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

Attached files

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8-K - AT&T INC. 4TH QUARTER 2015 EARNINGS RELEASE - AT&T INC.	q4earnings801_8k.htm

Financial Data

AT&T Inc.
Consolidated Statements of Income
Dollars in millions except per share amounts
Unaudited	Three Months Ended									Twelve Months Ended
	12/31/2015			12/31/2014			% Chg			12/31/2015			12/31/2014			% Chg

Operating Revenues
Service	$	37,635		$	29,315			28.4	%	$	131,677		$	118,437			11.2	%
Equipment		4,484			5,124			-12.5	%		15,124			14,010			8.0	%
Total Operating Revenues		42,119			34,439			22.3	%		146,801			132,447			10.8	%

Operating Expenses
Cost of services and sales
Equipment		5,868			6,443			-8.9	%		19,268			18,946			1.7	%
Broadcast, programming and operations		5,645			1,056			-			11,996			4,075			-
Other cost of services (exclusive of depreciation and amortization shown separately below)		8,178			10,957			-25.4	%		35,782			37,124			-3.6	%
Selling, general and administrative		8,419			14,765			-43.0	%		32,954			39,697			-17.0	%
Abandonment of network assets		-			2,120			-			-			2,120			-
Depreciation and amortization		6,477			4,567			41.8	%		22,016			18,273			20.5	%
Total Operating Expenses		34,587			39,908			-13.3	%		122,016			120,235			1.5	%
Operating Income (Loss)		7,532			(5,469	)		-			24,785			12,212			-
Interest Expense		1,143			856			33.5	%		4,120			3,613			14.0	%
Equity in Net Income (Loss) of Affiliates		31			(13	)		-			79			175			-54.9	%
Other Income (Expense) - Net		(113	)		125			-			(52	)		1,581			-
Income (Loss) Before Income Taxes		6,307			(6,213	)		-			20,692			10,355			99.8	%
Income Tax Expense (Benefit)		2,221			(2,295	)		-			7,005			3,619			93.6	%
Net Income (Loss)		4,086			(3,918	)		-			13,687			6,736			-
Less: Net Income Attributable to Noncontrolling Interest		(80	)		(81	)		1.2	%		(342	)		(294	)		-16.3	%
Net Income (Loss) Attributable to AT&T	$	4,006		$	(3,999	)		-		$	13,345		$	6,442			-


Basic Earnings Per Share Attributable to AT&T	$	0.65		$	(0.77	)		-		$	2.37		$	1.24			91.1	%
Weighted Average Common Shares Outstanding (000,000)		6,165			5,198			18.6	%		5,628			5,205			8.1	%

Diluted Earnings Per Share Attributable to AT&T	$	0.65		$	(0.77	)		-		$	2.37		$	1.24			91.1	%
Weighted Average Common Shares Outstanding with Dilution (000,000)		6,187			5,214			18.7	%		5,646			5,221			8.1	%

Financial Data

AT&T Inc.
Statements of Segment Income
Dollars in millions
Unaudited
	Three Months Ended									Twelve Months Ended
	12/31/2015			12/31/2014			% Chg			12/31/2015			12/31/2014			% Chg
Business Solutions
Segment Operating Revenues
Wireless service	$	7,684		$	7,589			1.3	%	$	30,687		$	30,182			1.7	%
Fixed strategic services		2,827			2,563			10.3	%		10,910			9,666			12.9	%
Legacy voice and data services		4,276			4,802			-11.0	%		18,019			19,857			-9.3	%
Other service and equipment		973			1,026			-5.2	%		3,558			3,860			-7.8	%
Wireless equipment		2,454			2,749			-10.7	%		7,953			7,041			13.0	%
Total Segment Operating Revenues		18,214			18,729			-2.7	%		71,127			70,606			0.7	%

Segment Operating Expenses
Operations and support expenses		11,980			12,990			-7.8	%		44,946			45,826			-1.9	%
Depreciation and amortization		2,513			2,346			7.1	%		9,789			9,355			4.6	%
Total Segment Operating Expenses		14,493			15,336			-5.5	%		54,735			55,181			-0.8	%
Segment Operating Income		3,721			3,393			9.7	%		16,392			15,425			6.3	%
Equity in Net Income of Affiliates		-			-			-			-			-			-
Segment Contribution	$	3,721		$	3,393			9.7	%	$	16,392		$	15,425			6.3	%

Segment Operating Income Margin		20.4	%		18.1	%					23.0	%		21.8	%

Entertainment Group
Segment Operating Revenues
Video entertainment	$	9,247		$	1,810			-		$	20,271		$	6,826			-
High-speed Internet		1,740			1,482			17.4	%		6,601			5,522			19.5	%
Legacy voice and data services		1,367			1,695			-19.4	%		5,914			7,592			-22.1	%
Other service and equipment		640			606			5.6	%		2,508			2,293			9.4	%
Total Segment Operating Revenues		12,994			5,593			-			35,294			22,233			58.7	%

Segment Operating Expenses
Operations and support expenses		10,123			4,810			-			28,345			18,992			49.2	%
Depreciation and amortization		1,426			1,077			32.4	%		4,945			4,473			10.6	%
Total Segment Operating Expenses		11,549			5,887			96.2	%		33,290			23,465			41.9	%
Segment Operating Income (Loss)		1,445			(294	)		-			2,004			(1,232	)		-
Equity in Net Income (Loss) of Affiliates		12			(2	)		-			(4	)		(2	)		-
Segment Contribution	$	1,457		$	(296	)		-		$	2,000		$	(1,234	)		-

Segment Operating Income Margin		11.1	%		-5.3	%					5.7	%		-5.5	%

Financial Data

AT&T Inc.
Statements of Segment Income
Dollars in millions
Unaudited
	Three Months Ended									Twelve Months Ended
	12/31/2015			12/31/2014			% Chg			12/31/2015			12/31/2014			% Chg
Consumer Mobility
Segment Operating Revenues
Postpaid wireless service	$	5,247		$	5,792			-9.4	%	$	22,030		$	24,282			-9.3	%
Prepaid wireless service		1,251			1,099			13.8	%		4,662			4,205			10.9	%
Other service revenue		633			595			6.4	%		2,458			2,363			4.0	%
Equipment		1,618			2,036			-20.5	%		5,916			5,919			-0.1	%
Total Segment Operating Revenues		8,749			9,522			-8.1	%		35,066			36,769			-4.6	%

Segment Operating Expenses
Operations and support expenses		5,669			6,718			-15.6	%		21,477			23,891			-10.1	%
Depreciation and amortization		939			981			-4.3	%		3,851			3,827			0.6	%
Total Segment Operating Expenses		6,608			7,699			-14.2	%		25,328			27,718			-8.6	%
Segment Operating Income		2,141			1,823			17.4	%		9,738			9,051			7.6	%
Equity in Net Income (Loss) of Affiliates		-			-			-			-			(1	)		-
Segment Contribution	$	2,141		$	1,823			17.4	%	$	9,738		$	9,050			7.6	%

Segment Operating Income Margin		24.5	%		19.1	%					27.8	%		24.6	%

International
Segment Operating Revenues
Video entertainment	$	1,206		$	-			-		$	2,151		$	-			-
Wireless service		494			-			-			1,647			-			-
Wireless equipment		149			-			-			304			-			-
Total Segment Operating Revenues		1,849			-			-			4,102			-			-

Segment Operating Expenses
Operations and support expenses		1,799			-			-			3,930			-			-
Depreciation and amortization		309			-			-			655			-			-
Total Segment Operating Expenses		2,108			-			-			4,585			-			-
Segment Operating Income (Loss)		(259	)		-			-			(483	)		-			-
Equity in Net Income (Loss) of Affiliates		(1	)		-			-			(5	)		153			-
Segment Contribution	$	(260	)	$	-			-		$	(488	)	$	153			-

Segment Operating Income Margin		-14.0	%								-11.8	%

Financial Data

AT&T Inc.
Consolidated Balance Sheets
Dollars in millions
Unaudited	December 31,
		2015			2014

Assets
Current Assets
Cash and cash equivalents		$	5,121		$	8,603
Accounts receivable - net of allowances for doubtful accounts of $704 and $454			16,532			14,527
Prepaid expenses			1,072			831
Other current assets			13,267			9,645
Total current assets			35,992			33,606
Property, Plant and Equipment - Net			124,450			112,898
Goodwill			104,568			69,692
Licenses			93,093			60,824
Customer Lists and Relationships - Net			18,208			812
Other Intangible Assets - Net			9,409			5,327
Investments in Equity Affiliates			1,606			250
Other Assets			14,485			13,425
Total Assets		$	401,811		$	296,834

Liabilities and Stockholders' Equity
Current Liabilities
Debt maturing within one year		$	7,636		$	6,056
Accounts payable and accrued liabilities			30,372			23,592
Advanced billing and customer deposits			4,682			4,105
Accrued taxes			2,176			1,091
Dividends payable			2,950			2,438
Total current liabilities			47,816			37,282
Long-Term Debt			118,515			75,778
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes			55,319			38,436
Postemployment benefit obligation			34,262			37,079
Other noncurrent liabilities			22,259			17,989
Total deferred credits and other noncurrent liabilities			111,840			93,504
Stockholders' Equity
Common stock			6,495			6,495
Additional paid-in capital			89,763			91,108
Retained earnings			33,671			31,081
Treasury stock			(12,592	)		(47,029	)
Accumulated other comprehensive income			5,334			8,061
Noncontrolling interest			969			554
Total stockholders' equity			123,640			90,270
Total Liabilities and Stockholders' Equity		$	401,811		$	296,834

Financial Data

AT&T Inc.
Consolidated Statements of Cash Flows
Dollars in millions
(Unaudited)
	Twelve months ended December 31,
	2015			2014

Operating Activities
Net income	$	13,687		$	6,736
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization		22,016			18,273
Undistributed earnings from investments in equity affiliates		(49	)		(27	)
Provision for uncollectible accounts		1,416			1,032
Deferred income tax expense		4,117			1,948
Net loss (gain) from sale of investments, net of impairments		91			(1,461	)
Actuarial (gain) loss on pension and postretirement benefits		(2,152	)		7,869
Abandonment of network assets		-			2,120
Changes in operating assets and liabilities:
Accounts receivable		(535	)		(2,651	)
Other current assets		(1,789	)		(974	)
Accounts payable and accrued liabilities		1,291			2,412
Retirement benefit funding		(735	)		(560	)
Other - net		(1,478	)		(3,379	)
Total adjustments		22,193			24,602
Net Cash Provided by Operating Activities		35,880			31,338

Investing Activities
Construction and capital expenditures:
Capital expenditures		(19,218	)		(21,199	)
Interest during construction		(797	)		(234	)
Acquisitions, net of cash acquired		(30,759	)		(3,141	)
Dispositions		83			8,123
Sales (purchases) of securities, net		1,545			(1,890	)
Return of advances to and investments in equity affiliates		1			4
Other		1			-
Net Cash Used in Investing Activities		(49,144	)		(18,337	)

Financing Activities
Net change in short-term borrowings with
original maturities of three months or less		(1	)		(16	)
Issuance of long-term debt		33,969			15,926
Repayment of long-term debt		(10,042	)		(10,400	)
Issuance of other long-term financing obligations		-			107
Purchase of treasury stock		(269	)		(1,617	)
Issuance of treasury stock		143			39
Dividends paid		(10,200	)		(9,552	)
Other		(3,818	)		(2,224	)
Net Cash Provided by (Used in) Financing Activities		9,782			(7,737	)
Net (decrease) increase in cash and cash equivalents		(3,482	)		5,264
Cash and cash equivalents beginning of year		8,603			3,339
Cash and Cash Equivalents End of Year	$	5,121		$	8,603

Financial Data

AT&T Inc.
Supplementary Operating and Financial Data
Dollars in millions except per share amounts, subscribers and connections in (000s)
Unaudited	Three Months Ended									Twelve Months Ended
	12/31/2015			12/31/2014			% Chg			12/31/2015			12/31/2014			% Chg
Business Solutions Wireless Subscribers											73,659			65,114			13.1	%
Postpaid											48,290			45,160			6.9	%
Reseller											85			11			-
Connected Devices¹											25,284			19,943			26.8	%

Business Solutions Wireless Net Adds		1,563			1,863			-16.1	%		6,531			5,509			18.6	%
Postpaid		353			566			-37.6	%		1,203			2,064			-41.7	%
Reseller		(1	)		2			-			13			6			-
Connected Devices¹		1,211			1,295			-6.5	%		5,315			3,439			54.6	%

Business Wireless Postpaid Churn		1.10	%		1.08	%	2		BP		0.99	%		0.90	%	9		BP

Consumer Mobility Subscribers											54,981			55,440			-0.8	%
Postpaid											28,814			30,610			-5.9	%
Prepaid¹											11,548			9,965			15.9	%
Reseller											13,690			13,844			-1.1	%
Connected Devices¹											929			1,021			-9.0	%

Consumer Mobility Net Adds		671			42			-			1,528			99			-
Postpaid		174			288			-39.6	%		463			1,226			-62.2	%
Prepaid¹		469			(67	)		-			1,364			(311	)		-
Reseller		50			(65	)		-			(168	)		(351	)		52.1	%
Connected Devices¹		(22	)		(114	)		80.7	%		(131	)		(465	)		71.8	%

Consumer Mobility Postpaid Churn		1.31	%		1.43	%	-12		BP		1.25	%		1.22	%	3		BP
Total Consumer Mobility Churn		1.97	%		2.21	%	-24		BP		1.94	%		2.06	%	-12		BP

Entertainment Group											52,182			34,366			51.8	%
Video Connections											25,398			5,920			-
Satellite											19,784			-			-
U-verse											5,614			5,920			-5.2	%

Video Net Adds		(26	)		72			-			(66	)		663			-
Satellite		214			-			-			240			-			-
U-verse		(240	)		72			-			(306	)		663			-

Broadband Connections											14,286			14,444			-1.1	%
IP											12,356			11,383			8.5	%
DSL											1,930			3,061			-36.9	%

Broadband Net Adds		(37	)		(21	)		-76.2	%		(157	)		131			-
IP		171			372			-54.0	%		973			1,899			-48.8	%
DSL		(208	)		(393	)		47.1	%		(1,130	)		(1,768	)		36.1	%

Total Wireline Voice Connections											12,498			14,002			-10.7	%

AT&T International
Wireless Subscribers and Connections
Subscribers											8,684			-			-
Net Adds		593			-			-			(96	)		-			-
Total Churn		5.67	%		-			-			6.38	%		-			-

Video Subscribers and Connections
Latin America Video Subscribers		(34	)		-			-			12,510			-			-
Pan Americana		60			-			-			7,066			-			-
Brazil		(94	)		-			-			5,444			-			-

Financial Data

AT&T Inc.
Supplementary Operating and Financial Data
Dollars in millions except per share amounts, subscribers and connections in (000s)
Unaudited	Three Months Ended									Twelve Months Ended
	12/31/2015			12/31/2014			% Chg			12/31/2015			12/31/2014			% Chg
AT&T Total Susbscribers and Connections
AT&T Mobility Subscribers											128,640			120,554			6.7	%
Postpaid¹											77,105			75,770			1.8	%
Prepaid¹											11,548			9,965			15.9	%
Reseller											13,774			13,855			-0.6	%
Connected Devices¹											26,213			20,964			25.0	%

AT&T Mobility Net Adds		2,234			1,905			17.3	%		8,059			5,608			43.7	%
Postpaid¹		526			854			-38.4	%		1,666			3,290			-49.4	%
Prepaid¹		469			(67	)		-			1,364			(311	)		-
Reseller		50			(65	)		-			(155	)		(346	)		55.2	%
Connected Devices¹		1,189			1,183			0.5	%		5,184			2,975			74.3	%
M&A Activity, Partitioned Customers and Other Adjs.		-			(1	)		-			27			4,570			-

AT&T Mobility Churn
Postpaid Churn		1.18	%		1.22	%	-4		BP		1.09	%		1.04	%	5		BP
Total Churn		1.50	%		1.59	%	-9		BP		1.39	%		1.45	%	-6		BP

Other
Domestic Licensed POPs (000,000)											321			321			-

Total Video Subscribers											37,934			5,943			-
Domestic											25,424			5,943			-
Pan Americana											7,066			-			-
Brazil											5,444			-			-

Total Video Net Adds		(60	)		(124	)		51.6	%		(210	)		483			-
Domestic		(26	)		(124	)		79.0	%		(63	)		483			-
Pan Americana		60			-			-			76			-			-
Brazil		(94	)		-			-			(223	)		-			-

Total Broadband Connections											15,778			16,028			-1.6	%
IP											13,268			12,205			8.7	%
DSL											2,510			3,823			-34.3	%

Broadband Net Adds		(54	)		(458	)		88.2	%		(250	)		(397	)		37.0	%
IP		192			107			79.4	%		1,063			1,830			-41.9	%
DSL		(246	)		(565	)		56.5	%		(1,313	)		(2,227	)		41.0	%

Total Wireline Voice Connections											22,123			24,778			-10.7	%

AT&T Inc.
Construction and capital expenditures:
Capital expenditures	$	5,862		$	4,370			34.1	%	$	19,218		$	21,199			-9.3	%
Interest during construction	$	231		$	56			-		$	797		$	234			-
Dividends Declared per Share	$	0.48		$	0.47			2.1	%	$	1.89		$	1.85			2.2	%
End of Period Common Shares Outstanding (000,000)											6,145			5,187			18.5	%
Debt Ratio^1,2											50.5	%		47.5	%	300		BP
Total Employees											281,450			243,620			15.5	%

¹	Prior year amounts restated to conform to current period reporting methodology.
²	Total long-term debt plus debt maturing within one year divided by total debt plus total stockholders' equity.
	Note: For the end of 4Q15, total switched access lines were 16,670.
		Business Solutions and Consumer Mobility may not total to AT&T Mobility due to Rounding.

Financial Data

AT&T Inc.
Supplemental AT&T Mobility Results
Dollars in millions
Unaudited
	Three Months Ended									Twelve Months Ended
	12/31/2015			12/31/2014			% Chg			12/31/2015			12/31/2014			% Chg
AT&T Mobility
Operating Revenues
Service	$	14,815		$	15,074			-1.7	%	$	59,837		$	61,032			-2.0	%
Equipment		4,071			4,785			-14.9	%		13,868			12,960			7.0	%
Total Segment Operating Revenues		18,886			19,859			-4.9	%		73,705			73,992			-0.4	%

Operating Expenses
Operations and support expenses		12,479			14,327			-12.9	%		45,789			48,348			-5.3	%
Depreciation and amortization		2,031			1,959			3.7	%		8,113			7,744			4.8	%
Total Operating Expenses		14,510			16,286			-10.9	%		53,902			56,092			-3.9	%
Operating Income		4,376			3,573			22.5	%		19,803			17,900			10.6	%
Equity in Net Income (Loss) of Affiliates		-			-			-			-			(1	)		-
Income	$	4,376		$	3,573			22.5	%	$	19,803		$	17,899			10.6	%

Operating Income Margin		23.2	%		18.0	%					26.9	%		24.2	%

Financial Data

AT&T Inc.
Segment Supplemental - QTD
Dollars in millions
Unaudited

For the three months ended December 31, 2015
	Revenues		Operations and Support Expenses			EBITDA			Depreciation and Amortization		Operating Income (Loss)			Equity in Net Income of Affiliates			Segment Contribution
Business Solutions	$	18,214	$	11,980		$	6,234		$	2,513	$	3,721		$	-		$	3,721
Entertainment Group		12,994		10,123			2,871			1,426		1,445			12			1,457
Consumer Mobility		8,749		5,669			3,080			939		2,141			-			2,141
International		1,849		1,799			50			309		(259	)		(1	)		(260	)
Segment Total	$	41,806	$	29,571		$	12,235		$	5,187	$	7,048		$	11		$	7,059
Corporate and Other		313		272			41			17		24
Acquisition-related items		-		383			(383	)		1,273		(1,656	)
Certain Significant items		-		(2,116	)		2,116			-		2,116
AT&T Inc.	$	42,119	$	28,110		$	14,009		$	6,477	$	7,532

For the three months ended December 31, 2014
	Revenues		Operations and Support Expenses			EBITDA			Depreciation and Amortization		Operating Income (Loss)			Equity in Net Income of Affiliates			Segment Contribution
Business Solutions	$	18,729	$	12,990		$	5,739		$	2,346	$	3,393		$	-		$	3,393
Entertainment Group		5,593		4,810			783			1,077		(294	)		(2	)		(296	)
Consumer Mobility		9,522		6,718			2,804			981		1,823			-			1,823
International		-		-			-			-		-			-			-
Segment Total	$	33,844	$	24,518		$	9,326		$	4,404	$	4,922		$	(2	)	$	4,920
Corporate and Other		595		444			151			28		123
Acquisition-related items		-		382			(382	)		109		(491	)
Certain Significant items		-		9,997			(9,997	)		26		(10,023	)
AT&T Inc.	$	34,439	$	35,341		$	(902	)	$	4,567	$	(5,469	)

Financial Data

AT&T Inc.
Segment Supplemental - YTD
Dollars in millions
Unaudited

For the year ended December 31, 2015
	Revenues			Operations and Support Expenses			EBITDA			Depreciation and Amortization		Operating Income (Loss)			Equity in Net Income of Affiliates			Segment Contribution
Business Solutions	$	71,127		$	44,946		$	26,181		$	9,789	$	16,392		$	-		$	16,392
Entertainment Group		35,294			28,345			6,949			4,945		2,004			(4	)		2,000
Consumer Mobility		35,066			21,477			13,589			3,851		9,738			-			9,738
International		4,102			3,930			172			655		(483	)		(5	)		(488	)
Segment Total	$	145,589		$	98,698		$	46,891		$	19,240	$	27,651		$	(9	)	$	27,642
Corporate and Other		1,297			1,057			240			64		176
Acquisition-related items		(85	)		1,987			(2,072	)		2,712		(4,784	)
Certain Significant items		-			(1,742	)		1,742			-		1,742
AT&T Inc.	$	146,801		$	100,000		$	46,801		$	22,016	$	24,785

For the year ended December 31, 2014
	Revenues			Operations and Support Expenses			EBITDA			Depreciation and Amortization		Operating Income (Loss)			Equity in Net Income of Affiliates			Segment Contribution
Business Solutions	$	70,606		$	45,826		$	24,780		$	9,355	$	15,425		$	-		$	15,425
Entertainment Group		22,233			18,992			3,241			4,473		(1,232	)		(2	)		(1,234	)
Consumer Mobility		36,769			23,891			12,878			3,827		9,051			(1	)		9,050
International		-			-			-			-		-			153			153
Segment Total	$	129,608		$	88,709		$	40,899		$	17,655	$	23,244		$	150		$	23,394
Corporate and Other		2,839			2,471			368			105		263
Acquisition-related items		-			785			(785	)		487		(1,272	)
Certain Significant items		-			9,997			(9,997	)		26		(10,023	)
AT&T Inc.	$	132,447		$	101,962		$	30,485		$	18,273	$	12,212

AT&T INC. - FORM 8-K - EX-99.1 - AT&T INC. SELECTED FINANCIAL STATEMENTS AND OPERATING DATA - January 26, 2016

Attached files

AT&T INC. Reports