Attached files
| file | filename |
|---|---|
| 8-K - EARNINGS 801 8-K - AT&T INC. | earning801_8k.htm |
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Financial Data
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AT&T Inc.
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Consolidated Statements of Income
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Dollars in millions except per share amounts
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Unaudited
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Three Months Ended
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Six Months Ended
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||||||||||||||||||||||
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6/30/2010
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6/30/2009
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% Chg
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6/30/2010
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6/30/2009
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% Chg
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Operating Revenues
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Wireless service
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$ | 13,186 | $ | 11,960 | 10.3 | % | $ | 26,036 | $ | 23,606 | 10.3 | % | ||||||||||||
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Voice
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7,219 | 8,255 | -12.5 | % | 14,698 | 16,758 | -12.3 | % | ||||||||||||||||
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Data
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6,848 | 6,323 | 8.3 | % | 13,479 | 12,605 | 6.9 | % | ||||||||||||||||
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Directory
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1,007 | 1,211 | -16.8 | % | 2,048 | 2,460 | -16.7 | % | ||||||||||||||||
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Other
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2,548 | 2,865 | -11.1 | % | 5,077 | 5,642 | -10.0 | % | ||||||||||||||||
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Total Operating Revenues
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30,808 | 30,614 | 0.6 | % | 61,338 | 61,071 | 0.4 | % | ||||||||||||||||
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Operating Expenses
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Cost of services and sales (exclusive of
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depreciation and amortization shown separately below)
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12,381 | 12,557 | -1.4 | % | 24,716 | 24,758 | -0.2 | % | ||||||||||||||||
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Selling, general and administrative
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7,475 | 7,682 | -2.7 | % | 14,863 | 15,340 | -3.1 | % | ||||||||||||||||
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Depreciation and amortization
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4,838 | 4,875 | -0.8 | % | 9,638 | 9,733 | -1.0 | % | ||||||||||||||||
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Total Operating Expenses
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24,694 | 25,114 | -1.7 | % | 49,217 | 49,831 | -1.2 | % | ||||||||||||||||
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Operating Income
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6,114 | 5,500 | 11.2 | % | 12,121 | 11,240 | 7.8 | % | ||||||||||||||||
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Interest Expense
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754 | 876 | -13.9 | % | 1,519 | 1,722 | -11.8 | % | ||||||||||||||||
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Equity in Net Income of Affiliates
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195 | 231 | -15.6 | % | 412 | 368 | 12.0 | % | ||||||||||||||||
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Other Income (Expense) - Net
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723 | 30 | - | 700 | 15 | - | ||||||||||||||||||
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Income from Continuing Operations Before Income Taxes
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6,278 | 4,885 | 28.5 | % | 11,714 | 9,901 | 18.3 | % | ||||||||||||||||
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Income Taxes
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2,173 | 1,612 | 34.8 | % | 5,048 | 3,423 | 47.5 | % | ||||||||||||||||
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Income from Continuing Operations
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4,105 | 3,273 | 25.4 | % | 6,666 | 6,478 | 2.9 | % | ||||||||||||||||
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Income (Loss) from Discontinued Operations, net of tax
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(4 | ) | 3 | - | (3 | ) | (1 | ) | - | |||||||||||||||
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Net Income
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4,101 | 3,276 | 25.2 | % | 6,663 | 6,477 | 2.9 | % | ||||||||||||||||
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Less: Net Income Attributable to Noncontrolling Interest
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(78 | ) | (78 | ) | 0.0 | % | (165 | ) | (153 | ) | -7.8 | % | ||||||||||||
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Net Income Attributable to AT&T
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$ | 4,023 | $ | 3,198 | 25.8 | % | $ | 6,498 | $ | 6,324 | 2.8 | % | ||||||||||||
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Basic Earnings Per Share from Continuing
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Operations Attributable to AT&T
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$ | 0.68 | $ | 0.54 | 25.9 | % | $ | 1.10 | $ | 1.07 | 2.8 | % | ||||||||||||
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Basic Earnings Per Share from Discontinued
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Operations Attributable to AT&T
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- | - | - | - | - | - | ||||||||||||||||||
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Basic Earnings Per Share Attributable to AT&T
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$ | 0.68 | $ | 0.54 | 25.9 | % | $ | 1.10 | $ | 1.07 | 2.8 | % | ||||||||||||
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Weighted Average Common
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Shares Outstanding (000,000)
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5,909 | 5,900 | 0.2 | % | 5,907 | 5,898 | 0.2 | % | ||||||||||||||||
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Diluted Earnings Per Share from Continuing
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Operations Attributable to AT&T
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$ | 0.68 | $ | 0.54 | 25.9 | % | $ | 1.10 | $ | 1.07 | 2.8 | % | ||||||||||||
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Diluted Earnings Per Share from Discontinued
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Operations Attributable to AT&T
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- | - | - | - | - | - | ||||||||||||||||||
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Diluted Earnings Per Share Attributable to AT&T
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$ | 0.68 | $ | 0.54 | 25.9 | % | $ | 1.10 | $ | 1.07 | 2.8 | % | ||||||||||||
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Weighted Average Common
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Shares Outstanding with Dilution (000,000)
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5,937 | 5,923 | 0.2 | % | 5,936 | 5,923 | 0.2 | % | ||||||||||||||||
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Financial Data
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AT&T Inc.
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Statements of Segment Income
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Dollars in millions
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Unaudited
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Three Months Ended
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Six Months Ended
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Wireless
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6/30/2010
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6/30/2009
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% Chg
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6/30/2010
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6/30/2009
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% Chg
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Segment Operating Revenues
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Service
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$ | 13,186 | $ | 11,960 | 10.3 | % | $ | 26,036 | $ | 23,606 | 10.3 | % | ||||||||||||
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Equipment
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1,056 | 1,262 | -16.3 | % | 2,103 | 2,454 | -14.3 | % | ||||||||||||||||
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Total Segment Operating Revenues
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14,242 | 13,222 | 7.7 | % | 28,139 | 26,060 | 8.0 | % | ||||||||||||||||
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Segment Operating Expenses
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Operations and support
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8,562 | 8,428 | 1.6 | % | 16,745 | 16,314 | 2.6 | % | ||||||||||||||||
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Depreciation and amortization
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1,578 | 1,504 | 4.9 | % | 3,136 | 3,003 | 4.4 | % | ||||||||||||||||
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Total Segment Operating Expenses
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10,140 | 9,932 | 2.1 | % | 19,881 | 19,317 | 2.9 | % | ||||||||||||||||
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Segment Operating Income
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4,102 | 3,290 | 24.7 | % | 8,258 | 6,743 | 22.5 | % | ||||||||||||||||
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Equity in Net Income of Affiliates
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7 | - | - | 20 | - | - | ||||||||||||||||||
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Segment Income
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$ | 4,109 | $ | 3,290 | 24.9 | % | $ | 8,278 | $ | 6,743 | 22.8 | % | ||||||||||||
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Segment Operating Income Margin
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28.8 | % | 24.9 | % | 29.3 | % | 25.9 | % | ||||||||||||||||
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Wireline
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Segment Operating Revenues
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Voice
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$ | 7,219 | $ | 8,255 | -12.5 | % | $ | 14,698 | $ | 16,758 | -12.3 | % | ||||||||||||
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Data
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6,848 | 6,323 | 8.3 | % | 13,479 | 12,605 | 6.9 | % | ||||||||||||||||
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Other
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1,329 | 1,411 | -5.8 | % | 2,640 | 2,788 | -5.3 | % | ||||||||||||||||
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Total Segment Operating Revenues
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15,396 | 15,989 | -3.7 | % | 30,817 | 32,151 | -4.1 | % | ||||||||||||||||
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Segment Operating Expenses
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Operations and support
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10,389 | 10,924 | -4.9 | % | 21,006 | 21,856 | -3.9 | % | ||||||||||||||||
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Depreciation and amortization
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3,123 | 3,194 | -2.2 | % | 6,219 | 6,368 | -2.3 | % | ||||||||||||||||
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Total Segment Operating Expenses
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13,512 | 14,118 | -4.3 | % | 27,225 | 28,224 | -3.5 | % | ||||||||||||||||
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Segment Operating Income
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1,884 | 1,871 | 0.7 | % | 3,592 | 3,927 | -8.5 | % | ||||||||||||||||
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Equity in Net Income of Affiliates
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- | 4 | - | 5 | 7 | -28.6 | % | |||||||||||||||||
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Segment Income
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$ | 1,884 | $ | 1,875 | 0.5 | % | $ | 3,597 | $ | 3,934 | -8.6 | % | ||||||||||||
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Segment Operating Income Margin
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12.2 | % | 11.7 | % | 11.7 | % | 12.2 | % | ||||||||||||||||
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Advertising Solutions
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Segment Operating Revenues
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$ | 1,007 | $ | 1,211 | -16.8 | % | $ | 2,048 | $ | 2,460 | -16.7 | % | ||||||||||||
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Segment Operating Expenses
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Operations and support
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673 | 706 | -4.7 | % | 1,348 | 1,427 | -5.5 | % | ||||||||||||||||
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Depreciation and amortization
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132 | 166 | -20.5 | % | 270 | 342 | -21.1 | % | ||||||||||||||||
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Total Segment Operating Expenses
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805 | 872 | -7.7 | % | 1,618 | 1,769 | -8.5 | % | ||||||||||||||||
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Segment Operating Income
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202 | 339 | -40.4 | % | 430 | 691 | -37.8 | % | ||||||||||||||||
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Equity in Net Income (Loss) of Affiliates
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- | - | - | - | - | - | ||||||||||||||||||
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Segment Income
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$ | 202 | $ | 339 | -40.4 | % | $ | 430 | $ | 691 | -37.8 | % | ||||||||||||
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Segment Income Margin
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20.1 | % | 28.0 | % | 21.0 | % | 28.1 | % | ||||||||||||||||
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Other
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Segment Operating Revenues
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$ | 163 | $ | 192 | -15.1 | % | $ | 334 | $ | 400 | -16.5 | % | ||||||||||||
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Segment Operating Expenses
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237 | 192 | 23.4 | % | 493 | 521 | -5.4 | % | ||||||||||||||||
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Segment Operating Income (Loss)
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(74 | ) | - | - | (159 | ) | (121 | ) | -31.4 | % | ||||||||||||||
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Equity in Net Income of Affiliates
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188 | 226 | -16.8 | % | 387 | 360 | 7.5 | % | ||||||||||||||||
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Segment Income from Continuing Operations
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$ | 114 | $ | 226 | -49.6 | % | $ | 228 | $ | 239 | -4.6 | % | ||||||||||||
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Segment Income Margin
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69.9 | % | - | 68.3 | % | 59.8 | % | |||||||||||||||||
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Financial Data
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AT&T Inc.
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Consolidated Balance Sheets
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Dollars in millions except per share amounts
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6/30/10
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12/31/09
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Unaudited
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Assets
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Current Assets
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Cash and cash equivalents
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$ | 1,377 | $ | 3,741 | ||||
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Accounts receivable - net of allowances for
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doubtful accounts of $1,084 and $1,202
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13,780 | 14,845 | ||||||
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Prepaid expenses
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1,666 | 1,562 | ||||||
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Deferred income taxes
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1,225 | 1,247 | ||||||
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Other current assets
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3,344 | 3,792 | ||||||
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Total current assets
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21,392 | 25,187 | ||||||
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Property, plant and equipment
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236,187 | 230,295 | ||||||
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Less: accumulated depreciation and amortization
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(135,885 | ) | (130,242 | ) | ||||
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Property, Plant and Equipment - Net
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100,302 | 100,053 | ||||||
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Goodwill
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73,484 | 72,782 | ||||||
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Licenses
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49,957 | 48,741 | ||||||
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Customer Lists and Relationships - Net
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6,047 | 7,393 | ||||||
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Other Intangible Assets - Net
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5,539 | 5,494 | ||||||
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Investments in Equity Affiliates
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4,346 | 2,921 | ||||||
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Other Assets
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6,489 | 6,275 | ||||||
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Total Assets
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$ | 267,556 | $ | 268,846 | ||||
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Liabilities and Stockholders' Equity
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Current Liabilities
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Debt maturing within one year
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$ | 9,721 | $ | 7,361 | ||||
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Accounts payable and accrued liabilities
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18,157 | 21,260 | ||||||
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Advanced billing and customer deposits
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3,943 | 4,170 | ||||||
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Accrued taxes
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1,879 | 1,681 | ||||||
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Dividends payable
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2,482 | 2,479 | ||||||
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Total current liabilities
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36,182 | 36,951 | ||||||
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Long-Term Debt
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60,277 | 64,720 | ||||||
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Deferred Credits and Other Noncurrent Liabilities
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Deferred income taxes
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25,615 | 23,781 | ||||||
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Postemployment benefit obligation
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27,421 | 27,847 | ||||||
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Other noncurrent liabilities
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14,578 | 13,226 | ||||||
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Total deferred credits and other noncurrent liabilities
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67,614 | 64,854 | ||||||
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Stockholders' Equity
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Common stock ($1 par value, 14,000,000,000 authorized
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at June 30, 2010 and December 31, 2009: issued
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6,495,231,088 at June 30, 2010 and December 31, 2009)
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6,495 | 6,495 | ||||||
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Additional paid-in capital
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91,628 | 91,707 | ||||||
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Retained earnings
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40,909 | 39,366 | ||||||
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Treasury stock (586,184,637 at June 30, 2010 and
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593,300,187 at December 31, 2009, at cost)
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(21,134 | ) | (21,260 | ) | ||||
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Accumulated other comprehensive loss
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(14,852 | ) | (14,412 | ) | ||||
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Noncontrolling interest
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437 | 425 | ||||||
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Total stockholders' equity
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103,483 | 102,321 | ||||||
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Total Liabilities and Stockholders' Equity
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$ | 267,556 | $ | 268,846 | ||||
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Financial Data
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AT&T Inc.
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Consolidated Statements of Cash Flows
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Dollars in millions, increase (decrease) in cash and cash equivalents
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Unaudited
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Six months ended
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June 30,
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2010
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2009
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Operating Activities
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Net income
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$ | 6,663 | $ | 6,477 | ||||
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Adjustments to reconcile net income to
|
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net cash provided by operating activities:
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Depreciation and amortization
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9,638 | 9,733 | ||||||
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Undistributed earnings from investments in equity affiliates
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(378 | ) | (339 | ) | ||||
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Bad debt expense
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671 | 975 | ||||||
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Deferred income tax expense
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2,076 | 746 | ||||||
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Net (gain) loss from impairment and sale of investments
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(641 | ) | 92 | |||||
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Changes in operating assets and liabilities:
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Accounts receivable
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394 | 169 | ||||||
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Other current assets
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389 | (58 | ) | |||||
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Accounts payable and accrued liabilities
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(3,063 | ) | (2,054 | ) | ||||
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Net income attributable to noncontrolling interest
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(165 | ) | (153 | ) | ||||
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Other - net
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226 | 184 | ||||||
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Total Adjustments
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9,147 | 9,295 | ||||||
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Net Cash Provided by Operating Activities
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15,810 | 15,772 | ||||||
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Investing Activities
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Construction and capital expenditures
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Capital expenditures
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(7,856 | ) | (7,017 | ) | ||||
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Interest during construction
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(379 | ) | (368 | ) | ||||
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Acquisitions, net of cash acquired
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(2,554 | ) | (55 | ) | ||||
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Dispositions
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14 | 199 | ||||||
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(Purchases) and sales of securities, net
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(545 | ) | 4 | |||||
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Other
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17 | 14 | ||||||
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Net Cash Used in Investing Activities
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(11,303 | ) | (7,223 | ) | ||||
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Financing Activities
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Net change in short-term borrowings with
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original maturities of three months or less
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3,280 | (3,915 | ) | |||||
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Issuance of long-term debt
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- | 8,161 | ||||||
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Repayment of long-term debt
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(4,661 | ) | (2,036 | ) | ||||
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Issuance of treasury stock
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5 | 4 | ||||||
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Dividends paid
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(4,960 | ) | (4,834 | ) | ||||
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Other
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(535 | ) | (381 | ) | ||||
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Net Cash Used in Financing Activities
|
(6,871 | ) | (3,001 | ) | ||||
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Net increase (decrease) in cash and cash equivalents
|
(2,364 | ) | 5,548 | |||||
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Cash and cash equivalents beginning of year
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3,741 | 1,727 | ||||||
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Cash and Cash Equivalents End of Period
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$ | 1,377 | $ | 7,275 | ||||
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Financial Data
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AT&T Inc.
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Supplementary Operating and Financial Data
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Dollars in millions except per share amounts
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Unaudited
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||||||||||
|
6/30/2010
|
6/30/2009
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% Chg
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6/30/2010
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6/30/2009
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% Chg
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Wireless
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Wireless Customers (000)
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90,130 | 79,600 | 13.2 | % | ||||||||||||||||||||
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Net Customer Additions (000)
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1,562 | 1,368 | 14.2 | % | 3,419 | 2,591 | 32.0 | % | ||||||||||||||||
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M&A Activity, Partitioned Customers and Other Adjs. (000)
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1,581 | - | 1,591 | - | ||||||||||||||||||||
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Total Churn7
|
1.29 | % | 1.48 | % |
-19 BP
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1.29 | % | 1.52 | % |
-23 BP
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Postpaid Customers (000)7
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66,970 | 61,647 | 8.6 | % | ||||||||||||||||||||
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Net Postpaid Customer Additions (000)7
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496 | 1,128 | -56.0 | % | 1,008 | 2,025 | -50.2 | % | ||||||||||||||||
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Postpaid Churn7
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1.01 | % | 1.07 | % |
-6 BP
|
1.04 | % | 1.11 | % |
-7 BP
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Licensed POPs (000,000)
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307 | 306 | 0.3 | % | ||||||||||||||||||||
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Prepaid Customers (000)7
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5,881 | 5,558 | 5.8 | % | ||||||||||||||||||||
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Net Prepaid Customer Additions (000)7
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300 | (412 | ) | 324 | (567 | ) | ||||||||||||||||||
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Connected Devices Customers (000)7
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6,682 | 3,109 | ||||||||||||||||||||||
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Net Connected Devices Customer Additions (000)7
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896 | 304 | 1,948 | 448 | ||||||||||||||||||||
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In-Region Wireline 1
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Total Consumer Revenue Connections (000)
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Retail Consumer Voice Connections 2
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25,780 | 29,047 | -11.2 | % | ||||||||||||||||||||
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Consumer Wired Broadband Connections 3
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13,925 | 13,454 | 3.5 | % | ||||||||||||||||||||
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Video Connections: 4
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Satellite Connections
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2,053 | 2,210 | -7.1 | % | ||||||||||||||||||||
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U-verse Video Connections
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2,504 | 1,577 | 58.8 | % | ||||||||||||||||||||
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Total Consumer Revenue Connections (000)
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44,262 | 46,288 | -4.4 | % | ||||||||||||||||||||
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Net Consumer Revenue Connection Changes (000)
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(782 | ) | (559 | ) | -39.9 | % | (1,025 | ) | (755 | ) | -35.8 | % | ||||||||||||
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Broadband and Video
|
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Total Broadband Connections (000) 5
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17,439 | 16,945 | 2.9 | % | ||||||||||||||||||||
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Net Broadband Connection Changes (000) 5
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(93 | ) | 209 | 185 | 680 | -72.8 | % | |||||||||||||||||
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Total Video Connections (000) 4
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4,558 | 3,787 | 20.4 | % | ||||||||||||||||||||
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Net Video Connection Changes (000) 4
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135 | 253 | -46.6 | % | 319 | 552 | -42.2 | % | ||||||||||||||||
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AT&T Inc.
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Construction and capital expenditures
|
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Capital expenditures
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$ | 4,709 | $ | 3,854 | 22.2 | % | $ | 7,856 | $ | 7,017 | 12.0 | % | ||||||||||||
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Interest during construction
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$ | 195 | $ | 183 | 6.6 | % | $ | 379 | $ | 368 | 3.0 | % | ||||||||||||
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Dividends Declared per Share
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$ | 0.4200 | $ | 0.4100 | 2.4 | % | $ | 0.8400 | $ | 0.8200 | 2.4 | % | ||||||||||||
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End of Period Common Shares Outstanding (000,000)
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5,909 | 5,900 | 0.2 | % | ||||||||||||||||||||
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Debt Ratio 6
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40.3 | % | 43.7 | % |
-340 BP
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Total Employees
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272,450 | 288,660 | -5.6 | % | ||||||||||||||||||||
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1
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In-region wireline represents access lines served by AT&T's incumbent local exchange companies.
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2
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Includes consumer U-verse Voice over IP connections.
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3
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Consumer Wired Broadband Connections include DSL lines, U-verse High Speed Internet access and satellite broadband.
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4
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Video connections include sales under agency agreements with EchoStar and DirecTV customers and U-verse connections.
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5
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Total broadband connections include DSL lines, U-verse High Speed Internet access, satellite broadband and 3G LaptopConnect cards.
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6
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Total long-term debt plus debt maturing within one year divided by total debt plus total stockholders' equity.
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7
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Prior year amounts restated to conform to current period reporting methodology.
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Note: For the end of 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.
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