AT&T INC. - FORM 8-K - EX-99.1 - AT&T INC. SELECTED FINANCIAL STATEMENTS AND OPERATING DATA

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8-K - EARNINGS 8-K - AT&T INC.	q3earnings801_8k.htm

Financial Data

AT&T Inc.
Consolidated Statements of Income
Dollars in millions except per share amounts
Unaudited	Three Months Ended										Nine Months Ended
		9/30/2011			9/30/2010			% Chg			9/30/2011			9/30/2010			% Chg
Operating Revenues
Wireless service		$	14,261		$	13,675			4.3	%	$	42,379		$	39,711			6.7	%
Data			7,472			6,947			7.6	%		22,008			20,464			7.5	%
Voice			6,243			6,978			-10.5	%		19,136			21,685			-11.8	%
Directory			803			961			-16.4	%		2,512			3,009			-16.5	%
Other			2,699			3,020			-10.6	%		8,185			8,050			1.7	%
Total Operating Revenues			31,478			31,581			-0.3	%		94,220			92,919			1.4	%

Operating Expenses
Cost of services and sales (exclusive of depreciation and amortization shown separately below)			13,165			13,605			-3.2	%		39,900			38,440			3.8	%
Selling, general and administrative			7,460			7,672			-2.8	%		22,308			22,522			-1.0	%
Depreciation and amortization			4,618			4,873			-5.2	%		13,804			14,472			-4.6	%
Total Operating Expenses			25,243			26,150			-3.5	%		76,012			75,434			0.8	%
Operating Income			6,235			5,431			14.8	%		18,208			17,485			4.1	%
Interest Expense			889			729			21.9	%		2,583			2,248			14.9	%
Equity in Net Income of Affiliates			193			217			-11.1	%		649			629			3.2	%
Other Income (Expense) - Net			46			124			-62.9	%		132			825			-84.0	%
Income from Continuing Operations Before Income Taxes			5,585			5,043			10.7	%		16,406			16,691			-1.7	%
Income Tax (Benefit) Expense			1,899			(6,573	)		-			5,594			(1,550	)		-
Income from Continuing Operations			3,686			11,616			-68.3	%		10,812			18,241			-40.7	%
Income from Discontinued Operations, net of tax			-			780			-			-			777			-
Net Income			3,686			12,396			-70.3	%		10,812			19,018			-43.1	%
Less: Net Income Attributable to Noncontrolling Interest			(63	)		(77	)		18.2	%		(190	)		(243	)		21.8	%
Net Income Attributable to AT&T		$	3,623		$	12,319			-70.6	%	$	10,622		$	18,775			-43.4	%


Basic Earnings Per Share from Continuing Operations Attributable to AT&T		$	0.61		$	1.95			-68.7	%	$	1.79		$	3.05			-41.3	%
Basic Earnings Per Share from Discontinued Operations Attributable to AT&T			-			0.13			-			-			0.13			-
Basic Earnings Per Share Attributable to AT&T		$	0.61		$	2.08			-70.7	%	$	1.79		$	3.18			-43.7	%
Weighted Average Common Shares Outstanding (000,000)			5,936			5,909			0.5	%		5,931			5,908			0.4	%

Diluted Earnings Per Share from Continuing Operations Attributable to AT&T		$	0.61		$	1.94			-68.6	%	$	1.79		$	3.03			-40.9	%
Diluted Earnings Per Share from Discontinued Operations Attributable to AT&T			-			0.13			-			-			0.13			-
Diluted Earnings Per Share Attributable to AT&T		$	0.61		$	2.07			-70.5	%	$	1.79		$	3.16			-43.4	%
Weighted Average Common Shares Outstanding with Dilution (000,000)			5,954			5,938			0.3	%		5,950			5,937			0.2	%

Financial Data

AT&T Inc.
Statements of Segment Income
Dollars in millions
Unaudited
	Three Months Ended									Nine Months Ended

Wireless	9/30/2011			9/30/2010			% Chg			9/30/2011			9/30/2010			% Chg
Segment Operating Revenues
Service	$	14,261		$	13,675			4.3	%	$	42,379		$	39,711			6.7	%
Equipment		1,345			1,505			-10.6	%		4,138			3,608			14.7	%
Total Segment Operating Revenues		15,606			15,180			2.8	%		46,517			43,319			7.4	%

Segment Operating Expenses
Operations and support		9,367			10,032			-6.6	%		29,007			26,758			8.4	%
Depreciation and amortization		1,619			1,640			-1.3	%		4,737			4,776			-0.8	%
Total Segment Operating Expenses		10,986			11,672			-5.9	%		33,744			31,534			7.0	%
Segment Operating Income		4,620			3,508			31.7	%		12,773			11,785			8.4	%
Equity in Net Income (Loss) of Affiliates		(7	)		(6	)		-16.7	%		(19	)		14			-
Segment Income	$	4,613		$	3,502			31.7	%	$	12,754		$	11,799			8.1	%

Segment Operating Income Margin		29.6	%		23.1	%					27.5	%		27.2	%

Wireline
Segment Operating Revenues
Data	$	7,472		$	6,947			7.6	%	$	22,008		$	20,464			7.5	%
Voice		6,243			6,978			-10.5	%		19,136			21,685			-11.8	%
Other		1,246			1,379			-9.6	%		3,702			4,023			-8.0	%
Total Segment Operating Revenues		14,961			15,304			-2.2	%		44,846			46,172			-2.9	%

Segment Operating Expenses
Operations and support		10,259			10,220			0.4	%		30,629			31,021			-1.3	%
Depreciation and amortization		2,892			3,099			-6.7	%		8,726			9,280			-6.0	%
Total Segment Operating Expenses		13,151			13,319			-1.3	%		39,355			40,301			-2.3	%
Segment Operating Income		1,810			1,985			-8.8	%		5,491			5,871			-6.5	%
Equity in Net Income of Affiliates		-			2			-			-			7			-
Segment Income	$	1,810		$	1,987			-8.9	%	$	5,491		$	5,878			-6.6	%

Segment Operating Income Margin		12.1	%		13.0	%					12.2	%		12.7	%

Advertising Solutions
Segment Operating Revenues	$	803		$	961			-16.4	%	$	2,512		$	3,009			-16.5	%

Segment Operating Expenses
Operations and support		553			631			-12.4	%		1,706			1,957			-12.8	%
Depreciation and amortization		94			123			-23.6	%		301			393			-23.4	%
Total Segment Operating Expenses		647			754			-14.2	%		2,007			2,350			-14.6	%
Segment Income	$	156		$	207			-24.6	%	$	505		$	659			-23.4	%

Segment Income Margin		19.4	%		21.5	%					20.1	%		21.9	%

Other
Segment Operating Revenues	$	108		$	136			-20.6	%	$	345		$	419			-17.7	%
Segment Operating Expenses		459			405			13.3	%		906			1,249			-27.5	%
Segment Operating Income (Loss)		(351	)		(269	)		-30.5	%		(561	)		(830	)		32.4	%
Equity in Net Income of Affiliates		200			221			-9.5	%		668			608			9.9	%
Segment Income (Loss) from Continuing Operations	$	(151	)	$	(48	)		-		$	107		$	(222	)		-

Financial Data

AT&T Inc.
Consolidated Balance Sheets
Dollars in millions except per share amounts
	9/30/11			12/31/10
	Unaudited

Assets
Current Assets
Cash and cash equivalents	$	10,762		$	1,437
Accounts receivable - net of allowances for
doubtful accounts of $888 and $957		13,377			13,610
Prepaid expenses		1,507			1,458
Deferred income taxes		1,101			1,170
Other current assets		1,858			2,276
Total current assets		28,605			19,951
Property, Plant and Equipment - Net		105,786			103,196
Goodwill		73,590			73,601
Licenses		50,406			50,372
Customer Lists and Relationships - Net		3,175			4,708
Other Intangible Assets - Net		5,394			5,440
Investments in Equity Affiliates		4,483			4,515
Other Assets		6,214			6,705
Total Assets	$	277,653		$	268,488

Liabilities and Stockholders' Equity
Current Liabilities
Debt maturing within one year	$	8,900		$	7,196
Accounts payable and accrued liabilities		17,860			20,055
Advanced billing and customer deposits		3,794			4,086
Accrued taxes		929			72
Dividends payable		2,548			2,542
Total current liabilities		34,031			33,951
Long-Term Debt		62,326			58,971
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes		26,446			22,070
Postemployment benefit obligation		28,190			28,803
Other noncurrent liabilities		12,778			12,743
Total deferred credits and other noncurrent liabilities		67,414			63,616
Stockholders' Equity
Common stock		6,495			6,495
Additional paid-in capital		91,455			91,731
Retained earnings		34,758			31,792
Treasury stock		(20,770	)		(21,083	)
Accumulated other comprehensive income		1,677			2,712
Noncontrolling interest		267			303
Total stockholders' equity		113,882			111,950
Total Liabilities and Stockholders' Equity	$	277,653		$	268,488

Financial Data

AT&T Inc.
Consolidated Statements of Cash Flows
Dollars in millions
Unaudited	Nine months ended September 30,
	2011			2010
Operating Activities
Net income	$	10,812		$	19,018
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization		13,804			14,472
Undistributed earnings from investments in equity affiliates		(539	)		(531	)
Provision for uncollectible accounts		805			973
Deferred income tax expense and noncurrent
unrecognized tax benefits		4,942			(4,184	)
Net gain from impairment and sale of investments		(57	)		(746	)
Income from discontinued operations		-			(777	)
Changes in operating assets and liabilities:
Accounts receivable		(573	)		266
Other current assets		439			495
Accounts payable and accrued liabilities		(1,630	)		(2,861	)
Net income attributable to noncontrolling interest		(190	)		(243	)
Other - net		(663	)		(532	)
Total adjustments		16,338			6,332
Net Cash Provided by Operating Activities		27,150			25,350

Investing Activities
Construction and capital expenditures:
Capital expenditures		(14,625	)		(13,170	)
Interest during construction		(119	)		(577	)
Acquisitions, net of cash acquired		(430	)		(2,615	)
Dispositions		76			1,821
(Purchases) and sales of securities, net		45			(437	)
Other		28			22
Net Cash Used in Investing Activities		(15,025	)		(14,956	)

Financing Activities
Net change in short-term borrowings with
original maturities of three months or less		(1,620	)		(33	)
Issuance of long-term debt		7,935			2,235
Repayment of long-term debt		(1,298	)		(5,280	)
Issuance of treasury shares		216			24
Dividends paid		(7,627	)		(7,436	)
Other		(406	)		(399	)
Net Cash Used in Financing Activities		(2,800	)		(10,889	)
Net increase (decrease) in cash and cash equivalents		9,325			(495	)
Cash and cash equivalents beginning of year		1,437			3,741
Cash and Cash Equivalents End of Period	$	10,762		$	3,246

Financial Data

AT&T Inc.
Supplementary Operating and Financial Data
Dollars in millions except per share amounts
Unaudited			Three Months Ended									Nine Months Ended
			9/30/2011			9/30/2010			% Chg			9/30/2011			9/30/2010			% Chg

Wireless
Volumes (000)
	Total												100,738			92,761			8.6	%
		Postpaid6											68,614			67,688			1.4	%
		Prepaid6											7,059			6,209			13.7	%
		Reseller6											13,028			11,021			18.2	%
		Connected Devices6											12,037			7,843			53.5	%

Wireless Net Adds (000)
	Total			2,123			2,631			-19.3	%		5,202			6,050			-14.0	%
		Postpaid6		319			745			-57.2	%		712			1,753			-59.4	%
		Prepaid6		293			321			-8.7	%		515			645			-20.2	%
		Reseller6		473			406			16.5	%		1,282			545			-
		Connected Devices6		1,038			1,159			-10.4	%		2,693			3,107			-13.3	%
	M&A Activity, Partitioned Customers and Other Adjs.			-			-						-			1,591

Wireless Churn
	Postpaid Churn6			1.15	%		1.14	%	1 BP				1.16	%		1.08	%	8 BP
	Total Churn6			1.28	%		1.32	%	-4 BP				1.36	%		1.30	%	6 BP

Other
	Licensed POPs (000,000)												313			308			1.6	%

In-Region Wireline1
Voice
	Total Wireline Voice Connections												40,098			44,796			-10.5	%
		Net Change		(1,200	)		(1,262	)		4.9	%		(3,465	)		(3,692	)		6.1	%

Broadband
	Total Wireline Broadband Connections												16,476			16,100			2.3	%
		Net Change		3			148			-98.0	%		167			311			-46.3	%

Video
		U-verse											3,583			2,741			30.7	%
		Satellite											1,809			1,994			-9.3	%
	Total Video Connections												5,392			4,735			13.9	%
		Net Change		133			177			-24.9	%		475			496			-4.2	%

Consumer Revenue Connections
	Broadband3												14,530			14,093			3.1	%
	Video Connections4												5,381			4,732			13.7	%
	Voice2												21,941			24,908			-11.9	%
Total Consumer Revenue Connections													41,852			43,733			-4.3	%
	Net Change			(652	)		(529	)		-23.3	%		(1,575	)		(1,555	)		-1.3	%

AT&T Inc.
	Construction and capital expenditures
		Capital expenditures	$	5,220		$	5,314			-1.8	%	$	14,625		$	13,170			11.0	%
		Interest during construction	$	42		$	198			-78.8	%	$	119		$	577			-79.4	%
	Dividends Declared per Share		$	0.43		$	0.42			2.4	%	$	1.29		$	1.26			2.4	%
	End of Period Common Shares Outstanding (000,000)												5,926			5,910			0.3	%
	Debt Ratio5												38.5	%		37.9	%	60 BP
	Total Employees												256,210			267,720			-4.3	%

1	In-region wireline represents access lines served by AT&T's incumbent local exchange companies.
2	Includes consumer U-verse Voice over Internet Protocol connections of 2,142 as of September 30, 2011.
3	Consumer wireline 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 long-term debt plus debt maturing within one year divided by total debt plus total stockholders' equity.
6	Prior year amounts restated to conform to current period reporting methodology.
	Note: For the end of 3Q11, total switched access lines were 37,956, retail business switched access lines totaled 15,951, and wholesale
		and coin switched access lines totaled 2,206.

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AT&T INC. Reports

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AT&T INC. - FORM 8-K - EX-99.1 - AT&T INC. SELECTED FINANCIAL STATEMENTS AND OPERATING DATA - October 20, 2011

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AT&T INC. Reports

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