Attached files
| file | filename |
|---|---|
| 8-K - AT&T, INC. 3RD 2012 QTR EARNINGS RELEASE 8K - AT&T INC. | q3earnings801_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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Nine Months Ended
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9/30/2012
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9/30/2011
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% Chg
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9/30/2012
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9/30/2011
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% Chg
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Operating Revenues
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Wireless service
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$ | 14,906 | $ | 14,261 | 4.5 | % | $ | 44,237 | $ | 42,379 | 4.4 | % | |||||||||||
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Data
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7,977 | 7,459 | 6.9 | % | 23,695 | 21,979 | 7.8 | % | |||||||||||||||
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Voice
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5,565 | 6,242 | -10.8 | % | 17,155 | 19,132 | -10.3 | % | |||||||||||||||
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Directory
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- | 803 | - | 1,049 | 2,512 | -58.2 | % | ||||||||||||||||
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Other
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3,011 | 2,713 | 11.0 | % | 8,720 | 8,218 | 6.1 | % | |||||||||||||||
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Total Operating Revenues
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31,459 | 31,478 | -0.1 | % | 94,856 | 94,220 | 0.7 | % | |||||||||||||||
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Operating Expenses
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Cost of services and sales (exclusive of depreciation and
amortization shown separately below)
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12,718 | 12,656 | 0.5 | % | 38,000 | 38,225 | -0.6 | % | |||||||||||||||
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Selling, general and administrative
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8,192 | 7,969 | 2.8 | % | 24,330 | 23,983 | 1.4 | % | |||||||||||||||
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Depreciation and amortization
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4,512 | 4,618 | -2.3 | % | 13,571 | 13,804 | -1.7 | % | |||||||||||||||
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Total Operating Expenses
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25,422 | 25,243 | 0.7 | % | 75,901 | 76,012 | -0.1 | % | |||||||||||||||
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Operating Income
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6,037 | 6,235 | -3.2 | % | 18,955 | 18,208 | 4.1 | % | |||||||||||||||
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Interest Expense
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824 | 889 | -7.3 | % | 2,624 | 2,583 | 1.6 | % | |||||||||||||||
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Equity in Net Income of Affiliates
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182 | 193 | -5.7 | % | 537 | 649 | -17.3 | % | |||||||||||||||
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Other Income (Expense) - Net
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47 | 46 | 2.2 | % | 122 | 132 | -7.6 | % | |||||||||||||||
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Income Before Income Taxes
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5,442 | 5,585 | -2.6 | % | 16,990 | 16,406 | 3.6 | % | |||||||||||||||
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Income Tax Expense
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1,741 | 1,899 | -8.3 | % | 5,672 | 5,594 | 1.4 | % | |||||||||||||||
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Net Income
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3,701 | 3,686 | 0.4 | % | 11,318 | 10,812 | 4.7 | % | |||||||||||||||
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Less: Net Income Attributable to Noncontrolling Interest
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(66 | ) | (63 | ) | -4.8 | % | (197 | ) | (190 | ) | -3.7 | % | |||||||||||
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Net Income Attributable to AT&T
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$ | 3,635 | $ | 3,623 | 0.3 | % | $ | 11,121 | $ | 10,622 | 4.7 | % | |||||||||||
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Basic Earnings Per Share Attributable to AT&T
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$ | 0.63 | $ | 0.61 | 3.3 | % | $ | 1.90 | $ | 1.79 | 6.1 | % | |||||||||||
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Weighted Average Common
Shares Outstanding (000,000)
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5,771 | 5,936 | -2.8 | % | 5,848 | 5,931 | -1.4 | % | |||||||||||||||
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Diluted Earnings Per Share Attributable to AT&T
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$ | 0.63 | $ | 0.61 | 3.3 | % | $ | 1.90 | $ | 1.79 | 6.1 | % | |||||||||||
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Weighted Average Common
Shares Outstanding with Dilution (000,000)
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5,792 | 5,954 | -2.7 | % | 5,869 | 5,950 | -1.4 | % | |||||||||||||||
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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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Nine Months Ended
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Wireless
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9/30/2012
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9/30/2011
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% Chg
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9/30/2012
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9/30/2011
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% Chg
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Segment Operating Revenues
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Service
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$ | 14,906 | $ | 14,261 | 4.5 | % | $ | 44,237 | $ | 42,379 | 4.4 | % | |||||||||||
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Equipment
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1,726 | 1,345 | 28.3 | % | 4,884 | 4,140 | 18.0 | % | |||||||||||||||
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Total Segment Operating Revenues
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16,632 | 15,606 | 6.6 | % | 49,121 | 46,519 | 5.6 | % | |||||||||||||||
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Segment Operating Expenses
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Operations and support
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10,549 | 9,376 | 12.5 | % | 30,337 | 29,023 | 4.5 | % | |||||||||||||||
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Depreciation and amortization
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1,730 | 1,620 | 6.8 | % | 5,092 | 4,741 | 7.4 | % | |||||||||||||||
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Total Segment Operating Expenses
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12,279 | 10,996 | 11.7 | % | 35,429 | 33,764 | 4.9 | % | |||||||||||||||
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Segment Operating Income
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4,353 | 4,610 | -5.6 | % | 13,692 | 12,755 | 7.3 | % | |||||||||||||||
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Equity in Net Income (Loss) of Affiliates
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(17 | ) | (8 | ) | - | (45 | ) | (19 | ) | - | |||||||||||||
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Segment Income
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$ | 4,336 | $ | 4,602 | -5.8 | % | $ | 13,647 | $ | 12,736 | 7.2 | % | |||||||||||
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Segment Operating Income Margin
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26.2 | % | 29.5 | % | 27.9 | % | 27.4 | % | |||||||||||||||
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Wireline
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Segment Operating Revenues
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Data
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$ | 7,977 | $ | 7,459 | 6.9 | % | $ | 23,695 | $ | 21,979 | 7.8 | % | |||||||||||
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Voice
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5,565 | 6,242 | -10.8 | % | 17,155 | 19,132 | -10.3 | % | |||||||||||||||
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Other
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1,271 | 1,354 | -6.1 | % | 3,795 | 4,025 | -5.7 | % | |||||||||||||||
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Total Segment Operating Revenues
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14,813 | 15,055 | -1.6 | % | 44,645 | 45,136 | -1.1 | % | |||||||||||||||
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Segment Operating Expenses
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Operations and support
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10,134 | 10,295 | -1.6 | % | 30,516 | 30,752 | -0.8 | % | |||||||||||||||
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Depreciation and amortization
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2,774 | 2,892 | -4.1 | % | 8,348 | 8,726 | -4.3 | % | |||||||||||||||
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Total Segment Operating Expenses
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12,908 | 13,187 | -2.1 | % | 38,864 | 39,478 | -1.6 | % | |||||||||||||||
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Segment Operating Income
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1,905 | 1,868 | 2.0 | % | 5,781 | 5,658 | 2.2 | % | |||||||||||||||
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Equity in Net Income (Loss) of Affiliates
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- | - | - | (1 | ) | - | - | ||||||||||||||||
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Segment Income
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$ | 1,905 | $ | 1,868 | 2.0 | % | $ | 5,780 | $ | 5,658 | 2.2 | % | |||||||||||
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Segment Operating Income Margin
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12.9 | % | 12.4 | % | 12.9 | % | 12.5 | % | |||||||||||||||
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Advertising Solutions
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Segment Operating Revenues
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$ | - | $ | 803 | - | $ | 1,049 | $ | 2,512 | -58.2 | % | ||||||||||||
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Segment Operating Expenses
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Operations and support
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- | 554 | - | 773 | 1,707 | -54.7 | % | ||||||||||||||||
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Depreciation and amortization
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- | 94 | - | 106 | 301 | -64.8 | % | ||||||||||||||||
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Total Segment Operating Expenses
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- | 648 | - | 879 | 2,008 | -56.2 | % | ||||||||||||||||
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Segment Income
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$ | - | $ | 155 | - | $ | 170 | $ | 504 | -66.3 | % | ||||||||||||
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Segment Income Margin
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- | 19.3 | % | 16.2 | % | 20.1 | % | ||||||||||||||||
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Other
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Segment Operating Revenues
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$ | 14 | $ | 14 | - | $ | 41 | $ | 53 | -22.6 | % | ||||||||||||
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Segment Operating Expenses
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235 | 412 | -43.0 | % | 729 | 762 | -4.3 | % | |||||||||||||||
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Segment Operating Income (Loss)
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(221 | ) | (398 | ) | 44.5 | % | (688 | ) | (709 | ) | 3.0 | % | |||||||||||
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Equity in Net Income of Affiliates
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199 | 201 | -1.0 | % | 583 | 668 | -12.7 | % | |||||||||||||||
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Segment Income (Loss)
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$ | (22 | ) | $ | (197 | ) | 88.8 | % | $ | (105 | ) | $ | (41 | ) | - | ||||||||
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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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9/30/12
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12/31/11
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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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$ | 2,217 | $ | 3,185 | ||||
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Accounts receivable - net of allowances for
doubtful accounts of $606 and $878
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12,398 | 13,606 | ||||||
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Prepaid expenses
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1,337 | 1,155 | ||||||
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Deferred income taxes
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1,312 | 1,470 | ||||||
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Other current assets
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1,694 | 3,611 | ||||||
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Total current assets
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18,958 | 23,027 | ||||||
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Property, Plant and Equipment - Net
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108,217 | 107,087 | ||||||
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Goodwill
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69,762 | 70,842 | ||||||
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Licenses
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52,082 | 51,374 | ||||||
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Customer Lists and Relationships - Net
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1,622 | 2,757 | ||||||
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Other Intangible Assets - Net
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5,038 | 5,212 | ||||||
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Investments in and Advances to Equity Affiliates
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4,563 | 3,718 | ||||||
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Other Assets
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6,607 | 6,327 | ||||||
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Total Assets
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$ | 266,849 | $ | 270,344 | ||||
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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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$ | 3,433 | $ | 3,453 | ||||
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Accounts payable and accrued liabilities
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18,936 | 19,858 | ||||||
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Advanced billing and customer deposits
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3,709 | 3,872 | ||||||
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Accrued taxes
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2,209 | 1,003 | ||||||
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Dividends payable
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2,511 | 2,608 | ||||||
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Total current liabilities
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30,798 | 30,794 | ||||||
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Long-Term Debt
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60,314 | 61,300 | ||||||
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Deferred Credits and Other Noncurrent Liabilities
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Deferred income taxes
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29,092 | 25,748 | ||||||
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Postemployment benefit obligation
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33,842 | 34,011 | ||||||
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Other noncurrent liabilities
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11,529 | 12,694 | ||||||
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Total deferred credits and other noncurrent liabilities
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74,463 | 72,453 | ||||||
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Stockholders' Equity
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Common stock
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6,495 | 6,495 | ||||||
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Additional paid-in capital
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90,982 | 91,156 | ||||||
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Retained earnings
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28,907 | 25,453 | ||||||
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Treasury stock
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(28,533 | ) | (20,750 | ) | ||||
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Accumulated other comprehensive income
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3,106 | 3,180 | ||||||
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Noncontrolling interest
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317 | 263 | ||||||
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Total stockholders' equity
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101,274 | 105,797 | ||||||
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Total Liabilities and Stockholders' Equity
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$ | 266,849 | $ | 270,344 | ||||
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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
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Unaudited
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Nine Months Ended September 30,
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2012
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2011
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Operating Activities
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Net income
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$ | 11,318 | $ | 10,812 | ||||
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Adjustments to reconcile net income to
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||||||||
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net cash provided by operating activities:
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Depreciation and amortization
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13,571 | 13,804 | ||||||
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Undistributed earnings from investments in equity affiliates
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(483 | ) | (539 | ) | ||||
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Provision for uncollectible accounts
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835 | 805 | ||||||
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Deferred income tax expense and noncurrent
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unrecognized tax benefits
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3,441 | 4,942 | ||||||
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Net (gain) loss from sale of investments, net of impairments
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(27 | ) | (57 | ) | ||||
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Changes in operating assets and liabilities:
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Accounts receivable
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(450 | ) | (573 | ) | ||||
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Other current assets
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1,459 | 1,342 | ||||||
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Accounts payable and accrued liabilities
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387 | (2,533 | ) | |||||
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Other - net
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(1,107 | ) | (853 | ) | ||||
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Total adjustments
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17,626 | 16,338 | ||||||
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Net Cash Provided by Operating Activities
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28,944 | 27,150 | ||||||
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Investing Activities
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Construction and capital expenditures:
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Capital expenditures
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(13,619 | ) | (14,625 | ) | ||||
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Interest during construction
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(197 | ) | (119 | ) | ||||
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Acquisitions, net of cash acquired
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(551 | ) | (430 | ) | ||||
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Dispositions
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807 | 76 | ||||||
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Sales (purchases) of securities, net
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311 | 45 | ||||||
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Other
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(2 | ) | 28 | |||||
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Net Cash Used in Investing Activities
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(13,251 | ) | (15,025 | ) | ||||
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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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- | (1,620 | ) | |||||
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Issuance of long-term debt
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6,935 | 7,935 | ||||||
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Repayment of long-term debt
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(8,042 | ) | (1,298 | ) | ||||
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Purchase of treasury stock
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(8,374 | ) | - | |||||
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Issuance of treasury stock
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460 | 216 | ||||||
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Dividends paid
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(7,738 | ) | (7,627 | ) | ||||
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Other
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98 | (406 | ) | |||||
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Net Cash Used in Financing Activities
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(16,661 | ) | (2,800 | ) | ||||
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Net (decrease) increase in cash and cash equivalents
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(968 | ) | 9,325 | |||||
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Cash and cash equivalents beginning of year
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3,185 | 1,437 | ||||||
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Cash and Cash Equivalents End of Period
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$ | 2,217 | $ | 10,762 | ||||
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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
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Three Months Ended
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Nine Months Ended
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9/30/2012
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9/30/2011
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% Chg
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9/30/2012
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9/30/2011
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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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105,871 | 100,738 | 5.1 | % | |||||||||||||||||||
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Postpaid
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69,747 | 68,614 | 1.7 | % | |||||||||||||||||||
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Prepaid
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7,545 | 7,059 | 6.9 | % | |||||||||||||||||||
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Reseller
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14,573 | 13,028 | 11.9 | % | |||||||||||||||||||
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Connected Devices
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14,006 | 12,037 | 16.4 | % | |||||||||||||||||||
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Wireless Net Adds (000)
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Total
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678 | 2,123 | -68.1 | % | 2,670 | 5,202 | -48.7 | % | |||||||||||||||
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Postpaid
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151 | 319 | -52.7 | % | 658 | 712 | -7.6 | % | |||||||||||||||
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Prepaid
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77 | 293 | -73.7 | % | 294 | 515 | -42.9 | % | |||||||||||||||
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Reseller
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137 | 473 | -71.0 | % | 793 | 1,282 | -38.1 | % | |||||||||||||||
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Connected Devices
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313 | 1,038 | -69.8 | % | 925 | 2,693 | -65.7 | % | |||||||||||||||
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M&A Activity, Partitioned Customers and Other Adjs.
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(13 | ) | - | - | (46 | ) | - | - | |||||||||||||||
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Wireless Churn
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Postpaid Churn
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1.08 | % | 1.15 | % |
-7 BP
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1.05 | % | 1.16 | % |
-11 BP
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Total Churn
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1.34 | % | 1.28 | % |
6 BP
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1.33 | % | 1.36 | % |
-3 BP
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Other
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Branded Computing Subscribers1
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6,419 | 4,537 | 41.5 | % | |||||||||||||||||||
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Licensed POPs (000,000)
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313 | 313 | 0.0 | % | |||||||||||||||||||
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Wireline
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Voice
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Total Wireline Voice Connections
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35,821 | 40,098 | -10.7 | % | |||||||||||||||||||
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Net Change
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(1,020 | ) | (1,200 | ) | 15.0 | % | (3,191 | ) | (3,465 | ) | 7.9 | % | |||||||||||
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Broadband
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Total Wireline Broadband Connections
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16,392 | 16,476 | -0.5 | % | |||||||||||||||||||
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Net Change2
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(42 | ) | 3 | - | (35 | ) | 167 | - | |||||||||||||||
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Video
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U-verse
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4,344 | 3,583 | 21.2 | % | |||||||||||||||||||
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Satellite
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1,633 | 1,809 | -9.7 | % | |||||||||||||||||||
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Total Video Connections
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5,977 | 5,392 | 10.8 | % | |||||||||||||||||||
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Net Change
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147 | 133 | 10.5 | % | 421 | 475 | -11.4 | % | |||||||||||||||
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Consumer Revenue Connections
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Broadband3
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14,501 | 14,530 | -0.2 | % | |||||||||||||||||||
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Video Connections4
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5,954 | 5,381 | 10.6 | % | |||||||||||||||||||
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Voice5
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19,222 | 21,941 | -12.4 | % | |||||||||||||||||||
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Total Consumer Revenue Connections
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39,677 | 41,852 | -5.2 | % | |||||||||||||||||||
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Net Change
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(518 | ) | (652 | ) | 20.6 | % | (1,589 | ) | (1,575 | ) | -0.9 | % | |||||||||||
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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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$ | 4,877 | $ | 5,220 | -6.6 | % | $ | 13,619 | $ | 14,625 | -6.9 | % | |||||||||||
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Interest during construction
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$ | 67 | $ | 42 | 59.5 | % | $ | 197 | $ | 119 | 65.5 | % | |||||||||||
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Dividends Declared per Share
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$ | 0.44 | $ | 0.43 | 2.3 | % | $ | 1.32 | $ | 1.29 | 2.3 | % | |||||||||||
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End of Period Common Shares Outstanding (000,000)
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5,707 | 5,926 | -3.7 | % | |||||||||||||||||||
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Debt Ratio6
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38.6 | % | 38.5 | % |
10 BP
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Total Employees
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241,130 | 256,210 | -5.9 | % | |||||||||||||||||||
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1
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Branded Computing Subscribers includes tablets, tethering plans, aircards, mobile Wi-Fi hot spots and other data-only devices.
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2
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Prior year amounts restated to conform to current period reporting methodology.
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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
|
Includes consumer U-verse Voice over Internet Protocol connections of 2,733 as of September 30, 2012.
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6
|
Total long-term debt plus debt maturing within one year divided by total debt plus total stockholders' equity.
|
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Note: For the end of 3Q12, total switched access lines were 33,088, retail business switched access lines totaled 14,619, and wholesale
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and coin switched access lines totaled 1,980.
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