | | | | | | | | | | | |
| Operating | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 10,389 | | | | 10,924 | | | | -4.9 | % | | | 21,006 | | | | 21,856 | | | | -3.9 | % |
| Operations | | | | | | | | | | | | | | | | | | | | | | | | |
| and | | | | | | | | | | | | | | | | | | | | | | | | |
| support | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 3,123 | | | | 3,194 | | | | -2.2 | % | | | 6,219 | | | | 6,368 | | | | -2.3 | % |
| Depreciation | | | | | | | | | | | | | | | | | | | | | | | | |
| and | | | | | | | | | | | | | | | | | | | | | | | | |
| amortization | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 13,512 | | | | 14,118 | | | | -4.3 | % | | | 27,225 | | | | 28,224 | | | | -3.5 | % |
| Total | | | | | | | | | | | | | | | | | | | | | | | | |
| Segment | | | | | | | | | | | | | | | | | | | | | | | | |
| Operating | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Segment | | | 1,884 | | | | 1,871 | | | | 0.7 | % | | | 3,592 | | | | 3,927 | | | | -8.5 | % |
| Operating | | | | | | | | | | | | | | | | | | | | | | | | |
| Income | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Equity | | | - | | | | 4 | | | | - | | | | 5 | | | | 7 | | | | -28.6 | % |
| in Net | | | | | | | | | | | | | | | | | | | | | | | | |
| Income | | | | | | | | | | | | | | | | | | | | | | | | |
| of | | | | | | | | | | | | | | | | | | | | | | | | |
| Affiliates | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Segment | | $ | 1,884 | | | $ | 1,875 | | | | 0.5 | % | | $ | 3,597 | | | $ | 3,934 | | | | -8.6 | % |
| Income | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Segment | | | 12.2 | % | | | 11.7 | % | | | | | | | 11.7 | % | | | 12.2 | % | | | | |
| Operating | | | | | | | | | | | | | | | | | | | | | | | | |
| Income | | | | | | | | | | | | | | | | | | | | | | | | |
| Margin | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Advertising | | | | | | | | | | | | | | | | | | | | | | | | |
| Solutions | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Segment | | $ | 1,007 | | | $ | 1,211 | | | | -16.8 | % | | $ | 2,048 | | | $ | 2,460 | | | | -16.7 | % |
| Operating | | | | | | | | | | | | | | | | | | | | | | | | |
| Revenues | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Segment | | | | | | | | | | | | | | | | | | | | | | | | |
| Operating | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 673 | | | | 706 | | | | -4.7 | % | | | 1,348 | | | | 1,427 | | | | -5.5 | % |
| Operations | | | | | | | | | | | | | | | | | | | | | | | | |
| and | | | | | | | | | | | | | | | | | | | | | | | | |
| support | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 132 | | | | 166 | | | | -20.5 | % | | | 270 | | | | 342 | | | | -21.1 | % |
| Depreciation | | | | | | | | | | | | | | | | | | | | | | | | |
| and | | | | | | | | | | | | | | | | | | | | | | | | |
| amortization | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 805 | | | | 872 | | | | -7.7 | % | | | 1,618 | | | | 1,769 | | | | -8.5 | % |
| Total | | | | | | | | | | | | | | | | | | | | | | | | |
| Segment | | | | | | | | | | | | | | | | | | | | | | | | |
| Operating | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Segment | | | 202 | | | | 339 | | | | -40.4 | % | | | 430 | | | | 691 | | | | -37.8 | % |
| Operating | | | | | | | | | | | | | | | | | | | | | | | | |
| Income | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Equity | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
| in Net | | | | | | | | | | | | | | | | | | | | | | | | |
| Income | | | | | | | | | | | | | | | | | | | | | | | | |
| (Loss) | | | | | | | | | | | | | | | | | | | | | | | | |
| of | | | | | | | | | | | | | | | | | | | | | | | | |
| Affiliates | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Segment | | $ | 202 | | | $ | 339 | | | | -40.4 | % | | $ | 430 | | | $ | 691 | | | | -37.8 | % |
| Income | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Segment | | | 20.1 | % | | | 28.0 | % | | | | | | | 21.0 | % | | | 28.1 | % | | | | |
| Income | | | | | | | | | | | | | | | | | | | | | | | | |
| Margin | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Other | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Segment | | $ | 163 | | | $ | 192 | | | | -15.1 | % | | $ | 334 | | | $ | 400 | | | | -16.5 | % |
| Operating | | | | | | | | | | | | | | | | | | | | | | | | |
| Revenues | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Segment | | | 237 | | | | 192 | | | | 23.4 | % | | | 493 | | | | 521 | | | | -5.4 | % |
| Operating | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Segment | | | (74 | ) | | | - | | | | - | | | | (159 | ) | | | (121 | ) | | | -31.4 | % |
| Operating | | | | | | | | | | | | | | | | | | | | | | | | |
| Income | | | | | | | | | | | | | | | | | | | | | | | | |
| (Loss) | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Equity | | | 188 | | | | 226 | | | | -16.8 | % | | | 387 | | | | 360 | | | | 7.5 | % |
| in Net | | | | | | | | | | | | | | | | | | | | | | | | |
| Income | | | | | | | | | | | | | | | | | | | | | | | | |
| of | | | | | | | | | | | | | | | | | | | | | | | | |
| Affiliates | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Segment | | $ | 114 | | | $ | 226 | | | | -49.6 | % | | $ | 228 | | | $ | 239 | | | | -4.6 | % |
| Income | | | | | | | | | | | | | | | | | | | | | | | | |
| from | | | | | | | | | | | | | | | | | | | | | | | | |
| Continuing | | | | | | | | | | | | | | | | | | | | | | | | |
| Operations | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Segment | | | 69.9 | % | | | - | | | | | | | | 68.3 | % | | | 59.8 | % | | | | |
| Income | | | | | | | | | | | | | | | | | | | | | | | | |
| Margin | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Financial | | | | | | |
| Data | | | | | | |
+----------------+--------+-------------------+--------+--------+-------------------+--------+
| | | | | | | |
+----------------+--------+-------------------+--------+--------+-------------------+--------+
| AT&T | | | | | | |
| Inc. | | | | | | |
+----------------+--------+-------------------+--------+--------+-------------------+--------+
| Consolidated | | | | | | |
| Balance | | | | | | |
| Sheets | | | | | | |
+----------------+--------+-------------------+--------+--------+-------------------+--------+
| Dollars | | | | | | |
| in | | | | | | |
| millions | | | | | | |
| except | | | | | | |
| per | | | | | | |
| share | | | | | | |
| amounts | | | | | | |
+----------------+--------+-------------------+--------+--------+-------------------+--------+
| | | 6/30/10 | | | 12/31/09 | |
+----------------+--------+-------------------+--------+--------+-------------------+--------+
| | | Unaudited | | | | |
+----------------+--------+-------------------+--------+--------+-------------------+--------+
| | | | | | | |
+----------------+--------+-------------------+--------+--------+-------------------+--------+
| Assets | | | | | | |
+----------------+--------+-------------------+--------+--------+-------------------+--------+
| Current | | | | | | |
| Assets | | | | | | |
+----------------+--------+-------------------+--------+--------+-------------------+--------+
| Cash | | $ | 1,377 | | | $ | 3,741 | |
| and | | | | | | | | |
| cash | | | | | | | | |
| equivalents | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Accounts | | | | | | | | |
| receivable | | | | | | | | |
| - net of | | | | | | | | |
| allowances | | | | | | | | |
| for | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| | | | 13,780 | | | | 14,845 | |
| doubtful | | | | | | | | |
| accounts | | | | | | | | |
| of | | | | | | | | |
| $1,084 | | | | | | | | |
| and | | | | | | | | |
| $1,202 | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Prepaid | | | 1,666 | | | | 1,562 | |
| expenses | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Deferred | | | 1,225 | | | | 1,247 | |
| income | | | | | | | | |
| taxes | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Other | | | 3,344 | | | | 3,792 | |
| current | | | | | | | | |
| assets | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| | | | 21,392 | | | | 25,187 | |
| Total | | | | | | | | |
| current | | | | | | | | |
| assets | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Property, | | | 236,187 | | | | 230,295 | |
| plant and | | | | | | | | |
| equipment | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| | | | (135,885 | ) | | | (130,242 | ) |
| Less: | | | | | | | | |
| accumulated | | | | | | | | |
| depreciation | | | | | | | | |
| and | | | | | | | | |
| amortization | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Property, | | | 100,302 | | | | 100,053 | |
| Plant and | | | | | | | | |
| Equipment | | | | | | | | |
| - Net | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Goodwill | | | 73,484 | | | | 72,782 | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Licenses | | | 49,957 | | | | 48,741 | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Customer | | | 6,047 | | | | 7,393 | |
| Lists | | | | | | | | |
| and | | | | | | | | |
| Relationships | | | | | | | | |
| - Net | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Other | | | 5,539 | | | | 5,494 | |
| Intangible | | | | | | | | |
| Assets - | | | | | | | | |
| Net | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Investments | | | 4,346 | | | | 2,921 | |
| in Equity | | | | | | | | |
| Affiliates | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Other | | | 6,489 | | | | 6,275 | |
| Assets | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| | | $ | 267,556 | | | $ | 268,846 | |
| Total | | | | | | | | |
| Assets | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Liabilities | | | | | | | | |
| and | | | | | | | | |
| Stockholders' | | | | | | | | |
| Equity | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Current | | | | | | | | |
| Liabilities | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Debt | | $ | 9,721 | | | $ | 7,361 | |
| maturing | | | | | | | | |
| within | | | | | | | | |
| one year | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Accounts | | | 18,157 | | | | 21,260 | |
| payable | | | | | | | | |
| and | | | | | | | | |
| accrued | | | | | | | | |
| liabilities | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Advanced | | | 3,943 | | | | 4,170 | |
| billing | | | | | | | | |
| and | | | | | | | | |
| customer | | | | | | | | |
| deposits | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Accrued | | | 1,879 | | | | 1,681 | |
| taxes | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Dividends | | | 2,482 | | | | 2,479 | |
| payable | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| | | | 36,182 | | | | 36,951 | |
| Total | | | | | | | | |
| current | | | | | | | | |
| liabilities | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Long-Term | | | 60,277 | | | | 64,720 | |
| Debt | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Deferred | | | | | | | | |
| Credits | | | | | | | | |
| and | | | | | | | | |
| Other | | | | | | | | |
| Noncurrent | | | | | | | | |
| Liabilities | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Deferred | | | 25,615 | | | | 23,781 | |
| income | | | | | | | | |
| taxes | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Postemployment | | | 27,421 | | | | 27,847 | |
| benefit | | | | | | | | |
| obligation | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Other | | | 14,578 | | | | 13,226 | |
| noncurrent | | | | | | | | |
| liabilities | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| | | | 67,614 | | | | 64,854 | |
| Total | | | | | | | | |
| deferred | | | | | | | | |
| credits | | | | | | | | |
| and | | | | | | | | |
| other | | | | | | | | |
| noncurrent | | | | | | | | |
| liabilities | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Stockholders' | | | | | | | | |
| Equity | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Common | | | | | | | | |
| stock | | | | | | | | |
| ($1 | | | | | | | | |
| par | | | | | | | | |
| value, | | | | | | | | |
| 14,000,000,000 | | | | | | | | |
| authorized | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| at | | | | | | | | |
| June | | | | | | | | |
| 30, | | | | | | | | |
| 2010 | | | | | | | | |
| and | | | | | | | | |
| December | | | | | | | | |
| 31, | | | | | | | | |
| 2009: | | | | | | | | |
| issued | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| | | | 6,495 | | | | 6,495 | |
| 6,495,231,088 | | | | | | | | |
| at June 30, | | | | | | | | |
| 2010 and | | | | | | | | |
| December 31, | | | | | | | | |
| 2009) | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Additional | | | 91,628 | | | | 91,707 | |
| paid-in | | | | | | | | |
| capital | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Retained | | | 40,909 | | | | 39,366 | |
| earnings | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Treasury | | | | | | | | |
| stock | | | | | | | | |
| (586,184,637 | | | | | | | | |
| at June 30, | | | | | | | | |
| 2010 and | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| | | | (21,134 | ) | | | (21,260 | ) |
| 593,300,187 | | | | | | | | |
| at December | | | | | | | | |
| 31, 2009, | | | | | | | | |
| at cost) | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Accumulated | | | (14,852 | ) | | | (14,412 | ) |
| other | | | | | | | | |
| comprehensive | | | | | | | | |
| loss | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Noncontrolling | | | 437 | | | | 425 | |
| interest | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| | | | 103,483 | | | | 102,321 | |
| Total | | | | | | | | |
| stockholders' | | | | | | | | |
| equity | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| | | $ | 267,556 | | | $ | 268,846 | |
| Total | | | | | | | | |
| Liabilities | | | | | | | | |
| and | | | | | | | | |
| Stockholders' | | | | | | | | |
| Equity | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
+----------------+--------+--------+---------+--------+--------+--------+--------+--------+
| Financial | | | | | | |
| Data | | | | | | |
+----------------+--------+------------------+--------+--------+-----------------+--------+
| | | | | | | |
+----------------+--------+------------------+--------+--------+-----------------+--------+
| AT&T | | | | | | |
| Inc. | | | | | | |
+----------------+--------+------------------+--------+--------+-----------------+--------+
| Consolidated | | | | | | |
| Statements | | | | | | |
| of Cash | | | | | | |
| Flows | | | | | | |
+----------------+--------+------------------+--------+--------+-----------------+--------+
| Dollars | | | | | | |
| in | | | | | | |
| millions, | | | | | | |
| increase | | | | | | |
| (decrease) | | | | | | |
| in cash | | | | | | |
| and cash | | | | | | |
| equivalents | | | | | | |
+----------------+--------+------------------+--------+--------+-----------------+--------+
| Unaudited | | | | | | |
+----------------+--------+------------------+--------+--------+-----------------+--------+
| | | Six months ended |
+----------------+--------+---------------------------------------------------------------+
| | | June 30, |
+----------------+--------+---------------------------------------------------------------+
| | | 2010 | | | 2009 | |
+----------------+--------+------------------+--------+--------+-----------------+--------+
| Operating | | | | | | |
| Activities | | | | | | |
+----------------+--------+------------------+--------+--------+-----------------+--------+
| Net | | $ | 6,663 | | | $ | 6,477 | |
| income | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+--------+--------+
| Adjustments | | | | | | | | |
| to | | | | | | | | |
| reconcile | | | | | | | | |
| net income | | | | | | | | |
| to | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+--------+--------+
| net | | | | | | | | |
| cash | | | | | | | | |
| provided | | | | | | | | |
| by | | | | | | | | |
| operating | | | | | | | | |
| activities: | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | | 9,638 | | | | 9,733 | |
| Depreciation | | | | | | | | |
| and | | | | | | | | |
| amortization | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | | (378 | ) | | | (339 | ) |
| Undistributed | | | | | | | | |
| earnings from | | | | | | | | |
| investments | | | | | | | | |
| in equity | | | | | | | | |
| affiliates | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | | 671 | | | | 975 | |
| Bad | | | | | | | | |
| debt | | | | | | | | |
| expense | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | | 2,076 | | | | 746 | |
| Deferred | | | | | | | | |
| income | | | | | | | | |
| tax | | | | | | | | |
| expense | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | | (641 | ) | | | 92 | |
| Net | | | | | | | | |
| (gain) | | | | | | | | |
| loss | | | | | | | | |
| from | | | | | | | | |
| impairment | | | | | | | | |
| and sale | | | | | | | | |
| of | | | | | | | | |
| investments | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | | | | | | | |
| Changes | | | | | | | | |
| in | | | | | | | | |
| operating | | | | | | | | |
| assets | | | | | | | | |
| and | | | | | | | | |
| liabilities: | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | | 394 | | | | 169 | |
| Accounts | | | | | | | | |
| receivable | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | | 389 | | | | (58 | ) |
| Other | | | | | | | | |
| current | | | | | | | | |
| assets | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | | (3,063 | ) | | | (2,054 | ) |
| Accounts | | | | | | | | |
| payable | | | | | | | | |
| and | | | | | | | | |
| accrued | | | | | | | | |
| liabilities | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+--------+--------+
| Net | | | (165 | ) | | | (153 | ) |
| income | | | | | | | | |
| attributable | | | | | | | | |
| to | | | | | | | | |
| noncontrolling | | | | | | | | |
| interest | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | | 226 | | | | 184 | |
| Other | | | | | | | | |
| - net | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+--------+--------+
| Total | | | 9,147 | | | | 9,295 | |
| Adjustments | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+--------+--------+
| Net | | | 15,810 | | | | 15,772 | |
| Cash | | | | | | | | |
| Provided | | | | | | | | |
| by | | | | | | | | |
| Operating | | | | | | | | |
| Activities | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+--------+--------+
| Investing | | | | | | | | |
| Activities | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+--------+--------+
| Construction | | | | | | | | |
| and capital | | | | | | | | |
| expenditures | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | | (7,856 | ) | | | (7,017 | ) |
| Capital | | | | | | | | |
| expenditures | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | | (379 | ) | | | (368 | ) |
| Interest | | | | | | | | |
| during | | | | | | | | |
| construction | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+--------+--------+
| Acquisitions, | | | (2,554 | ) | | | (55 | ) |
| net of cash | | | | | | | | |
| acquired | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+--------+--------+
| Dispositions | | | 14 | | | | 199 | |
+----------------+--------+--------+---------+--------+--------+--------+--------+--------+
| (Purchases) | | | (545 | ) | | | 4 | |
| and sales | | | | | | | | |
| of | | | | | | | | |
| securities, | | | | | | | | |
| net | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+--------+--------+
| Other | | | 17 | | | | 14 | |
+----------------+--------+--------+---------+--------+--------+--------+--------+--------+
| Net | | | (11,303 | ) | | | (7,223 | ) |
| Cash | | | | | | | | |
| Used | | | | | | | | |
| in | | | | | | | | |
| Investing | | | | | | | | |
| Activities | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+--------+--------+
| Financing | | | | | | | | |
| Activities | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+--------+--------+
| Net | | | | | | | | |
| change | | | | | | | | |
| in | | | | | | | | |
| short-term | | | | | | | | |
| borrowings | | | | | | | | |
| with | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+--------+--------+
| original | | | 3,280 | | | | (3,915 | ) |
| maturities | | | | | | | | |
| of three | | | | | | | | |
| months or | | | | | | | | |
| less | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+--------+--------+
| Issuance | | | - | | | | 8,161 | |
| of | | | | | | | | |
| long-term | | | | | | | | |
| debt | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+--------+--------+
| Repayment | | | (4,661 | ) | | | (2,036 | ) |
| of | | | | | | | | |
| long-term | | | | | | | | |
| debt | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+--------+--------+
| Issuance | | | 5 | | | | 4 | |
| of | | | | | | | | |
| treasury | | | | | | | | |
| stock | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+--------+--------+
| Dividends | | | (4,960 | ) | | | (4,834 | ) |
| paid | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+--------+--------+
| Other | | | (535 | ) | | | (381 | ) |
+----------------+--------+--------+---------+--------+--------+--------+--------+--------+
| Net | | | (6,871 | ) | | | (3,001 | ) |
| Cash | | | | | | | | |
| Used | | | | | | | | |
| in | | | | | | | | |
| Financing | | | | | | | | |
| Activities | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+--------+--------+
| Net | | | (2,364 | ) | | | 5,548 | |
| increase | | | | | | | | |
| (decrease) | | | | | | | | |
| in cash | | | | | | | | |
| and cash | | | | | | | | |
| equivalents | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+--------+--------+
| Cash | | | 3,741 | | | | 1,727 | |
| and | | | | | | | | |
| cash | | | | | | | | |
| equivalents | | | | | | | | |
| beginning | | | | | | | | |
| of year | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+--------+--------+
| Cash | | $ | 1,377 | | | $ | 7,275 | |
| and | | | | | | | | |
| Cash | | | | | | | | |
| Equivalents | | | | | | | | |
| End of | | | | | | | | |
| Period | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+--------+--------+
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| Financial | | | | | | | | | | | | | | | | | | |
| Data | | | | | | | | | | | | | | | | | | |
+--------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+------------------+--------+--------+------------------+--------+--------+-----------------+--------+
| | | | | | | | | | | | | | | | | | | |
+--------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+------------------+--------+--------+------------------+--------+--------+-----------------+--------+
| AT&T | | | | | | | | | | | | | | | | | | |
| Inc. | | | | | | | | | | | | | | | | | | |
+--------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+------------------+--------+--------+------------------+--------+--------+-----------------+--------+
| Supplementary Operating and | | | | | | | | | | | | | | | | |
| Financial Data | | | | | | | | | | | | | | | | |
+-----------------------------------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+------------------+--------+--------+------------------+--------+--------+-----------------+--------+
| Dollars in millions except per | | | | | | | | | | | | | | | | |
| share amounts | | | | | | | | | | | | | | | | |
+-----------------------------------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+------------------+--------+--------+------------------+--------+--------+-----------------+--------+
| Unaudited | | Three Months Ended | | Six Months Ended |
+--------------+--------+--------------------------------------------------------------------------------------------------+--------+----------------------------------------------------------------------------------------------------+
| | | 6/30/2010 | | | 6/30/2009 | | | % Chg | | 6/30/2010 | | | 6/30/2009 | | | % Chg |
+--------------+--------+-----------------+--------+--------+-----------------+--------+--------+--------------------------+--------+------------------+--------+--------+------------------+--------+--------+--------------------------+
| | | | | | | | | | | | | | | | | | | |
+--------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+------------------+--------+--------+------------------+--------+--------+-----------------+--------+
| Wireless | | | | | | | | | | | | | | | | | | |
+--------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+------------------+--------+--------+------------------+--------+--------+-----------------+--------+
| Wireless | | | | | | | | | | | | 90,130 | | | | 79,600 | | | | 13.2 | % |
| Customers | | | | | | | | | | | | | | | | | | | | | |
| (000) | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | | 1,562 | | | | 1,368 | | | | 14.2 | % | | | 3,419 | | | | 2,591 | | | | 32.0 | % |
| Net | | | | | | | | | | | | | | | | | | | | | | | | |
| Customer | | | | | | | | | | | | | | | | | | | | | | | | |
| Additions | | | | | | | | | | | | | | | | | | | | | | | | |
| (000) | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | | 1,581 | | | | - | | | | | | | | 1,591 | | | | - | | | | | |
| M&A | | | | | | | | | | | | | | | | | | | | | | | | |
| Activity, | | | | | | | | | | | | | | | | | | | | | | | | |
| Partitioned | | | | | | | | | | | | | | | | | | | | | | | | |
| Customers | | | | | | | | | | | | | | | | | | | | | | | | |
| and Other | | | | | | | | | | | | | | | | | | | | | | | | |
| Adjs. (000) | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| Total | | | 1.29 | % | | | 1.48 | % | | -19 BP | | | | 1.29 | % | | | 1.52 | % | | -23 BP | |
| Churn7 | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+-----------------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+-----------------+--------+
| Postpaid | | | | | | | | | | | | | | | 66,970 | | | | 61,647 | | | | 8.6 | % |
| Customers | | | | | | | | | | | | | | | | | | | | | | | | |
| (000)7 | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | | 496 | | | | 1,128 | | | | -56.0 | % | | | 1,008 | | | | 2,025 | | | | -50.2 | % |
| Net | | | | | | | | | | | | | | | | | | | | | | | | |
| Postpaid | | | | | | | | | | | | | | | | | | | | | | | | |
| Customer | | | | | | | | | | | | | | | | | | | | | | | | |
| Additions | | | | | | | | | | | | | | | | | | | | | | | | |
| (000)7 | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | | 1.01 | % | | | 1.07 | % | | -6 BP | | | | 1.04 | % | | | 1.11 | % | | -7 BP | |
| Postpaid | | | | | | | | | | | | | | | | | | | | | | |
| Churn7 | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+-----------------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+-----------------+--------+
| Licensed | | | | | | | | | | | | | | | 307 | | | | 306 | | | | 0.3 | % |
| POPs | | | | | | | | | | | | | | | | | | | | | | | | |
| (000,000) | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| Prepaid | | | | | | | | | | | | | | | 5,881 | | | | 5,558 | | | | 5.8 | % |
| Customers | | | | | | | | | | | | | | | | | | | | | | | | |
| (000)7 | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | | 300 | | | | (412 | ) | | | | | | | 324 | | | | (567 | ) | | | | |
| Net | | | | | | | | | | | | | | | | | | | | | | | | |
| Prepaid | | | | | | | | | | | | | | | | | | | | | | | | |
| Customer | | | | | | | | | | | | | | | | | | | | | | | | |
| Additions | | | | | | | | | | | | | | | | | | | | | | | | |
| (000)7 | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| Connected | | | | | | | | | | | | | | | 6,682 | | | | 3,109 | | | | | |
| Devices | | | | | | | | | | | | | | | | | | | | | | | | |
| Customers | | | | | | | | | | | | | | | | | | | | | | | | |
| (000)7 | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | | 896 | | | | 304 | | | | | | | | 1,948 | | | | 448 | | | | | |
| Net | | | | | | | | | | | | | | | | | | | | | | | | |
| Connected | | | | | | | | | | | | | | | | | | | | | | | | |
| Devices | | | | | | | | | | | | | | | | | | | | | | | | |
| Customer | | | | | | | | | | | | | | | | | | | | | | | | |
| Additions | | | | | | | | | | | | | | | | | | | | | | | | |
| (000)7 | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| In-Region | | | | | | | | | | | | | | | | | | | | | | | | |
| Wireline | | | | | | | | | | | | | | | | | | | | | | | | |
| 1 | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| Total | | | | | | | | | | | | | | | | | | | | | | | | |
| Consumer | | | | | | | | | | | | | | | | | | | | | | | | |
| Revenue | | | | | | | | | | | | | | | | | | | | | | | | |
| Connections | | | | | | | | | | | | | | | | | | | | | | | | |
| (000) | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| Retail | | | | | | | | | | | | | | | 25,780 | | | | 29,047 | | | | -11.2 | % |
| Consumer | | | | | | | | | | | | | | | | | | | | | | | | |
| Voice | | | | | | | | | | | | | | | | | | | | | | | | |
| Connections | | | | | | | | | | | | | | | | | | | | | | | | |
| 2 | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| Consumer | | | | | | | | | | | | | | | 13,925 | | | | 13,454 | | | | 3.5 | % |
| Wired | | | | | | | | | | | | | | | | | | | | | | | | |
| Broadband | | | | | | | | | | | | | | | | | | | | | | | | |
| Connections | | | | | | | | | | | | | | | | | | | | | | | | |
| 3 | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| Video | | | | | | | | | | | | | | | | | | | | | | | | |
| Connections: | | | | | | | | | | | | | | | | | | | | | | | | |
| 4 | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| Satellite | | | | | | | | | | | | | | | 2,053 | | | | 2,210 | | | | -7.1 | % |
| Connections | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| U-verse | | | | | | | | | | | | | | | 2,504 | | | | 1,577 | | | | 58.8 | % |
| Video | | | | | | | | | | | | | | | | | | | | | | | | |
| Connections | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| Total Consumer Revenue | | | | | | | | | | | | 44,262 | | | | 46,288 | | | | -4.4 | % |
| Connections (000) | | | | | | | | | | | | | | | | | | | | | |
+-----------------------------------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | | (782 | ) | | | (559 | ) | | | -39.9 | % | | | (1,025 | ) | | | (755 | ) | | | -35.8 | % |
| Net | | | | | | | | | | | | | | | | | | | | | | | | |
| Consumer | | | | | | | | | | | | | | | | | | | | | | | | |
| Revenue | | | | | | | | | | | | | | | | | | | | | | | | |
| Connection | | | | | | | | | | | | | | | | | | | | | | | | |
| Changes | | | | | | | | | | | | | | | | | | | | | | | | |
| (000) | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| Broadband | | | | | | | | | | | | | | | | | | | | | | | | |
| and Video | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| Total | | | | | | | | | | | | | | | 17,439 | | | | 16,945 | | | | 2.9 | % |
| Broadband | | | | | | | | | | | | | | | | | | | | | | | | |
| Connections | | | | | | | | | | | | | | | | | | | | | | | | |
| (000) 5 | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| Net | | | (93 | ) | | | 209 | | | | | | | | 185 | | | | 680 | | | | -72.8 | % |
| Broadband | | | | | | | | | | | | | | | | | | | | | | | | |
| Connection | | | | | | | | | | | | | | | | | | | | | | | | |
| Changes | | | | | | | | | | | | | | | | | | | | | | | | |
| (000) 5 | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| Total | | | | | | | | | | | | | | | 4,558 | | | | 3,787 | | | | 20.4 | % |
| Video | | | | | | | | | | | | | | | | | | | | | | | | |
| Connections | | | | | | | | | | | | | | | | | | | | | | | | |
| (000) 4 | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| Net | | | 135 | | | | 253 | | | | -46.6 | % | | | 319 | | | | 552 | | | | -42.2 | % |
| Video | | | | | | | | | | | | | | | | | | | | | | | | |
| Connection | | | | | | | | | | | | | | | | | | | | | | | | |
| Changes | | | | | | | | | | | | | | | | | | | | | | | | |
| (000) 4 | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| AT&T | | | | | | | | | | | | | | | | | | | | | | | | |
| Inc. | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| Construction | | | | | | | | | | | | | | | | | | | | | | | | |
| and capital | | | | | | | | | | | | | | | | | | | | | | | | |
| expenditures | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | $ | 4,709 | | | $ | 3,854 | | | | 22.2 | % | | $ | 7,856 | | | $ | 7,017 | | | | 12.0 | % |
| Capital | | | | | | | | | | | | | | | | | | | | | | | | |
| expenditures | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | $ | 195 | | | $ | 183 | | | | 6.6 | % | | $ | 379 | | | $ | 368 | | | | 3.0 | % |
| Interest | | | | | | | | | | | | | | | | | | | | | | | | |
| during | | | | | | | | | | | | | | | | | | | | | | | | |
| construction | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| Dividends | | $ | 0.4200 | | | $ | 0.4100 | | | | 2.4 | % | | $ | 0.8400 | | | $ | 0.8200 | | | | 2.4 | % |
| Declared | | | | | | | | | | | | | | | | | | | | | | | | |
| per Share | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| End of Period Common Shares | | | | | | | | | | | | 5,909 | | | | 5,900 | | | | 0.2 | % |
| Outstanding (000,000) | | | | | | | | | | | | | | | | | | | | | |
+-----------------------------------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| Debt | | | | | | | | | | | | | | | 40.3 | % | | | 43.7 | % | | -340 BP | |
| Ratio | | | | | | | | | | | | | | | | | | | | | | | |
| 6 | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+-----------------+--------+
| Total | | | | | | | | | | | | | | | 272,450 | | | | 288,660 | | | | -5.6 | % |
| Employees | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
+--------+---------------+
| 1 | In-region |
| | wireline |
| | represents |
| | access |
| | lines |
| | served by |
| | AT&T's |
| | incumbent |
| | local |
| | exchange |
| | companies. |
+--------+---------------+
| 2 | Includes |
| | consumer |
| | U-verse |
| | Voice |
| | over IP |
| | connections. |
+--------+---------------+
| 3 | Consumer |
| | Wired |
| | Broadband |
| | Connections |
| | include DSL |
| | lines, |
| | U-verse |
| | High Speed |
| | Internet |
| | access and |
| | satellite |
| | broadband. |
+--------+---------------+
| 4 | Video |
| | connections |
| | include |
| | sales under |
| | agency |
| | agreements |
| | with |
| | EchoStar |
| | and DirecTV |
| | customers |
| | and U-verse |
| | connections. |
+--------+---------------+
| 5 | Total |
| | broadband |
| | connections |
| | include DSL |
| | lines, |
| | U-verse |
| | High Speed |
| | Internet |
| | access, |
| | satellite |
| | broadband |
| | and 3G |
| | LaptopConnect |
| | cards. |
+--------+---------------+
| 6 | Total |
| | long-term |
| | debt plus |
| | debt |
| | maturing |
| | within |
| | one year |
| | divided |
| | by total |
| | debt plus |
| | total |
| | stockholders' |
| | equity. |
+--------+---------------+
| 7 | Prior |
| | year |
| | amounts |
| | restated |
| | to |
| | conform |
| | to |
| | current |
| | period |
| | reporting |
| | methodology. |
+--------+---------------+
| | Note: |
| | For |
| | the |
| | end of |
| | 2Q10, |
| | total |
| | switched |
| | access |
| | lines |
| | were |
| | 46,558, |
| | retail |
| | business |
| | switched |
| | access |
| | lines |
| | totaled |
| | 19,465, |
| | and |
| | wholesale |
| | and coin |
| | switched |
| | access |
| | lines |
| | totaled |
| | 2,641. |
| | These |
| | include |
| | 1,725 |
| | retail |
| | business |
| | and 102 |
| | wholesale |
| | lines |
| | that are |
| | used |
| | solely by |
| | AT&T or |
| | our |
| | subsidiaries. |
+--------+---------------+
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Non-GAAP | | | | | | | | | | | | | | | |
| Wireless | | | | | | | | | | | | | | | |
| Reconciliation | | | | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| Wireless | | | | | | | | | | | | | | | |
| Segment | | | | | | | | | | | | | | | |
| OIBDA | | | | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| AT&T | | | | | | | | | | | | | | | |
| Inc. | | | | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| Dollars | | | | | | | | | | | | | | | |
| in | | | | | | | | | | | | | | | |
| millions | | | | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| Unaudited | | | | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| | | Three Months Ended |
+----------------+--------+--------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| | | 6/30/2009 | | | 9/30/2009 | | | 12/31/2009 | | | 3/31/2010 | | | 6/30/2010 | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| | | | | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| Service | | $ | 11,960 | | | $ | 12,372 | | | $ | 12,585 | | | $ | 12,850 | | | $ | 13,186 | |
| Revenues | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Equipment | | | 1,262 | | | | 1,255 | | | | 1,232 | | | | 1,047 | | | | 1,056 | |
| Revenues | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 13,222 | | | | 13,627 | | | | 13,817 | | | | 13,897 | | | | 14,242 | |
| Total | | | | | | | | | | | | | | | | | | | | |
| Operating | | | | | | | | | | | | | | | | | | | | |
| Revenues | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Operating | | | | | | | | | | | | | | | | | | | | |
| Expenses | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Operations | | | 8,428 | | | | 8,645 | | | | 8,701 | | | | 8,183 | | | | 8,562 | |
| and | | | | | | | | | | | | | | | | | | | | |
| support | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Depreciation | | | 1,504 | | | | 1,490 | | | | 1,550 | | | | 1,558 | | | | 1,578 | |
| and | | | | | | | | | | | | | | | | | | | | |
| amortization | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 9,932 | | | | 10,135 | | | | 10,251 | | | | 9,741 | | | | 10,140 | |
| Total | | | | | | | | | | | | | | | | | | | | |
| Operating | | | | | | | | | | | | | | | | | | | | |
| Expenses | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Operating | | | 3,290 | | | | 3,492 | | | | 3,566 | | | | 4,156 | | | | 4,102 | |
| Income | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Plus: | | | 1,504 | | | | 1,490 | | | | 1,550 | | | | 1,558 | | | | 1,578 | |
| Depreciation | | | | | | | | | | | | | | | | | | | | |
| and | | | | | | | | | | | | | | | | | | | | |
| amortization | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| OIBDA | | | 4,794 | | | | 4,982 | | | | 5,116 | | | | 5,714 | | | | 5,680 | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| OIBDA | | | 40.1 | % | | | 40.3 | % | | | 40.7 | % | | | 44.5 | % | | | 43.1 | % |
| as a % | | | | | | | | | | | | | | | | | | | | |
| of | | | | | | | | | | | | | | | | | | | | |
| Service | | | | | | | | | | | | | | | | | | | | |
| Revenue | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
OIBDA is defined as operating income (loss) before depreciation and
amortization. EBITDA is defined as Earnings Before Interest, Taxes, Depreciation
and Amortization. This term is often used as a substitute for OIBDA. OIBDA
differs from segment operating income (loss), as calculated in accordance with
generally accepted accounting principles (GAAP), in that it excludes
depreciation and amortization. OIBDA 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. OIBDA is not presented
as an alternative measure of operating results or cash flows from operations, as
determined in accordance with GAAP. Our calculation of OIBDA, as presented, may
differ from similarly titled measures reported by other companies.
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Financial | | | | | | | | | | | | |
| Data | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| AT&T | | | | | | | | | | | | |
| Inc. | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| Non-GAAP | | | | | | | | | | | | |
| Financial | | | | | | | | | | | | |
| Reconciliation | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| Free | | | | | | | | | | | | |
| Cash | | | | | | | | | | | | |
| Flow | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| AT&T | | | | | | | | | | | | |
| Inc. | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| Dollars | | | | | | | | | | | | |
| in | | | | | | | | | | | | |
| Millions | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| Unaudited | | Three Months Ended | | Six Months Ended |
+----------------+--------+--------------------------------------------------------------+--------+--------------------------------------------------------------+
| | | June 30, | | June 30, |
+----------------+--------+--------------------------------------------------------------+--------+--------------------------------------------------------------+
| | | 2009 | | | 2010 | | | 2009 | | | 2010 | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| Net | | $ | 7,862 | | | $ | 8,573 | | | $ | 15,772 | | | $ | 15,810 | |
| cash | | | | | | | | | | | | | | | | |
| provided | | | | | | | | | | | | | | | | |
| by | | | | | | | | | | | | | | | | |
| operating | | | | | | | | | | | | | | | | |
| activities | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Less: | | | (4,037 | ) | | | (4,904 | ) | | | (7,385 | ) | | | (8,235 | ) |
| Construction | | | | | | | | | | | | | | | | |
| and capital | | | | | | | | | | | | | | | | |
| expenditures | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Free | | $ | 3,825 | | | $ | 3,669 | | | $ | 8,387 | | | $ | 7,575 | |
| Cash | | | | | | | | | | | | | | | | |
| Flow | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
Free cash flow is defined as cash from operations minus capital expenditures. We
believe these metrics provide useful information to our investors because
management regularly reviews free cash flow as an important indicator of how
much cash is 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.
+--------------+--------+--------+---------+--------+--------+--------+--------+--------+--------+--------+---------+--------+
| Free | | | | | | | | | |
| Cash | | | | | | | | | |
| Flow | | | | | | | | | |
| After | | | | | | | | | |
| Dividends | | | | | | | | | |
+--------------+--------+------------------+--------+--------+-----------------+--------+--------+------------------+--------+
| AT&T | | | | | | | | | |
| Inc. | | | | | | | | | |
+--------------+--------+------------------+--------+--------+-----------------+--------+--------+------------------+--------+
| Dollars | | | | | | | | | |
| in | | | | | | | | | |
| Millions | | | | | | | | | |
+--------------+--------+------------------+--------+--------+-----------------+--------+--------+------------------+--------+
| Unaudited | | Twelve Months | | | Six Months | | | Six Quarters | |
+--------------+--------+------------------+--------+--------+-----------------+--------+--------+------------------+--------+
| | | Ended | | | Ended | | | Ended | |
+--------------+--------+------------------+--------+--------+-----------------+--------+--------+------------------+--------+
| | | 12/31/2009 | | | 6/30/2010 | | | 6/30/2010 | |
+--------------+--------+------------------+--------+--------+-----------------+--------+--------+------------------+--------+
| | | | | | | | | | |
+--------------+--------+------------------+--------+--------+-----------------+--------+--------+------------------+--------+
| Net | | $ | 34,406 | | | $ | 15,810 | | | $ | 50,216 | |
| cash | | | | | | | | | | | | |
| provided | | | | | | | | | | | | |
| by | | | | | | | | | | | | |
| operating | | | | | | | | | | | | |
| activities | | | | | | | | | | | | |
+--------------+--------+--------+---------+--------+--------+--------+--------+--------+--------+--------+---------+--------+
| | | | | | | | | | | | | |
+--------------+--------+--------+---------+--------+--------+--------+--------+--------+--------+--------+---------+--------+
| Less: | | | (17,294 | ) | | | (8,235 | ) | | | (25,529 | ) |
| Construction | | | | | | | | | | | | |
| and capital | | | | | | | | | | | | |
| expenditures | | | | | | | | | | | | |
+--------------+--------+--------+---------+--------+--------+--------+--------+--------+--------+--------+---------+--------+
| | | | | | | | | | | | | |
+--------------+--------+--------+---------+--------+--------+--------+--------+--------+--------+--------+---------+--------+
| Free | | $ | 17,112 | | | $ | 7,575 | | | $ | 24,687 | |
| Cash | | | | | | | | | | | | |
| Flow | | | | | | | | | | | | |
+--------------+--------+--------+---------+--------+--------+--------+--------+--------+--------+--------+---------+--------+
| | | | | | | | | | | | | |
+--------------+--------+--------+---------+--------+--------+--------+--------+--------+--------+--------+---------+--------+
| Less: | | | (9,670 | ) | | | (4,960 | ) | | | (14,630 | ) |
| Dividends | | | | | | | | | | | | |
| paid | | | | | | | | | | | | |
+--------------+--------+--------+---------+--------+--------+--------+--------+--------+--------+--------+---------+--------+
| | | | | | | | | | | | | |
+--------------+--------+--------+---------+--------+--------+--------+--------+--------+--------+--------+---------+--------+
| Free | | $ | 7,442 | | | $ | 2,615 | | | $ | 10,057 | |
| Cash | | | | | | | | | | | | |
| Flow | | | | | | | | | | | | |
| After | | | | | | | | | | | | |
| Dividends | | | | | | | | | | | | |
+--------------+--------+--------+---------+--------+--------+--------+--------+--------+--------+--------+---------+--------+
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Financial | | | | | | | | | |
| Data | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| AT&T | | | | | | | | | |
| Inc. | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| Non-GAAP | | | | | | | | | |
| Financial | | | | | | | | | |
| Reconciliation | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| Annualized | | | | | | | | | |
| Net | | | | | | | | | |
| Debt-to-EBITDA | | | | | | | | | |
| Ratio | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| AT&T | | | | | | | | | |
| Inc. | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| Dollars | | | | | | | | | |
| in | | | | | | | | | |
| millions | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| Unaudited | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| | | Three Months | | | Three Months | | | 2010 YTD | |
| | | Ended | | | Ended | | | | |
| | | 3/31/10 | | | 6/30/10 | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| | | $ | 30,530 | | | $ | 30,808 | | | $ | 61,338 | |
| Reported | | | | | | | | | | | | |
| Consolidated | | | | | | | | | | | | |
| Revenues | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 24,523 | | | | 24,694 | | | | 49,217 | |
| Total | | | | | | | | | | | | |
| Operating | | | | | | | | | | | | |
| Expenses | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Total | | | 6,007 | | | | 6,114 | | | | 12,121 | |
| Operating | | | | | | | | | | | | |
| Income | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Add | | | 4,800 | | | | 4,838 | | | | 9,638 | |
| Back | | | | | | | | | | | | |
| Depreciation | | | | | | | | | | | | |
| and | | | | | | | | | | | | |
| Amortization | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Total | | | 10,807 | | | | 10,952 | | | | 21,759 | |
| Consolidated | | | | | | | | | | | | |
| EBITDA | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Annualized | | | | | | | | | 43,518 | |
| Consolidated | | | | | | | | | | |
| EBITDA * | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | 9,721 | |
| End-of-period | | | | | | | | | | |
| current debt | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+--------+--------+--------+
| | | | | | | | | | 60,277 | |
| End-of-period | | | | | | | | | | |
| long-term | | | | | | | | | | |
| debt | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+--------+--------+--------+
| Total | | | | | | | | | 69,998 | |
| End-of-Period | | | | | | | | | | |
| Debt | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+--------+--------+--------+
| | | | | | | | | | (1,502 | ) |
| (Premiums) | | | | | | | | | | |
| Discounts | | | | | | | | | | |
| on | | | | | | | | | | |
| long-term | | | | | | | | | | |
| debt | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+--------+--------+--------+
| Normalized | | | | | | | | | 68,496 | |
| Debt | | | | | | | | | | |
| Balance | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+--------+--------+--------+
| Cash | | | | | | | | | 1,377 | |
| and | | | | | | | | | | |
| Cash | | | | | | | | | | |
| Equivalents | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+--------+--------+--------+
| Normalized | | | | | | | | | 67,119 | |
| Net Debt | | | | | | | | | | |
| Balance | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Annualized | | | | | | | | | 1.5 | |
| Net | | | | | | | | | | |
| Debt-to-EBITDA | | | | | | | | | | |
| Ratio | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
*EBITDA is annualized by dividing YTD EBITDA by YTD number of quarters and
multiplying by 4.
EXHIBIT 99.3
OIBDA DISCUSSION
OIBDA is defined as operating income (loss) before depreciation and
amortization. OIBDA margin is calculated as OIBDA divided by service revenues.
OIBDA differs from Segment Operating Income (Loss), as calculated in accordance
with GAAP, in that it excludes depreciation and amortization. OIBDA 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.
OIBDA is not presented as an alternative measure of operating results or cash
flows from operations, as determined in accordance with generally accepted
accounting principles. Our calculation of OIBDA, as presented, may differ from
similarly titled measures reported by other companies.
We believe these measures are relevant and useful information to our investors
as they are part of AT&T Mobility's internal management reporting and planning
processes and are important metrics that AT&T Mobility's management uses to
evaluate the operating performance of its regional operations. These measures
are used by management as a gauge of AT&T Mobility's success in acquiring,
retaining and servicing subscribers because we believe these measures reflect
AT&T Mobility's ability to generate and grow subscriber revenues while providing
a high level of customer service in a cost-effective manner. Management also
uses these measures as a method of comparing AT&T Mobility's performance with
that of many of its competitors. The financial and operating metrics which
affect OIBDA include the key revenue and expense drivers for which AT&T
Mobility's operating managers are responsible and upon which we evaluate their
performance.
OIBDA 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. OIBDA excludes other, net, minority interest in earnings of
consolidated entities and equity in net income (loss) of affiliates, as these do
not reflect the operating results of AT&T Mobility's subscriber base and its
national footprint that AT&T Mobility utilizes to obtain and service its
customers. Equity in net income (loss) of affiliates represents AT&T Mobility's
proportionate share of the net income (loss) of affiliates in which it exercises
significant influence, but does not control. As AT&T Mobility does not control
these entities, our management excludes these results when evaluating the
performance of our primary operations. OIBDA excludes interest expense and the
provision for income taxes. Excluding these items eliminates the expenses
associated with its capitalization and tax structures. Finally, OIBDA excludes
depreciation and amortization, in order to eliminate the impact of capital
investments.
We believe OIBDA as a percentage of service revenues to be a more relevant
measure of AT&T Mobility's operating margin than OIBDA as a percentage of total
revenue. AT&T Mobility generally subsidizes a portion of its handset sales, all
of which are recognized in the period in which AT&T Mobility sells the handset.
This results in a disproportionate impact on its margin in that period.
Management views this equipment subsidy as a cost to acquire or retain a
subscriber, which is recovered through the ongoing service revenue that is
generated by the subscriber. AT&T Mobility also uses service revenues to
calculate margin to facilitate comparison, both internally and externally with
its competitors, as they calculate their margins using services revenue as well.
There are material limitations to using these non-GAAP financial measures. OIBDA
and OIBDA margin, as we have defined them, may not be comparable to similarly
titled measures reported by other companies. Furthermore, these performance
measures do not take into account certain significant items, including
depreciation and amortization, interest expense, tax expense and equity in net
income (loss) of affiliates, which directly affect AT&T Mobility's net income.
Management compensates for these limitations by carefully analyzing how its
competitors present performance measures that are similar in nature to OIBDA as
we present it, and considering the economic effect of the excluded expense items
independently as well as in connection with its analysis of net income as
calculated in accordance with GAAP. OIBDA and OIBDA margin should be considered
in addition to, but not as a substitute for, other measures of financial
performance reported in accordance with GAAP.
FREE CASH FLOW DISCUSSION
Free cash flow is defined as cash from operations minus capital expenditures.
Free cash flow after dividends is defined as cash from operations minus capital
expenditures and dividends. Free cash flow yield is defined as cash from
continuing operations less capital expenditures as a percentage of market
capitalization computed on the last trading day of the quarter. Market
capitalization is computed by multiplying the end of period stock price by the
end of period shares outstanding. We believe these metrics provide useful
information to our investors because management monthly reviews free cash flow
as an important indicator of how much cash is generated by normal business
operations, including capital expenditures, and makes decisions based on it.
Management also views it as a measure of cash available to pay debt and return
cash to shareowners.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR EADXDALAEEFF
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