Attached files
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8-K - EARNINGS 8-K - AT&T INC. | earnings801_8k.htm |
Financial Data
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AT&T Inc.
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Consolidated Statements of Income
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Dollars in millions except per share amounts
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Unaudited
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Three Months Ended
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3/31/2011
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3/31/2010
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% Chg
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Operating Revenues
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Wireless service
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$ | 13,961 | $ | 12,850 | 8.6 | % | ||||||
Data
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7,180 | 6,651 | 8.0 | % | ||||||||
Voice
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6,551 | 7,483 | -12.5 | % | ||||||||
Directory
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868 | 1,041 | -16.6 | % | ||||||||
Other
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2,687 | 2,505 | 7.3 | % | ||||||||
Total Operating Revenues
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31,247 | 30,530 | 2.3 | % | ||||||||
Operating Expenses
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Cost of services and sales (exclusive of depreciation and
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amortization shown separately below)
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13,403 | 12,383 | 8.2 | % | ||||||||
Selling, general and administrative
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7,452 | 7,396 | 0.8 | % | ||||||||
Depreciation and amortization
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4,584 | 4,780 | -4.1 | % | ||||||||
Total Operating Expenses
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25,439 | 24,559 | 3.6 | % | ||||||||
Operating Income
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5,808 | 5,971 | -2.7 | % | ||||||||
Interest Expense
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846 | 765 | 10.6 | % | ||||||||
Equity in Net Income of Affiliates
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249 | 217 | 14.7 | % | ||||||||
Other Income (Expense) - Net
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59 | (22 | ) | - | ||||||||
Income from Continuing Operations Before Income Taxes
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5,270 | 5,401 | -2.4 | % | ||||||||
Income Tax Expense
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1,802 | 2,863 | -37.1 | % | ||||||||
Income from Continuing Operations
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3,468 | 2,538 | 36.6 | % | ||||||||
Income from Discontinued Operations, net of tax
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- | 2 | - | |||||||||
Net Income
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3,468 | 2,540 | 36.5 | % | ||||||||
Less: Net Income Attributable to Noncontrolling Interest
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(60 | ) | (87 | ) | 31.0 | % | ||||||
Net Income Attributable to AT&T
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$ | 3,408 | $ | 2,453 | 38.9 | % | ||||||
Basic Earnings Per Share from Continuing
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Operations Attributable to AT&T
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$ | 0.57 | $ | 0.42 | 35.7 | % | ||||||
Basic Earnings Per Share from Discontinued
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Operations Attributable to AT&T
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- | - | - | |||||||||
Basic Earnings Per Share Attributable to AT&T
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$ | 0.57 | $ | 0.42 | 35.7 | % | ||||||
Weighted Average Common
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Shares Outstanding (000,000)
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5,925 | 5,905 | 0.3 | % | ||||||||
Diluted Earnings Per Share from Continuing
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Operations Attributable to AT&T
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$ | 0.57 | $ | 0.41 | 39.0 | % | ||||||
Diluted Earnings Per Share from Discontinued
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Operations Attributable to AT&T
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- | - | - | |||||||||
Diluted Earnings Per Share Attributable to AT&T
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$ | 0.57 | $ | 0.41 | 39.0 | % | ||||||
Weighted Average Common
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Shares Outstanding with Dilution (000,000)
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5,945 | 5,935 | 0.2 | % | ||||||||
Financial Data
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AT&T Inc.
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Statements of Segment Income
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Dollars in millions
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Unaudited
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Three Months Ended
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Wireless
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3/31/2011
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3/31/2010
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% Chg
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Segment Operating Revenues
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Service
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$ | 13,961 | $ | 12,850 | 8.6 | % | ||||||
Equipment
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1,348 | 1,047 | 28.7 | % | ||||||||
Total Segment Operating Revenues
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15,309 | 13,897 | 10.2 | % | ||||||||
Segment Operating Expenses
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Operations and support
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9,858 | 8,173 | 20.6 | % | ||||||||
Depreciation and amortization
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1,505 | 1,558 | -3.4 | % | ||||||||
Total Segment Operating Expenses
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11,363 | 9,731 | 16.8 | % | ||||||||
Segment Operating Income
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3,946 | 4,166 | -5.3 | % | ||||||||
Equity in Net Income (Loss) of Affiliates
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(4 | ) | 12 | - | ||||||||
Segment Income
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$ | 3,942 | $ | 4,178 | -5.6 | % | ||||||
Segment Operating Income Margin
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25.8 | % | 30.0 | % | ||||||||
Wireline
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Segment Operating Revenues
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Data
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$ | 7,180 | $ | 6,651 | 8.0 | % | ||||||
Voice
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6,551 | 7,483 | -12.5 | % | ||||||||
Other
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1,219 | 1,312 | -7.1 | % | ||||||||
Total Segment Operating Revenues
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14,950 | 15,446 | -3.2 | % | ||||||||
Segment Operating Expenses
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Operations and support
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10,266 | 10,512 | -2.3 | % | ||||||||
Depreciation and amortization
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2,958 | 3,076 | -3.8 | % | ||||||||
Total Segment Operating Expenses
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13,224 | 13,588 | -2.7 | % | ||||||||
Segment Operating Income
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1,726 | 1,858 | -7.1 | % | ||||||||
Equity in Net Income of Affiliates
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- | 5 | - | |||||||||
Segment Income
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$ | 1,726 | $ | 1,863 | -7.4 | % | ||||||
Segment Operating Income Margin
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11.5 | % | 12.0 | % | ||||||||
Advertising Solutions
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Segment Operating Revenues
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$ | 868 | $ | 1,041 | -16.6 | % | ||||||
Segment Operating Expenses
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Operations and support
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573 | 664 | -13.7 | % | ||||||||
Depreciation and amortization
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105 | 138 | -23.9 | % | ||||||||
Total Segment Operating Expenses
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678 | 802 | -15.5 | % | ||||||||
Segment Income
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$ | 190 | $ | 239 | -20.5 | % | ||||||
Segment Income Margin
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21.9 | % | 23.0 | % | ||||||||
Other
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Segment Operating Revenues
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$ | 120 | $ | 146 | -17.8 | % | ||||||
Segment Operating Expenses
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174 | 438 | -60.3 | % | ||||||||
Segment Operating Income (Loss)
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(54 | ) | (292 | ) | 81.5 | % | ||||||
Equity in Net Income of Affiliates
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253 | 200 | 26.5 | % | ||||||||
Segment Income (Loss) from Continuing Operations
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$ | 199 | $ | (92 | ) | - |
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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3/31/11
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12/31/10
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Unaudited
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Assets
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Current Assets
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Cash and cash equivalents
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$ | 1,391 | $ | 1,437 | ||||
Accounts receivable - net of allowances for
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doubtful accounts of $949 and $957
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13,246 | 13,610 | ||||||
Prepaid expenses
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1,674 | 1,458 | ||||||
Deferred income taxes
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1,157 | 1,170 | ||||||
Other current assets
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2,269 | 2,276 | ||||||
Total current assets
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19,737 | 19,951 | ||||||
Property, Plant and Equipment - Net
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103,369 | 103,196 | ||||||
Goodwill
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73,602 | 73,601 | ||||||
Licenses
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50,396 | 50,372 | ||||||
Customer Lists and Relationships - Net
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4,154 | 4,708 | ||||||
Other Intangible Assets - Net
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5,423 | 5,440 | ||||||
Investments in Equity Affiliates
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4,845 | 4,515 | ||||||
Other Assets
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6,559 | 6,705 | ||||||
Total Assets
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$ | 268,085 | $ | 268,488 | ||||
Liabilities and Stockholders' Equity
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Current Liabilities
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Debt maturing within one year
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$ | 6,902 | $ | 7,196 | ||||
Accounts payable and accrued liabilities
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18,349 | 20,055 | ||||||
Advanced billing and customer deposits
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3,959 | 4,086 | ||||||
Accrued taxes
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1,499 | 72 | ||||||
Dividends payable
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2,545 | 2,542 | ||||||
Total current liabilities
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33,254 | 33,951 | ||||||
Long-Term Debt
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58,126 | 58,971 | ||||||
Deferred Credits and Other Noncurrent Liabilities
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Deferred income taxes
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23,149 | 22,070 | ||||||
Postemployment benefit obligation
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28,510 | 28,803 | ||||||
Other noncurrent liabilities
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12,203 | 12,743 | ||||||
Total deferred credits and other noncurrent liabilities
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63,862 | 63,616 | ||||||
Stockholders' Equity
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Common stock
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6,495 | 6,495 | ||||||
Additional paid-in capital
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91,636 | 91,731 | ||||||
Retained earnings
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32,649 | 31,792 | ||||||
Treasury stock
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(20,949 | ) | (21,083 | ) | ||||
Accumulated other comprehensive income
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2,713 | 2,712 | ||||||
Noncontrolling interest
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299 | 303 | ||||||
Total stockholders' equity
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112,843 | 111,950 | ||||||
Total Liabilities and Stockholders' Equity
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$ | 268,085 | $ | 268,488 |
Financial Data
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AT&T Inc.
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Consolidated Statements of Cash Flows
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Dollars in millions
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Unaudited
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Three months ended March 31,
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2011
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2010
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Operating Activities
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Net income
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$ | 3,468 | $ | 2,540 | ||||
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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4,584 | 4,780 | ||||||
Undistributed earnings from investments in equity affiliates
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(233 | ) | (201 | ) | ||||
Provision for uncollectible accounts
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292 | 350 | ||||||
Deferred income tax expense and noncurrent
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unrecognized tax benefits
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731 | 1,609 | ||||||
Net (gain) loss from impairment and sale of investments
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(41 | ) | 50 | |||||
Changes in operating assets and liabilities:
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Accounts receivable
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72 | 395 | ||||||
Other current assets
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(196 | ) | 92 | |||||
Accounts payable and accrued liabilities
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(406 | ) | (2,043 | ) | ||||
Net income attributable to noncontrolling interest
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(60 | ) | (87 | ) | ||||
Other - net
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(479 | ) | (247 | ) | ||||
Total adjustments
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4,264 | 4,698 | ||||||
Net Cash Provided by Operating Activities
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7,732 | 7,238 | ||||||
Investing Activities
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Construction and capital expenditures
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Capital expenditures
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(4,133 | ) | (3,148 | ) | ||||
Interest during construction
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(35 | ) | (184 | ) | ||||
Acquisitions, net of cash acquired
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(54 | ) | (178 | ) | ||||
Dispositions
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11 | 1 | ||||||
(Purchases) and sales of securities, net
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127 | (20 | ) | |||||
Other
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9 | 7 | ||||||
Net Cash Used in Investing Activities
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(4,075 | ) | (3,522 | ) | ||||
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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(36 | ) | 323 | |||||
Repayment of long-term debt
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(1,264 | ) | (2,512 | ) | ||||
Issuance of treasury shares
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18 | 3 | ||||||
Dividends paid
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(2,540 | ) | (2,479 | ) | ||||
Other
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119 | (244 | ) | |||||
Net Cash Used in Financing Activities
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(3,703 | ) | (4,909 | ) | ||||
Net decrease in cash and cash equivalents
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(46 | ) | (1,193 | ) | ||||
Cash and cash equivalents beginning of year
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1,437 | 3,741 | ||||||
Cash and Cash Equivalents End of Period
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$ | 1,391 | $ | 2,548 |
Financial Data
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AT&T Inc.
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Supplementary Operating and Financial Data
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Dollars in millions except per share amounts
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Unaudited
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Three Months Ended | ||||||||||
3/31/2011
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3/31/2010
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% Chg
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Wireless
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Volumes (000)
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Total
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97,519 | 86,987 | 12.1 | % | |||||||
Postpaid6
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68,062 | 65,108 | 4.5 | % | |||||||
Prepaid6
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6,613 | 5,377 | 23.0 | % | |||||||
Reseller6
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12,241 | 10,717 | 14.2 | % | |||||||
Connected Devices6
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10,603 | 5,785 | 83.3 | % | |||||||
Wireless Net Adds (000)
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Total
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1,984 | 1,857 | 6.8 | % | |||||||
Postpaid6
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62 | 512 | -87.9 | % | |||||||
Prepaid6
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85 | 24 | - | ||||||||
Reseller6
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561 | 269 | - | ||||||||
Connected Devices6
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1,276 | 1,052 | 21.3 | % | |||||||
M&A Activity, Partitioned Customers and Other Adjs.
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(1 | ) | 10 | ||||||||
Wireless Churn
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Postpaid Churn6
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1.18 | % | 1.07 | % |
11 BP
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Total Churn6
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1.36 | % | 1.30 | % |
6 BP
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Other
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Licensed POPs (000,000)
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313 | 307 | 2.0 | % | |||||||
In-Region Wireline1
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Voice
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Total Wireline Voice Connections
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42,457 | 47,385 | -10.4 | % | |||||||
Net Change
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(1,106 | ) | (1,103 | ) | -0.3 | % | |||||
Broadband
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Total Wireline Broadband Connections
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16,485 | 16,044 | 2.7 | % | |||||||
Net Change
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175 | 255 | -31.4 | % | |||||||
Video
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U-verse
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3,205 | 2,296 | 39.6 | % | |||||||
Satellite
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1,886 | 2,127 | -11.3 | % | |||||||
Total Video Connections
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5,091 | 4,423 | 15.1 | % | |||||||
Net Change
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174 | 184 | -5.4 | % | |||||||
Consumer Revenue Connections
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Broadband3
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14,515 | 13,989 | 3.8 | % | |||||||
Video Connections4
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5,085 | 4,422 | 15.0 | % | |||||||
Voice2
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23,479 | 26,633 | -11.8 | % | |||||||
Total Consumer Revenue Connections
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43,079 | 45,044 | -4.4 | % | |||||||
Net Change
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(348 | ) | (243 | ) | -43.2 | % | |||||
AT&T Inc.
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Construction and capital expenditures
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Capital expenditures
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$ | 4,133 | $ | 3,148 | 31.3 | % | |||||
Interest during construction
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$ | 35 | $ | 184 | -81.0 | % | |||||
Dividends Declared per Share
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$ | 0.43 | $ | 0.42 | 2.4 | % | |||||
End of Period Common Shares Outstanding (000,000)
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5,918 | 5,909 | 0.2 | % | |||||||
Debt Ratio5
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36.6 | % | 40.5 | % |
-390 BP
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Total Employees
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260,690 | 276,280 | -5.6 | % | |||||||
1
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In-region wireline represents access lines served by AT&T's incumbent local exchange companies.
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2
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Includes consumer U-verse Voice over Internet Protocol connections of 1,861 as of March 31, 2011.
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3
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Consumer wireline broadband connections include DSL lines, U-verse High Speed Internet access and satellite broadband.
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4
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Video connections include sales under agency agreements with EchoStar and DirecTV customers and U-verse connections.
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5
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Total long-term debt plus debt maturing within one year divided by total debt plus total stockholders' equity.
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6
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Prior year amounts restated to conform to current period reporting methodology.
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Note: For the end of 1Q11, total switched access lines were 40,596, retail business switched access lines totaled 16,656, and wholesale
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and coin switched access lines totaled 2,322.
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