Attached files
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|---|---|
| 8-K - AT&T, INC. 2ND QTR 2013 EARNINGS 8-K - AT&T INC. | q2earnings801_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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6/30/2013
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6/30/2012
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% Chg
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6/30/2013
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6/30/2012
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% Chg
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Operating Revenues
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$ | 32,075 | $ | 31,575 | 1.6 | % | $ | 63,431 | $ | 63,397 | 0.1 | % | ||||||||||||
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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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13,270 | 12,254 | 8.3 | % | 25,824 | 25,071 | 3.0 | % | ||||||||||||||||
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Selling, general and administrative
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8,121 | 8,005 | 1.4 | % | 16,454 | 16,349 | 0.6 | % | ||||||||||||||||
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Depreciation and amortization
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4,571 | 4,499 | 1.6 | % | 9,100 | 9,059 | 0.5 | % | ||||||||||||||||
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Total Operating Expenses
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25,962 | 24,758 | 4.9 | % | 51,378 | 50,479 | 1.8 | % | ||||||||||||||||
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Operating Income
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6,113 | 6,817 | -10.3 | % | 12,053 | 12,918 | -6.7 | % | ||||||||||||||||
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Interest Expense
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825 | 941 | -12.3 | % | 1,652 | 1,800 | -8.2 | % | ||||||||||||||||
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Equity in Net Income of Affiliates
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218 | 132 | 65.2 | % | 403 | 355 | 13.5 | % | ||||||||||||||||
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Other Income (Expense) - Net
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288 | 23 | - | 320 | 75 | - | ||||||||||||||||||
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Income Before Income Taxes
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5,794 | 6,031 | -3.9 | % | 11,124 | 11,548 | -3.7 | % | ||||||||||||||||
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Income Tax Expense
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1,914 | 2,066 | -7.4 | % | 3,471 | 3,931 | -11.7 | % | ||||||||||||||||
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Net Income
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3,880 | 3,965 | -2.1 | % | 7,653 | 7,617 | 0.5 | % | ||||||||||||||||
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Less: Net Income Attributable to Noncontrolling Interest
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(58 | ) | (63 | ) | 7.9 | % | (131 | ) | (131 | ) | - | |||||||||||||
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Net Income Attributable to AT&T
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$ | 3,822 | $ | 3,902 | -2.1 | % | $ | 7,522 | $ | 7,486 | 0.5 | % | ||||||||||||
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Basic Earnings Per Share Attributable to AT&T
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$ | 0.71 | $ | 0.67 | 6.0 | % | $ | 1.38 | $ | 1.27 | 8.7 | % | ||||||||||||
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Weighted Average Common
Shares Outstanding (000,000)
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5,381 | 5,855 | -8.1 | % | 5,446 | 5,886 | -7.5 | % | ||||||||||||||||
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Diluted Earnings Per Share Attributable to AT&T
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$ | 0.71 | $ | 0.66 | 7.6 | % | $ | 1.38 | $ | 1.27 | 8.7 | % | ||||||||||||
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Weighted Average Common
Shares Outstanding with Dilution (000,000)
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5,397 | 5,876 | -8.2 | % | 5,463 | 5,907 | -7.5 | % | ||||||||||||||||
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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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6/30/2013
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6/30/2012
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% Chg
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6/30/2013
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6/30/2012
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% Chg
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Segment Operating Revenues
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Data
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$ | 5,356 | $ | 4,471 | 19.8 | % | $ | 10,481 | $ | 8,706 | 20.4 | % | ||||||||||
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Voice, text and other service
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10,014 | 10,294 | -2.7 | % | 19,951 | 20,625 | -3.3 | % | ||||||||||||||
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Equipment
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1,921 | 1,588 | 21.0 | % | 3,550 | 3,158 | 12.4 | % | ||||||||||||||
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Total Segment Operating Revenues
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17,291 | 16,353 | 5.7 | % | 33,982 | 32,489 | 4.6 | % | ||||||||||||||
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Segment Operating Expenses
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Operations and support
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10,770 | 9,590 | 12.3 | % | 20,950 | 19,568 | 7.1 | % | ||||||||||||||
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Depreciation and amortization
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1,843 | 1,696 | 8.7 | % | 3,678 | 3,362 | 9.4 | % | ||||||||||||||
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Total Segment Operating Expenses
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12,613 | 11,286 | 11.8 | % | 24,628 | 22,930 | 7.4 | % | ||||||||||||||
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Segment Operating Income
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4,678 | 5,067 | -7.7 | % | 9,354 | 9,559 | -2.1 | % | ||||||||||||||
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Equity in Net Income (Loss) of Affiliates
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(19 | ) | (15 | ) | -26.7 | % | (37 | ) | (28 | ) | -32.1 | % | ||||||||||
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Segment Income
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$ | 4,659 | $ | 5,052 | -7.8 | % | $ | 9,317 | $ | 9,531 | -2.2 | % | ||||||||||
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Segment Operating Income Margin
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27.1 |
%
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31.0 |
%
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27.5 |
%
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29.4 | % | ||||||||||||||
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Wireline
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Segment Operating Revenues
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Data
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$ | 8,400 | $ | 7,935 | 5.9 | % | $ | 16,562 | $ | 15,735 | 5.3 | % | ||||||||||
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Voice
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5,141 | 5,696 | -9.7 | % | 10,447 | 11,588 | -9.8 | % | ||||||||||||||
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Other
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1,232 | 1,276 | -3.4 | % | 2,419 | 2,513 | -3.7 | % | ||||||||||||||
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Total Segment Operating Revenues
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14,773 | 14,907 | -0.9 | % | 29,428 | 29,836 | -1.4 | % | ||||||||||||||
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Segment Operating Expenses
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Operations and support
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10,417 | 10,201 | 2.1 | % | 20,752 | 20,603 | 0.7 | % | ||||||||||||||
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Depreciation and amortization
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2,722 | 2,766 | -1.6 | % | 5,410 | 5,574 | -2.9 | % | ||||||||||||||
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Total Segment Operating Expenses
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13,139 | 12,967 | 1.3 | % | 26,162 | 26,177 | -0.1 | % | ||||||||||||||
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Segment Operating Income
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1,634 | 1,940 | -15.8 | % | 3,266 | 3,659 | -10.7 | % | ||||||||||||||
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Equity in Net Income (Loss) of Affiliates
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- | (1 | ) | - | 1 | (1 | ) | - | ||||||||||||||
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Segment Income
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$ | 1,634 | $ | 1,939 | -15.7 | % | $ | 3,267 | $ | 3,658 | -10.7 | % | ||||||||||
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Segment Operating Income Margin
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11.1 |
%
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13.0 |
%
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11.1 |
%
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12.3 | % | ||||||||||||||
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Advertising Solutions
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Segment Operating Revenues
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$ | - | $ | 305 | - | $ | - | $ | 1,049 | - | ||||||||||||
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Segment Operating Expenses
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Operations and support
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- | 226 | - | - | 773 | - | ||||||||||||||||
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Depreciation and amortization
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- | 29 | - | - | 106 | - | ||||||||||||||||
| Total Segment Operating Expenses | - | 255 | - | - | 879 | - | ||||||||||||||||
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Segment Income
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$ | - | $ | 50 | - | $ | - | $ | 170 | - | ||||||||||||
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Segment Income Margin
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- | 16.4 |
%
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- | 16.2 | % | ||||||||||||||||
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Other
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Segment Operating Revenues
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$ | 11 | $ | 10 | 10.0 | % | $ | 21 | $ | 23 | -8.7 | % | ||||||||||
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Segment Operating Expenses
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210 | 250 | -16.0 | % | 588 | 493 | 19.3 | % | ||||||||||||||
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Segment Operating Income (Loss)
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(199 | ) | (240 | ) | 17.1 | % | (567 | ) | (470 | ) | -20.6 | % | ||||||||||
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Equity in Net Income of Affiliates
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237 | 148 | 60.1 | % | 439 | 384 | 14.3 | % | ||||||||||||||
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Segment Income (Loss)
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$ | 38 | $ | (92 | ) | - | $ | (128 | ) | $ | (86 | ) | -48.8 | % | ||||||||
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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
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6/30/13
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12/31/12
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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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$ | 4,548 | $ | 4,868 | ||||
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Accounts receivable - net of allowances for doubtful accounts of $520 and $547
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12,508 | 12,657 | ||||||
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Prepaid expenses
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1,038 | 1,035 | ||||||
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Deferred income taxes
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953 | 1,036 | ||||||
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Other current assets
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2,381 | 3,110 | ||||||
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Total current assets
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21,428 | 22,706 | ||||||
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Property, Plant and Equipment - Net
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110,734 | 109,767 | ||||||
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Goodwill
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69,770 | 69,773 | ||||||
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Licenses
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53,665 | 52,352 | ||||||
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Customer Lists and Relationships - Net
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1,015 | 1,391 | ||||||
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Other Intangible Assets - Net
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5,018 | 5,032 | ||||||
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Investments in and Advances to Equity Affiliates
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3,888 | 4,581 | ||||||
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Other Assets
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6,575 | 6,713 | ||||||
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Total Assets
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$ | 272,093 | $ | 272,315 | ||||
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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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$ | 3,256 | $ | 3,486 | ||||
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Accounts payable and accrued liabilities
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19,438 | 20,494 | ||||||
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Advanced billing and customer deposits
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4,029 | 4,225 | ||||||
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Accrued taxes
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2,065 | 1,026 | ||||||
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Dividends payable
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2,401 | 2,556 | ||||||
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Total current liabilities
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31,189 | 31,787 | ||||||
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Long-Term Debt
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71,917 | 66,358 | ||||||
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Deferred Credits and Other Noncurrent Liabilities
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Deferred income taxes
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29,400 | 28,491 | ||||||
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Postemployment benefit obligation
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41,994 | 41,392 | ||||||
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Other noncurrent liabilities
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11,278 | 11,592 | ||||||
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Total deferred credits and other noncurrent liabilities
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82,672 | 81,475 | ||||||
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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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90,985 | 91,038 | ||||||
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Retained earnings
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25,212 | 22,481 | ||||||
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Treasury stock
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(41,819 | ) | (32,888 | ) | ||||
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Accumulated other comprehensive income
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5,107 | 5,236 | ||||||
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Noncontrolling interest
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335 | 333 | ||||||
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Total stockholders' equity
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86,315 | 92,695 | ||||||
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Total Liabilities and Stockholders' Equity
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$ | 272,093 | $ | 272,315 | ||||
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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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Six Months Ended June 30,
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2013
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2012
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Operating Activities
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Net income
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$ | 7,653 | $ | 7,617 | ||||
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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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9,100 | 9,059 | ||||||
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Undistributed earnings from investments in equity affiliates
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(198 | ) | (355 | ) | ||||
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Provision for uncollectible accounts
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439 | 572 | ||||||
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Deferred income tax expense and noncurrent
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unrecognized tax benefits
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926 | (639 | ) | |||||
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Net (gain) loss from sale of investments, net of impairments
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(260 | ) | 2 | |||||
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Changes in operating assets and liabilities:
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Accounts receivable
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(290 | ) | (460 | ) | ||||
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Other current assets
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784 | 1,468 | ||||||
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Accounts payable and accrued liabilities
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(340 | ) | 592 | |||||
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Other - net
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(103 | ) | (531 | ) | ||||
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Total adjustments
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10,058 | 9,708 | ||||||
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Net Cash Provided by Operating Activities
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17,711 | 17,325 | ||||||
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Investing Activities
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Construction and capital expenditures:
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Capital expenditures
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(9,665 | ) | (8,742 | ) | ||||
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Interest during construction
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(140 | ) | (130 | ) | ||||
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Acquisitions, net of cash acquired
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(1,182 | ) | (477 | ) | ||||
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Dispositions
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825 | 800 | ||||||
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Sales (purchases) of securities, net
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- | 124 | ||||||
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Return of advances to and investments in equity affiliates
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301 | - | ||||||
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Other
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(4 | ) | - | |||||
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Net Cash Used in Investing Activities
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(9,865 | ) | (8,425 | ) | ||||
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Financing Activities
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Issuance of other short-term borrowings
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1,476 | - | ||||||
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Repayment of other short-term borrowings
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(233 | ) | - | |||||
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Issuance of long-term debt
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6,416 | 6,935 | ||||||
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Repayment of long-term debt
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(1,823 | ) | (7,035 | ) | ||||
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Purchase of treasury stock
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(9,217 | ) | (4,623 | ) | ||||
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Issuance of treasury stock
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104 | 376 | ||||||
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Dividends paid
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(4,930 | ) | (5,187 | ) | ||||
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Other
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41 | (534 | ) | |||||
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Net Cash Used in Financing Activities
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(8,166 | ) | (10,068 | ) | ||||
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Net decrease in cash and cash equivalents
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(320 | ) | (1,168 | ) | ||||
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Cash and cash equivalents beginning of year
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4,868 | 3,045 | ||||||
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Cash and Cash Equivalents End of Period
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$ | 4,548 | $ | 1,877 | ||||
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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, subscribers and connections in (000s)
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Unaudited
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Three Months Ended
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Six Months Ended
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6/30/2013
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6/30/2012
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% Chg
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6/30/2013
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6/30/2012
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% Chg
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Wireless
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Subscribers and Connections
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Total
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107,884 | 105,206 | 2.5 | % | |||||||||||||||||||||
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Postpaid
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71,278 | 69,666 | 2.3 | % | |||||||||||||||||||||
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Prepaid
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7,084 | 7,473 | -5.2 | % | |||||||||||||||||||||
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Reseller
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14,330 | 14,382 | -0.4 | % | |||||||||||||||||||||
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Connected Devices
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15,192 | 13,685 | 11.0 | % | |||||||||||||||||||||
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Wireless Net Adds
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Total
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632 | 1,266 | -50.1 | % | 923 | 1,992 | -53.7 | % | |||||||||||||||||
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Postpaid
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551 | 320 | 72.2 | % | 847 | 507 | 67.1 | % | |||||||||||||||||
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Prepaid
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11 | 92 | -88.0 | % | (173 | ) | 217 | - | |||||||||||||||||
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Reseller
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(414 | ) | 472 | - | (666 | ) | 656 | - | |||||||||||||||||
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Connected Devices
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484 | 382 | 26.7 | % | 915 | 612 | 49.5 | % | |||||||||||||||||
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M&A Activity, Partitioned Customers and Other Adjs.
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1 | - | - | 4 | (33 | ) | - | ||||||||||||||||||
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Wireless Churn
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Postpaid Churn
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1.02 | % | 0.97 | % |
5 BP
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1.03 | % | 1.03 | % |
0 BP
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Total Churn
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1.36 | % | 1.18 | % |
18 BP
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1.37 | % | 1.32 | % |
5 BP
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Other
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Licensed POPs (000,000)
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317 | 313 | 1.3 | % | |||||||||||||||||||||
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Wireline
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Voice
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Total Wireline Voice Connections1
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30,228 | 34,171 | -11.5 | % | |||||||||||||||||||||
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Net Change
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(935 | ) | (1,035 | ) | 9.7 | % | (1,956 | ) | (2,161 | ) | 9.5 | % | |||||||||||||
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Broadband
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Total Wireline Broadband Connections
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16,453 | 16,434 | 0.1 | % | |||||||||||||||||||||
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Net Change
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(61 | ) | (96 | ) | 36.5 | % | 63 | 7 | - | ||||||||||||||||
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Video
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Total U-verse Video Connections
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5,001 | 4,146 | 20.6 | % | |||||||||||||||||||||
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Net Change
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233 | 155 | 50.3 | % | 465 | 355 | 31.0 | % | |||||||||||||||||
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Consumer Revenue Connections
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Broadband2
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14,660 | 14,517 | 1.0 | % | |||||||||||||||||||||
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U-verse Video Connections1
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4,986 | 4,137 | 20.5 | % | |||||||||||||||||||||
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Voice1,3
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17,362 | 19,865 | -12.6 | % | |||||||||||||||||||||
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Total Consumer Revenue Connections1
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37,008 | 38,519 | -3.9 | % | |||||||||||||||||||||
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Net Change
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(393 | ) | (593 | ) | 33.7 | % | (659 | ) | (987 | ) | 33.2 | % | |||||||||||||
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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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$ | 5,413 | $ | 4,481 | 20.8 | % | $ | 9,665 | $ | 8,742 | 10.6 | % | |||||||||||||
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Interest during construction
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$ | 74 | $ | 65 | 13.8 | % | $ | 140 | $ | 130 | 7.7 | % | |||||||||||||
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Dividends Declared per Share
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$ | 0.45 | $ | 0.44 | 2.3 | % | $ | 0.90 | $ | 0.88 | 2.3 | % | |||||||||||||
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End of Period Common Shares Outstanding (000,000)
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5,335 | 5,805 | -8.1 | % | |||||||||||||||||||||
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Debt Ratio4
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46.6 | % | 38.4 | % |
820 BP
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Total Employees
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245,350 | 242,380 | 1.2 | % | |||||||||||||||||||||
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1
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Prior year amounts restated to conform to current period reporting methodology.
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2
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Consumer wireline broadband connections include DSL lines, U-verse High Speed Internet access and satellite broadband.
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3
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Includes consumer U-verse Voice over Internet Protocol connections of 3,379 as of June 30, 2013.
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4
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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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Note: For the end of 2Q13, total switched access lines were 26,849, retail business switched access lines totaled 10,905, and wholesale,
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national mass markets and coin switched access lines totaled 1,961. Restated switched access lines do not include ISDN lines.
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