Attached files
|
Financial Data
|
||||||||||||
|
AT&T Inc.
|
||||||||||||
|
Consolidated Statements of Income
|
||||||||||||
|
Dollars in millions except per share amounts
|
||||||||||||
|
Unaudited
|
Three Months Ended
|
|||||||||||
|
3/31/2016
|
3/31/2015
|
% Chg
|
||||||||||
|
Operating Revenues
|
||||||||||||
|
Service
|
$
|
37,101
|
$
|
28,962
|
28.1
|
%
|
||||||
|
Equipment
|
3,434
|
3,614
|
-5.0
|
%
|
||||||||
|
Total Operating Revenues
|
40,535
|
32,576
|
24.4
|
%
|
||||||||
|
Operating Expenses
|
||||||||||||
|
Cost of services and sales
|
||||||||||||
|
Equipment
|
4,375
|
4,546
|
-3.8
|
%
|
||||||||
|
Broadcast, programming and operations
|
4,629
|
1,122
|
-
|
|||||||||
|
Other cost of services (exclusive of depreciation
and amortization shown separately below)
|
9,396
|
8,812
|
6.6
|
%
|
||||||||
|
Selling, general and administrative
|
8,441
|
7,961
|
6.0
|
%
|
||||||||
|
Depreciation and amortization
|
6,563
|
4,578
|
43.4
|
%
|
||||||||
|
Total Operating Expenses
|
33,404
|
27,019
|
23.6
|
%
|
||||||||
|
Operating Income
|
7,131
|
5,557
|
28.3
|
%
|
||||||||
|
Interest Expense
|
1,207
|
899
|
34.3
|
%
|
||||||||
|
Equity in Net Income of Affiliates
|
13
|
-
|
-
|
|||||||||
|
Other Income (Expense) - Net
|
70
|
70
|
-
|
|||||||||
|
Income Before Income Taxes
|
6,007
|
4,728
|
27.1
|
%
|
||||||||
|
Income Tax Expense
|
2,122
|
1,389
|
52.8
|
%
|
||||||||
|
Net Income
|
3,885
|
3,339
|
16.4
|
%
|
||||||||
|
Less: Net Income Attributable to Noncontrolling Interest
|
(82
|
)
|
(76
|
)
|
-7.9
|
%
|
||||||
|
Net Income Attributable to AT&T
|
$
|
3,803
|
$
|
3,263
|
16.5
|
%
|
||||||
|
Basic Earnings Per Share Attributable to AT&T
|
$
|
0.62
|
$
|
0.63
|
-1.6
|
%
|
||||||
|
Weighted Average Common
Shares Outstanding (000,000)
|
6,172
|
5,203
|
18.6
|
%
|
||||||||
|
Diluted Earnings Per Share Attributable to AT&T
|
$
|
0.61
|
$
|
0.63
|
-3.2
|
%
|
||||||
|
Weighted Average Common
Shares Outstanding with Dilution (000,000)
|
6,190
|
5,219
|
18.6
|
%
|
||||||||
|
Financial Data
|
|||||||||||||
|
AT&T Inc.
|
|||||||||||||
|
Statements of Segment Income
|
|||||||||||||
|
Dollars in millions
|
|||||||||||||
|
Unaudited
|
|||||||||||||
|
Three Months Ended
|
|||||||||||||
|
3/31/2016
|
3/31/2015
|
% Chg
|
|||||||||||
|
Business Solutions
|
|||||||||||||
|
Segment Operating Revenues
|
|||||||||||||
|
Wireless service
|
$
|
7,855
|
|
$
|
7,515
|
4.5
|
%
|
||||||
|
Fixed strategic services
|
2,786
|
2,549
|
9.3
|
%
|
|||||||||
|
Legacy voice and data services
|
4,338
|
4,754
|
-8.8
|
%
|
|||||||||
|
Other service and equipment
|
859
|
846
|
1.5
|
%
|
|||||||||
|
Wireless Equipment
|
1,771
|
1,893
|
-6.4
|
%
|
|||||||||
|
Total Segment Operating Revenues
|
17,609
|
17,557
|
0.3
|
%
|
|||||||||
|
Segment Operating Expenses
|
|||||||||||||
|
Operations and Support Expenses
|
10,802
|
11,073
|
-2.4
|
%
|
|||||||||
|
Depreciation and amortization
|
2,508
|
2,342
|
7.1
|
%
|
|||||||||
|
Total Segment Operating Expenses
|
13,310
|
13,415
|
-0.8
|
%
|
|||||||||
|
Segment Operating Income
|
4,299
|
4,142
|
3.8
|
%
|
|||||||||
|
Equity in Net Income of Affiliates
|
-
|
-
|
-
|
||||||||||
|
Segment Contribution
|
$
|
4,299
|
|
$
|
4,142
|
3.8
|
%
|
||||||
|
Segment Operating Income Margin
|
24.4
|
%
|
|
23.6
|
%
|
||||||||
|
Entertainment Group
|
|||||||||||||
|
Segment Operating Revenues
|
|||||||||||||
|
Video entertainment
|
$
|
8,904
|
|
$
|
1,871
|
-
|
|||||||
|
High-speed internet
|
1,803
|
1,553
|
16.1
|
%
|
|||||||||
|
Legacy voice and data services
|
1,313
|
1,612
|
-18.5
|
%
|
|||||||||
|
Other service and equipment
|
638
|
624
|
2.2
|
%
|
|||||||||
|
Total Segment Operating Revenues
|
12,658
|
5,660
|
-
|
||||||||||
|
Segment Operating Expenses
|
|||||||||||||
|
Operations and Support Expenses
|
9,578
|
4,859
|
97.1
|
%
|
|||||||||
|
Depreciation and amortization
|
1,488
|
1,065
|
39.7
|
%
|
|||||||||
|
Total Segment Operating Expenses
|
11,066
|
5,924
|
86.8
|
%
|
|||||||||
|
Segment Operating Income (Loss)
|
1,592
|
(264
|
)
|
-
|
|||||||||
|
Equity in Net Income (Loss) of Affiliates
|
3
|
(6
|
)
|
-
|
|||||||||
|
Segment Contribution
|
$
|
1,595
|
|
$
|
(270
|
)
|
-
|
||||||
|
Segment Operating Income Margin
|
12.6
|
%
|
|
-4.7
|
%
|
||||||||
|
Consumer Mobility
|
|||||||||||||
|
Segment Operating Revenues
|
|||||||||||||
|
Service
|
$
|
6,943
|
|
$
|
7,297
|
-4.9
|
%
|
||||||
|
Equipment
|
1,385
|
1,481
|
-6.5
|
%
|
|||||||||
|
Total Segment Operating Revenues
|
8,328
|
8,778
|
-5.1
|
%
|
|||||||||
|
Segment Operating Expenses
|
|||||||||||||
|
Operations and Support Expenses
|
4,912
|
5,541
|
-11.4
|
%
|
|||||||||
|
Depreciation and amortization
|
922
|
1,002
|
-8.0
|
%
|
|||||||||
|
Total Segment Operating Expenses
|
5,834
|
6,543
|
-10.8
|
%
|
|||||||||
|
Segment Operating Income
|
2,494
|
2,235
|
11.6
|
%
|
|||||||||
|
Equity in Net Income of Affiliates
|
-
|
-
|
-
|
||||||||||
|
Segment Contribution
|
$
|
2,494
|
|
$
|
2,235
|
11.6
|
%
|
||||||
|
Segment Operating Income Margin
|
29.9
|
%
|
|
25.5
|
%
|
||||||||
|
International
|
|||||||||||||
|
Segment Operating Revenues
|
|||||||||||||
|
Video entertainment
|
$
|
1,130
|
|
$
|
-
|
-
|
|||||||
|
Wireless service
|
455
|
215
|
-
|
||||||||||
|
Wireless Equipment
|
82
|
21
|
-
|
||||||||||
|
Total Segment Operating Revenues
|
1,667
|
236
|
-
|
||||||||||
|
Segment Operating Expenses
|
|||||||||||||
|
Operations and Support Expenses
|
1,588
|
218
|
-
|
||||||||||
|
Depreciation and amortization
|
277
|
28
|
-
|
||||||||||
|
Total Segment Operating Expenses
|
1,865
|
246
|
-
|
||||||||||
|
Segment Operating Income (Loss)
|
(198
|
)
|
(10
|
)
|
-
|
||||||||
|
Equity in Net Income of Affiliates
|
14
|
-
|
-
|
||||||||||
|
Segment Contribution
|
$
|
(184
|
)
|
|
$
|
(10
|
)
|
-
|
|||||
|
Segment Operating Income Margin
|
-11.9
|
%
|
|
-4.2
|
%
|
||||||||
|
Financial Data
|
||||||||
|
AT&T Inc.
|
||||||||
|
Consolidated Balance Sheets
|
||||||||
|
Dollars in millions
|
||||||||
|
3/31/2016
|
12/31/2015
|
|||||||
|
Unaudited
|
||||||||
|
Assets
|
||||||||
|
Current Assets
|
||||||||
|
Cash and cash equivalents
|
$
|
10,008
|
$
|
5,121
|
||||
|
Accounts receivable - net of allowances for doubtful accounts of $697 and $704
|
16,070
|
16,532
|
||||||
|
Prepaid expenses
|
1,378
|
1,072
|
||||||
|
Other current assets
|
10,545
|
13,267
|
||||||
|
Total current assets
|
38,001
|
35,992
|
||||||
|
Property, Plant and Equipment - Net
|
123,454
|
124,450
|
||||||
|
Goodwill
|
104,651
|
104,568
|
||||||
|
Licenses
|
94,130
|
93,093
|
||||||
|
Customer Lists and Relationships - Net
|
17,197
|
18,208
|
||||||
|
Other Intangible Assets - Net
|
9,108
|
9,409
|
||||||
|
Investments in Equity Affiliates
|
1,594
|
1,606
|
||||||
|
Other Assets
|
15,503
|
15,346
|
||||||
|
Total Assets
|
$
|
403,638
|
$
|
402,672
|
||||
|
Liabilities and Stockholders' Equity
|
||||||||
|
Current Liabilities
|
||||||||
|
Debt maturing within one year
|
$
|
8,399
|
$
|
7,636
|
||||
|
Accounts payable and accrued liabilities
|
26,169
|
30,372
|
||||||
|
Advanced billing and customer deposits
|
4,550
|
4,682
|
||||||
|
Accrued taxes
|
2,455
|
2,176
|
||||||
|
Dividends payable
|
2,955
|
2,950
|
||||||
|
Total current liabilities
|
44,528
|
47,816
|
||||||
|
Long-Term Debt
|
122,104
|
118,515
|
||||||
|
Deferred Credits and Other Noncurrent Liabilities
|
||||||||
|
Deferred income taxes
|
57,489
|
56,181
|
||||||
|
Postemployment benefit obligation
|
34,114
|
34,262
|
||||||
|
Other noncurrent liabilities
|
20,998
|
22,258
|
||||||
|
Total deferred credits and other noncurrent liabilities
|
112,601
|
112,701
|
||||||
|
Stockholders' Equity
|
||||||||
|
Common stock
|
6,495
|
6,495
|
||||||
|
Additional paid-in capital
|
89,414
|
89,763
|
||||||
|
Retained earnings
|
34,506
|
33,671
|
||||||
|
Treasury stock
|
(12,163
|
)
|
(12,592
|
)
|
||||
|
Accumulated other comprehensive income
|
5,180
|
5,334
|
||||||
|
Noncontrolling interest
|
973
|
969
|
||||||
|
Total stockholders' equity
|
124,405
|
123,640
|
||||||
|
Total Liabilities and Stockholders' Equity
|
$
|
403,638
|
$
|
402,672
|
||||
|
Financial Data
|
||||||||
|
AT&T Inc.
|
||||||||
|
Consolidated Statements of Cash Flows
|
||||||||
|
Dollars in millions
|
||||||||
|
(Unaudited)
|
||||||||
|
Three Months Ended
|
||||||||
|
3/31/2016
|
3/31/2015
|
|||||||
|
Operating Activities
|
||||||||
|
Net income
|
$
|
3,885
|
$
|
3,339
|
||||
|
Adjustments to reconcile net income to
|
||||||||
|
net cash provided by operating activities:
|
||||||||
|
Depreciation and amortization
|
6,563
|
4,578
|
||||||
|
Undistributed earnings from investments in equity affiliates
|
(13
|
)
|
-
|
|||||
|
Provision for uncollectible accounts
|
374
|
285
|
||||||
|
Deferred income tax expense
|
1,346
|
252
|
||||||
|
Net gain from sale of investments, net of impairments
|
(44
|
)
|
(33
|
)
|
||||
|
Changes in operating assets and liabilities:
|
||||||||
|
Accounts receivable
|
627
|
739
|
||||||
|
Other current assets
|
612
|
408
|
||||||
|
Accounts payable and accrued liabilities
|
(4,006
|
)
|
(1,817
|
)
|
||||
|
Retirement benefit funding
|
(140
|
)
|
(140
|
)
|
||||
|
Other - net
|
(1,304
|
)
|
(873
|
)
|
||||
|
Total adjustments
|
4,015
|
3,399
|
||||||
|
Net Cash Provided by Operating Activities
|
7,900
|
6,738
|
||||||
|
Investing Activities
|
||||||||
|
Construction and capital expenditures:
|
||||||||
|
Capital expenditures
|
(4,451
|
)
|
(3,848
|
)
|
||||
|
Interest during construction
|
(218
|
)
|
(123
|
)
|
||||
|
Acquisitions, net of cash acquired
|
(165
|
)
|
(19,514
|
)
|
||||
|
Dispositions
|
81
|
8
|
||||||
|
Sales of securities, net
|
445
|
1,890
|
||||||
|
Net Cash Used in Investing Activities
|
(4,308
|
)
|
(21,587
|
)
|
||||
|
Financing Activities
|
||||||||
|
Issuance of long-term debt
|
5,978
|
16,572
|
||||||
|
Repayment of long-term debt
|
(2,296
|
)
|
(596
|
)
|
||||
|
Issuance of treasury stock
|
89
|
8
|
||||||
|
Dividends paid
|
(2,947
|
)
|
(2,434
|
)
|
||||
|
Other
|
471
|
(2,860
|
)
|
|||||
|
Net Cash Provided by Financing Activities
|
1,295
|
10,690
|
||||||
|
Net increase (decrease) in cash and cash equivalents
|
4,887
|
(4,159
|
)
|
|||||
|
Cash and cash equivalents beginning of year
|
5,121
|
8,603
|
||||||
|
Cash and Cash Equivalents End of Period
|
$
|
10,008
|
$
|
4,444
|
||||
|
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
|
|||||||||||
|
3/31/2016
|
3/31/2015
|
% Chg
|
||||||||||
|
Business Solutions Wireless Subscribers
|
75,771
|
66,945
|
13.2
|
%
|
||||||||
|
Postpaid
|
48,844
|
45,959
|
6.3
|
%
|
||||||||
|
Reseller
|
64
|
14
|
-
|
|||||||||
|
Connected Devices
|
26,863
|
20,972
|
28.1
|
%
|
||||||||
|
Business Solutions Wireless Net Adds
|
1,689
|
1,324
|
27.6
|
%
|
||||||||
|
Postpaid
|
133
|
297
|
-55.2
|
%
|
||||||||
|
Reseller
|
(22
|
)
|
3
|
-
|
||||||||
|
Connected Devices
|
1,578
|
1,024
|
54.1
|
%
|
||||||||
|
Business Wireless Postpaid Churn
|
1.02
|
%
|
0.90
|
%
|
12
|
BP | ||||||
|
Consumer Mobility Subscribers
|
54,674
|
54,827
|
-0.3
|
%
|
||||||||
|
Postpaid
|
28,294
|
30,216
|
-6.4
|
%
|
||||||||
|
Prepaid
|
12,171
|
10,037
|
21.3
|
%
|
||||||||
|
Reseller
|
13,313
|
13,581
|
-2.0
|
%
|
||||||||
|
Connected Devices
|
896
|
993
|
-9.8
|
%
|
||||||||
|
Consumer Mobility Net Adds
|
92
|
(106
|
)
|
-
|
||||||||
|
Postpaid
|
(4
|
)
|
144
|
-
|
||||||||
|
Prepaid
|
500
|
98
|
-
|
|||||||||
|
Reseller
|
(378
|
)
|
(269
|
)
|
-40.5
|
%
|
||||||
|
Connected Devices
|
(26
|
)
|
(79
|
)
|
67.1
|
%
|
||||||
|
Consumer Mobility Postpaid Churn
|
1.24
|
%
|
1.20
|
%
|
4
|
BP | ||||||
|
Total Consumer Mobility Churn
|
2.11
|
%
|
2.04
|
%
|
7
|
BP | ||||||
|
Entertainment Group
|
51,748
|
34,175
|
51.4
|
%
|
||||||||
|
Video Connections
|
25,344
|
5,969
|
-
|
|||||||||
|
Satellite
|
20,112
|
-
|
-
|
|||||||||
|
U-verse
|
5,232
|
5,969
|
-12.3
|
%
|
||||||||
|
Video Net Adds
|
(54
|
)
|
49
|
-
|
||||||||
|
Satellite
|
328
|
-
|
-
|
|||||||||
|
U-verse
|
(382
|
)
|
49
|
-
|
||||||||
|
Broadband Connections
|
14,291
|
14,537
|
-1.7
|
%
|
||||||||
|
IP
|
12,542
|
11,796
|
6.3
|
%
|
||||||||
|
DSL
|
1,749
|
2,741
|
-36.2
|
%
|
||||||||
|
Broadband Net Adds
|
5
|
93
|
-94.6
|
%
|
||||||||
|
IP
|
186
|
413
|
-55.0
|
%
|
||||||||
|
DSL
|
(181
|
)
|
(320
|
)
|
43.4
|
%
|
||||||
|
Total Wireline Voice Connections
|
12,113
|
13,669
|
-11.4
|
%
|
||||||||
|
AT&T International
|
||||||||||||
|
Mexican Wireless Subscribers and Connections
|
||||||||||||
|
Subscribers
|
9,213
|
5,728
|
60.8
|
%
|
||||||||
|
Net Adds
|
529
|
-
|
-
|
|||||||||
|
Total Churn
|
5.45
|
%
|
-
|
-
|
||||||||
|
Video Subscribers and Connections
|
||||||||||||
|
Latin America Video Subscribers
|
12,436
|
-
|
-
|
|||||||||
|
Pan Americana
|
7,094
|
-
|
-
|
|||||||||
|
Brazil
|
5,342
|
-
|
-
|
|||||||||
|
Video Subscribers and Connections Net Adds
|
||||||||||||
|
Latin America Video Subscribers
|
(73
|
)
|
-
|
-
|
||||||||
|
Pan Americana
|
28
|
-
|
-
|
|||||||||
|
Brazil
|
(101
|
)
|
-
|
-
|
||||||||
|
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
|
|||||||||||
|
3/31/2016
|
3/31/2015
|
% Chg
|
||||||||||
|
AT&T Total Subscribers and Connections
|
||||||||||||
|
AT&T Mobility Subscribers
|
130,445
|
121,772
|
7.1
|
%
|
||||||||
|
Postpaid
|
77,138
|
76,175
|
1.3
|
%
|
||||||||
|
Prepaid
|
12,171
|
10,037
|
21.3
|
%
|
||||||||
|
Branded
|
89,309
|
86,212
|
3.6
|
%
|
||||||||
|
Reseller
|
13,378
|
13,595
|
-1.6
|
%
|
||||||||
|
Connected Devices
|
27,758
|
21,965
|
26.4
|
%
|
||||||||
|
AT&T Mobility Net Adds
|
1,781
|
1,218
|
46.2
|
%
|
||||||||
|
Postpaid
|
129
|
441
|
-70.7
|
%
|
||||||||
|
Prepaid
|
500
|
98
|
-
|
|||||||||
|
Branded
|
629
|
539
|
16.7
|
%
|
||||||||
|
Reseller
|
(400
|
)
|
(266
|
)
|
-50.4
|
%
|
||||||
|
Connected Devices
|
1,552
|
945
|
64.2
|
%
|
||||||||
|
M&A Activity, Partitioned Customers and Other Adjs.
|
24
|
-
|
-
|
|||||||||
|
AT&T Mobility Churn
|
||||||||||||
|
Postpaid Churn
|
1.10
|
%
|
1.02
|
%
|
8
|
BP | ||||||
|
Total Churn
|
1.42
|
%
|
1.40
|
%
|
2
|
BP | ||||||
|
Other
|
||||||||||||
|
Domestic Licensed POPs (000,000)
|
322
|
321
|
0.3
|
%
|
||||||||
|
Total Video Subscribers
|
37,808
|
5,993
|
-
|
|||||||||
|
Domestic
|
25,372
|
5,993
|
-
|
|||||||||
|
Pan Americana
|
7,094
|
-
|
-
|
|||||||||
|
Brazil
|
5,342
|
-
|
-
|
|||||||||
|
Total Video Net Adds
|
(125
|
)
|
50
|
-
|
||||||||
|
Domestic
|
(52
|
)
|
50
|
-
|
||||||||
|
Pan Americana
|
28
|
-
|
-
|
|||||||||
|
Brazil
|
(101
|
)
|
-
|
-
|
||||||||
|
Total Broadband Connections
|
15,764
|
16,097
|
-2.1
|
%
|
||||||||
|
IP
|
13,470
|
12,644
|
6.5
|
%
|
||||||||
|
DSL
|
2,294
|
3,453
|
-33.6
|
%
|
||||||||
|
Broadband Net Adds
|
(14
|
)
|
69
|
-
|
||||||||
|
IP
|
202
|
439
|
-54.0
|
%
|
||||||||
|
DSL
|
(216
|
)
|
(370
|
)
|
41.6
|
%
|
||||||
|
Total Wireline Voice Connections
|
21,459
|
24,149
|
-11.1
|
%
|
||||||||
|
Total Wireless Subscribers
|
139,658
|
127,500
|
9.5
|
%
|
||||||||
|
Domestic Wireless Subscribers
|
130,445
|
121,772
|
7.1
|
%
|
||||||||
|
Mexican Wireless Subscribers
|
9,213
|
5,728
|
60.8
|
%
|
||||||||
|
Branded Subscribers
|
98,158
|
91,448
|
7.3
|
%
|
||||||||
|
Branded Net Adds
|
1,195
|
539
|
-
|
|||||||||
|
AT&T Inc.
|
||||||||||||
|
Construction and capital expenditures:
|
||||||||||||
|
Capital expenditures
|
$
|
4,451
|
$
|
3,848
|
15.7
|
%
|
||||||
|
Interest during construction
|
$
|
218
|
$
|
123
|
77.2
|
%
|
||||||
|
Dividends Declared per Share
|
$
|
0.48
|
$
|
0.47
|
2.1
|
%
|
||||||
|
End of Period Common Shares Outstanding (000,000)
|
6,156
|
5,193
|
18.5
|
%
|
||||||||
|
Debt Ratio1,2
|
51.2
|
%
|
51.5
|
%
|
-30
|
BP | ||||||
|
Total Employees
|
280,870
|
250,790
|
12.0
|
%
|
||||||||
|
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 1Q16, total switched access lines were 15,975.
|
||
|
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
|
|||||||||||||
|
3/31/2016
|
3/31/2015
|
% Chg
|
|||||||||||
|
AT&T Mobility
|
|||||||||||||
|
Operating Revenues
|
|||||||||||||
|
Service
|
$
|
14,798
|
|
$
|
14,812
|
-0.1
|
%
|
||||||
|
Equipment
|
3,156
|
3,374
|
-6.5
|
%
|
|||||||||
|
Total Operating Revenues
|
17,954
|
18,186
|
-1.3
|
%
|
|||||||||
|
Operating Expenses
|
|||||||||||||
|
Operations and support expenses
|
10,624
|
11,472
|
-7.4
|
%
|
|||||||||
|
Depreciation and amortization
|
2,056
|
2,005
|
2.5
|
%
|
|||||||||
|
Total Operating Expenses
|
12,680
|
13,477
|
-5.9
|
%
|
|||||||||
|
Operating Income
|
$
|
5,274
|
|
$
|
4,709
|
12.0
|
%
|
||||||
|
Operating Income Margin
|
29.4
|
%
|
|
25.9
|
%
|
||||||||
|
Financial Data
|
||||||||||||||||||||||||||||
|
AT&T Inc.
|
||||||||||||||||||||||||||||
|
Segment Supplemental
|
||||||||||||||||||||||||||||
|
Dollars in millions except per share amounts
|
||||||||||||||||||||||||||||
|
For the three months ended March 31, 2016
|
||||||||||||||||||||||||||||
|
Revenues
|
Operations and Support Expenses
|
EBITDA
|
Depreciation and Amortization
|
Operating Income (Loss)
|
Equity in Net Income of Affiliates
|
Segment Contribution
|
||||||||||||||||||||||
|
Business Solutions
|
$
|
17,609
|
$
|
10,802
|
$
|
6,807
|
$
|
2,508
|
$
|
4,299
|
$
|
-
|
$
|
4,299
|
||||||||||||||
|
Entertainment Group
|
12,658
|
9,578
|
3,080
|
1,488
|
1,592
|
3
|
1,595
|
|||||||||||||||||||||
|
Consumer Mobility
|
8,328
|
4,912
|
3,416
|
922
|
2,494
|
-
|
2,494
|
|||||||||||||||||||||
|
International
|
1,667
|
1,588
|
79
|
277
|
(198
|
)
|
14
|
(184
|
)
|
|||||||||||||||||||
|
Segment Total
|
$
|
40,262
|
$
|
26,880
|
$
|
13,382
|
$
|
5,195
|
$
|
8,187
|
$
|
17
|
$
|
8,204
|
||||||||||||||
|
Corporate and Other
|
273
|
377
|
(104
|
)
|
17
|
(121
|
)
|
|||||||||||||||||||||
|
Acquisition-related items
|
-
|
295
|
(295
|
)
|
1,351
|
(1,646
|
)
|
|||||||||||||||||||||
|
Certain Significant items
|
-
|
(711
|
)
|
711
|
-
|
711
|
||||||||||||||||||||||
|
AT&T Inc.
|
$
|
40,535
|
$
|
26,841
|
$
|
13,694
|
$
|
6,563
|
$
|
7,131
|
||||||||||||||||||
|
For the three months ended March 31, 2015
|
||||||||||||||||||||||||||||
|
Revenues
|
Operations and Support Expenses
|
EBITDA
|
Depreciation and Amortization
|
Operating Income (Loss)
|
Equity in Net Income of Affiliates
|
Segment Contribution
|
||||||||||||||||||||||
|
Business Solutions
|
$
|
17,557
|
$
|
11,073
|
$
|
6,484
|
$
|
2,342
|
$
|
4,142
|
$
|
-
|
$
|
4,142
|
||||||||||||||
|
Entertainment Group
|
5,660
|
4,859
|
801
|
1,065
|
(264
|
)
|
(6
|
)
|
(270
|
)
|
||||||||||||||||||
|
Consumer Mobility
|
8,778
|
5,541
|
3,237
|
1,002
|
2,235
|
-
|
2,235
|
|||||||||||||||||||||
|
International
|
236
|
218
|
18
|
28
|
(10
|
)
|
-
|
(10
|
)
|
|||||||||||||||||||
|
Segment Total
|
$
|
32,231
|
$
|
21,691
|
$
|
10,540
|
$
|
4,437
|
$
|
6,103
|
$
|
(6
|
)
|
$
|
6,097
|
|||||||||||||
|
Corporate and Other
|
345
|
234
|
111
|
20
|
91
|
|||||||||||||||||||||||
|
Acquisition-related items
|
-
|
299
|
(299
|
)
|
121
|
(420
|
)
|
|||||||||||||||||||||
|
Certain Significant items
|
-
|
217
|
(217
|
)
|
-
|
(217
|
)
|
|||||||||||||||||||||
|
AT&T Inc.
|
$
|
32,576
|
$
|
22,441
|
$
|
10,135
|
$
|
4,578
|
$
|
5,557
|
||||||||||||||||||
|
Financial Data
|
||||||||
|
AT&T Inc.
|
||||||||
|
Non-GAAP Consolidated Reconciliation
|
||||||||
|
Adjusted EBITDA and Margin1
|
||||||||
|
Dollars in millions
|
||||||||
|
Unaudited
|
||||||||
|
Three Months Ended
|
||||||||
|
March 31,
|
||||||||
|
2015
|
2016
|
|||||||
|
Reported Operating Revenues
|
$
|
32,576
|
$
|
40,535
|
||||
|
Reported Operating Income
|
$
|
5,557
|
$
|
7,131
|
||||
|
Plus: Depreciation and Amortization
|
4,578
|
6,563
|
||||||
|
EBITDA2
|
$
|
10,135
|
$
|
13,694
|
||||
|
Adjustments:
|
||||||||
|
Wireless merger integration costs3
|
209
|
42
|
||||||
|
DIRECTV/Mexico merger integration costs4
|
89
|
254
|
||||||
|
Employee separation costs
|
217
|
25
|
||||||
|
Gain on transfer of wireless spectrum
|
-
|
(736
|
)
|
|||||
|
Adjusted EBITDA
|
$
|
10,650
|
$
|
13,279
|
||||
|
Adjusted EBITDA Margin*
|
32.7
|
%
|
32.8
|
%
|
||||
|
1 2015 Adjusted EBITDA has been restated to reflect the change in accounting for customer set-up and installation costs.
2 EBITDA is defined as operating income before depreciation and amortization.
3 Adjustments include Operations and Support expenses for domestic wireless integration costs.
4 Adjustments include DIRECTV merger integration costs and Operations and Support expenses for international wireless integration costs.
|
||||
|
Adjusted EBITDA and Margin are non-GAAP financial measures calculated by excluding from operating revenues and operating expenses certain significant items that are non-operational or non-recurring in nature, including dispositions and merger integration and transaction costs. Management believes that these measures provide relevant and useful information to investors and other users of our financial data in evaluating the effectiveness of our operations and underlying business trends.
Adjusted EBITDA should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP. Our calculation of Adjusted EBITDA, as presented, may differ from similarly titled measures reported by other companies.
*Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by Operating Revenues.
|
||||
|
Financial Data
|
||||||||||||||||||||
|
AT&T Inc.
|
||||||||||||||||||||
|
Non-GAAP Segment Reconciliation
|
||||||||||||||||||||
|
Business Solutions Segment EBITDA
|
||||||||||||||||||||
|
Dollars in millions
|
||||||||||||||||||||
|
Unaudited
|
||||||||||||||||||||
|
Three Months Ended
|
||||||||||||||||||||
|
3/31/15
|
6/30/15
|
9/30/15
|
12/31/15
|
3/31/16
|
||||||||||||||||
|
Segment Operating Revenues
|
||||||||||||||||||||
|
Total Segment Operating Revenues
|
$
|
17,557
|
$
|
17,664
|
$
|
17,692
|
$
|
18,214
|
$
|
17,609
|
||||||||||
|
Segment Operating Income
|
4,142
|
4,232
|
4,297
|
3,721
|
4,299
|
|||||||||||||||
|
Segment Operating Income Margin
|
23.6
|
%
|
24.0
|
%
|
24.3
|
%
|
20.4
|
%
|
24.4
|
%
|
||||||||||
|
Plus: Depreciation and amortization
|
2,342
|
2,460
|
2,474
|
2,513
|
2,508
|
|||||||||||||||
|
EBITDA1
|
$
|
6,484
|
$
|
6,692
|
$
|
6,771
|
$
|
6,234
|
$
|
6,807
|
||||||||||
|
EBITDA as a % of Revenues
|
36.9
|
%
|
37.9
|
%
|
38.3
|
%
|
34.2
|
%
|
38.7
|
%
|
||||||||||
|
Entertainment Group Segment EBITDA
|
||||||||||||||||||||
|
Three Months Ended
|
||||||||||||||||||||
|
3/31/15
|
6/30/15
|
9/30/15
|
12/31/15
|
3/31/16
|
||||||||||||||||
|
Segment Operating Revenues
|
||||||||||||||||||||
|
Total Segment Operating Revenues
|
$
|
5,660
|
$
|
5,782
|
$
|
10,858
|
$
|
12,994
|
$
|
12,658
|
||||||||||
|
Segment Operating Income
|
(264
|
)
|
(196
|
)
|
1,019
|
1,445
|
1,592
|
|||||||||||||
|
Segment Operating Income Margin
|
-4.7
|
%
|
-3.4
|
%
|
9.4
|
%
|
11.1
|
%
|
12.6
|
%
|
||||||||||
|
Plus: Depreciation and amortization
|
1,065
|
1,065
|
1,389
|
1,426
|
1,488
|
|||||||||||||||
|
EBITDA1
|
$
|
801
|
$
|
869
|
$
|
2,408
|
$
|
2,871
|
$
|
3,080
|
||||||||||
|
EBITDA as a % of Revenues
|
14.2
|
%
|
15.0
|
%
|
22.2
|
%
|
22.1
|
%
|
24.3
|
%
|
||||||||||
|
Entertainment Group Segment Adjusted Operating Revenues
|
||||||||||||||||||||
|
Three Months Ended
|
||||||||||||||||||||
|
3/31/15
|
3/31/16
|
|||||||||||||||||||
|
Segment Operating Revenues
|
$
|
5,660
|
$
|
12,658
|
||||||||||||||||
|
DIRECTV Operating Revenues2
|
6,456
|
|||||||||||||||||||
|
Adjustments:
|
||||||||||||||||||||
|
Other DIRECTV operations
|
88
|
|||||||||||||||||||
|
Revenue recognition
|
95
|
|||||||||||||||||||
|
Intercompany eliminations
|
(16
|
)
|
||||||||||||||||||
|
Adjusted Total Segment Operating Revenues
|
$
|
12,283
|
$
|
12,658
|
||||||||||||||||
|
YoY Growth
|
3.1
|
%
|
||||||||||||||||||
|
1 For AT&T, EBITDA is defined as operating income before depreciation and amortization. EBITDA differs from Segment Operating Income (Loss), as calculated in accordance with U.S. generally accepted accounting principles (GAAP), in that it excludes depreciation and amortization. EBITDA does not give effect to cash used for debt service requirements and thus does not reflect available funds for distributions, reinvestment or other discretionary uses. EBITDA is not presented as an alternative measure of operating results or cash flows from operations, as determined in accordance with GAAP. Our calculation of EBITDA, as presented, may differ from similarly titled measures reported by other companies.
2 Includes operating revenues for DIRECTV, as reported in DIRECTV's Form 10-Q for the period ended 3/31/15.
3 Includes certain adjustments to conform to AT&T methodology and presentation and eliminate intercompany transactions. Revenue recognition adjustment conforms DIRECTV's practice of recognizing revenue to be received under contractual commitments on a straight line basis over the minimum contract period to AT&T's method of limiting the revenue recognized to the monthly amounts billed.
|
||||||
|
Financial Data
|
||||||||||||||||||||
|
AT&T Inc.
|
||||||||||||||||||||
|
Non-GAAP Segment Reconciliation
|
||||||||||||||||||||
|
Consumer Mobility Segment EBITDA
|
||||||||||||||||||||
|
Dollars in millions
|
||||||||||||||||||||
|
Unaudited
|
||||||||||||||||||||
|
Three Months Ended
|
||||||||||||||||||||
|
3/31/15
|
6/30/15
|
9/30/15
|
12/31/15
|
3/31/16
|
||||||||||||||||
|
Segment Operating Revenues
|
||||||||||||||||||||
|
Total Segment Operating Revenues
|
$
|
8,778
|
$
|
8,755
|
$
|
8,784
|
$
|
8,749
|
$
|
8,328
|
||||||||||
|
Segment Operating Income
|
2,235
|
2,619
|
2,743
|
2,141
|
2,494
|
|||||||||||||||
|
Segment Operating Income Margin
|
25.5
|
%
|
29.9
|
%
|
31.2
|
%
|
24.5
|
%
|
29.9
|
%
|
||||||||||
|
Plus: Depreciation and amortization
|
1,002
|
934
|
976
|
939
|
922
|
|||||||||||||||
|
EBITDA1
|
$
|
3,237
|
$
|
3,553
|
$
|
3,719
|
$
|
3,080
|
$
|
3,416
|
||||||||||
|
EBITDA as a % of Revenues
|
36.9
|
%
|
40.6
|
%
|
42.3
|
%
|
35.2
|
%
|
41.0
|
%
|
||||||||||
|
International Segment EBITDA
|
||||||||||||||||||||
|
Three Months Ended
|
||||||||||||||||||||
|
3/31/15
|
6/30/15
|
9/30/15
|
12/31/15
|
3/31/16
|
||||||||||||||||
|
Segment Operating Revenues
|
||||||||||||||||||||
|
Total Segment Operating Revenues
|
$
|
236
|
$
|
491
|
$
|
1,526
|
$
|
1,849
|
$
|
1,667
|
||||||||||
|
Segment Operating Income
|
(10
|
)
|
(131
|
)
|
(83
|
)
|
(259
|
)
|
(198
|
)
|
||||||||||
|
Segment Operating Income Margin
|
-4.2
|
%
|
-26.7
|
%
|
-5.4
|
%
|
-14.0
|
%
|
-11.9
|
%
|
||||||||||
|
Plus: Depreciation and amortization
|
28
|
93
|
225
|
309
|
277
|
|||||||||||||||
|
EBITDA1
|
$
|
18
|
$
|
(38
|
)
|
$
|
142
|
$
|
50
|
$
|
79
|
|||||||||
|
EBITDA as a % of Revenues
|
7.6
|
%
|
-7.7
|
%
|
9.3
|
%
|
2.7
|
%
|
4.7
|
%
|
||||||||||
|
1 For AT&T, EBITDA is defined as operating income before depreciation and amortization. EBITDA differs from Segment Operating Income (Loss), as calculated in accordance with U.S. generally accepted accounting principles (GAAP), in that it excludes depreciation and amortization. EBITDA does not give effect to cash used for debt service requirements and thus does not reflect available funds for distributions, reinvestment or other discretionary uses. EBITDA is not presented as an alternative measure of operating results or cash flows from operations, as determined in accordance with GAAP. Our calculation of EBITDA, as presented, may differ from similarly titled measures reported by other companies.
|
|
Financial Data
|
||||||||||||||||||||
|
AT&T Inc.
|
||||||||||||||||||||
|
Non-GAAP Reconciliation - Supplemental
|
||||||||||||||||||||
|
AT&T Mobility EBITDA
|
||||||||||||||||||||
|
Dollars in millions
|
||||||||||||||||||||
|
Unaudited
|
||||||||||||||||||||
|
Three Months Ended
|
||||||||||||||||||||
|
3/31/15
|
6/30/15
|
9/30/15
|
12/31/15
|
3/31/16
|
||||||||||||||||
|
Operating Revenues
|
||||||||||||||||||||
|
Service Revenues
|
$
|
14,812
|
$
|
15,115
|
$
|
15,095
|
$
|
14,815
|
$
|
14,798
|
||||||||||
|
Equipment Revenues
|
3,374
|
3,189
|
3,234
|
4,071
|
3,156
|
|||||||||||||||
|
Total Operating Revenues
|
$
|
18,186
|
$
|
18,304
|
$
|
18,329
|
$
|
18,886
|
$
|
17,954
|
||||||||||
|
Operating Income
|
4,709
|
5,300
|
5,418
|
4,376
|
5,274
|
|||||||||||||||
|
Operating Income Margin
|
25.9
|
%
|
29.0
|
%
|
29.6
|
%
|
23.2
|
%
|
29.4
|
%
|
||||||||||
|
Plus: Depreciation and amortization
|
2,005
|
2,031
|
2,046
|
2,031
|
2,056
|
|||||||||||||||
|
EBITDA1
|
$
|
6,714
|
$
|
7,331
|
$
|
7,464
|
$
|
6,407
|
$
|
7,330
|
||||||||||
|
YoY Growth
|
9.2
|
%
|
||||||||||||||||||
|
EBITDA as a % of Revenues
|
36.9
|
%
|
40.1
|
%
|
40.7
|
%
|
33.9
|
%
|
40.8
|
%
|
||||||||||
|
EBITDA as a % of Service Revenues
|
45.3
|
%
|
48.5
|
%
|
49.4
|
%
|
43.2
|
%
|
49.5
|
%
|
||||||||||
|
Mexico EBITDA
|
||||||||||||||||||||
|
Dollars in millions
|
||||||||||||||||||||
|
Unaudited
|
||||||||||||||||||||
|
Three Months Ended
|
||||||||||||||||||||
|
3/31/15
|
6/30/15
|
9/30/15
|
12/31/15
|
3/31/16
|
||||||||||||||||
|
Operating Revenues
|
||||||||||||||||||||
|
Total Operating Revenues
|
$
|
236
|
$
|
491
|
$
|
581
|
$
|
643
|
$
|
537
|
||||||||||
|
Operating Income
|
(10
|
)
|
(131
|
)
|
(134
|
)
|
(258
|
)
|
(251
|
)
|
||||||||||
|
Operating Income Margin
|
-4.2
|
%
|
-26.7
|
%
|
-23.1
|
%
|
-40.1
|
%
|
-46.7
|
%
|
||||||||||
|
Plus: Depreciation and amortization
|
28
|
93
|
67
|
89
|
81
|
|||||||||||||||
|
EBITDA1
|
$
|
18
|
$
|
(38
|
)
|
$
|
(67
|
)
|
$
|
(169
|
)
|
$
|
(170
|
)
|
||||||
|
EBITDA as a % of Revenues
|
7.6
|
%
|
-7.7
|
%
|
-11.5
|
%
|
-26.3
|
%
|
-31.7
|
%
|
||||||||||
|
1 For AT&T, EBITDA is defined as operating income before depreciation and amortization. EBITDA service margin is calculated as EBITDA divided by service revenues. EBITDA differs from Segment Operating Income (Loss), as calculated in accordance with U.S. generally accepted accounting principles (GAAP), in that it excludes depreciation and amortization. EBITDA does not give effect to cash used for debt service requirements and thus does not reflect available funds for distributions, reinvestment or other discretionary uses. EBITDA is not presented as an alternative measure of operating results or cash flows from operations, as determined in accordance with GAAP. Our calculation of EBITDA, as presented, may differ from similarly titled measures reported by other companies.
|
||||||
|
Financial Data
|
||||||||
|
AT&T Inc.
|
||||||||
|
Non-GAAP Consolidated Reconciliation
|
||||||||
|
Adjusted Diluted EPS1
|
||||||||
|
Unaudited
|
||||||||
|
Three Months Ended
|
||||||||
|
March 31,
|
||||||||
|
2015
|
2016
|
|||||||
|
Reported Diluted EPS
|
$
|
0.63
|
$
|
0.61
|
||||
|
Adjustments:
|
||||||||
|
Amortization of intangible assets
|
0.01
|
0.14
|
||||||
|
Merger and integration costs2
|
0.04
|
0.03
|
||||||
|
Tax-related item
|
(0.05
|
)
|
-
|
|||||
|
Gain on transfer of wireless spectrum
|
-
|
(0.08
|
)
|
|||||
|
Other3
|
0.02
|
0.02
|
||||||
|
Adjusted Diluted EPS
|
$
|
0.65
|
$
|
0.72
|
||||
|
Year-over-year growth - Adjusted
|
10.8
|
%
|
||||||
|
Weighted Average Common Shares Outstanding
|
||||||||
|
with Dilution (000,000)
|
5,219
|
6,190
|
||||||
|
1 2015 Adjusted Diluted EPS has been restated to reflect the change in accounting for customer set-up and installation costs.
2 Adjustments include DIRECTV merger and integration costs, domestic and international wireless merger and integration costs.
3 Other adjustments include employee separation costs and other costs.
|
|
Adjusted Diluted EPS is a non-GAAP financial measure calculated by excluding from operating revenues, operating expenses, and income tax expense certain significant items that are non-operational or non-recurring in nature, including dispositions and merger integration and transaction costs. Management believes that this measure provides relevant and useful information to investors and other users of our financial data in evaluating the effectiveness of our operations and underlying business trends.
Adjusted Diluted EPS should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP. Our calculation of Adjusted Diluted EPS, as presented, may differ from similarly titled measures reported by other companies.
Sum of components may not tie due to rounding.
|
|
Financial Data
|
||||||||
|
AT&T Inc.
|
||||||||
|
Non-GAAP Consolidated Reconciliation
|
||||||||
|
Capital Investment
|
||||||||
|
Dollars in millions
|
||||||||
|
Unaudited
|
||||||||
|
Three Months
|
||||||||
|
Ended
|
||||||||
|
March 31,
|
||||||||
|
2016
|
||||||||
|
Reported construction and capital expenditures
|
$
|
4,669
|
||||||
|
Add: Vendor financing for capital investments in Mexico
|
43
|
|||||||
|
Capital Investment
|
$
|
4,712
|
||||||
|
Free Cash Flow
|
||||||||
|
Dollars in millions
|
||||||||
|
Unaudited
|
||||||||
|
Three Months Ended
|
||||||||
|
March 31,
|
||||||||
|
2015
|
2016
|
|||||||
|
Net cash provided by operating activities
|
$
|
6,738
|
$
|
7,900
|
||||
|
Less: Construction and capital expenditures
|
(3,971
|
)
|
(4,669
|
)
|
||||
|
Free Cash Flow
|
$
|
2,767
|
$
|
3,231
|
||||
|
Free Cash Flow after Dividends
|
||||||||
|
Dollars in millions
|
||||||||
|
Unaudited
|
||||||||
|
Three Months Ended
|
||||||||
|
March 31,
|
||||||||
|
2015
|
2016
|
|||||||
|
Net cash provided by operating activities
|
$
|
6,738
|
$
|
7,900
|
||||
|
Less: Construction and capital expenditures
|
(3,971
|
)
|
(4,669
|
)
|
||||
|
Free Cash Flow
|
2,767
|
3,231
|
||||||
|
Less: Dividends paid
|
(2,434
|
)
|
(2,947
|
)
|
||||
|
Free Cash Flow after Dividends
|
$
|
333
|
$
|
284
|
||||
|
Capital Investment is a non-GAAP financial measure calculated by including financing arrangements for capital improvements of the wireless network in Mexico. These favorable payment terms are considered vendor financing arrangements and are reported as repayments of debt instead of capital expenditures. Management believes that Capital Investment provides relevant and useful information to investors and other users of our financial data in evaluating the investment in our business.
Free cash flow includes reimbursements of certain postretirement benefits paid.
Free cash flow is defined as cash from operations minus construction and capital expenditures. Free cash flow after dividends is defined as cash from operations minus construction, capital expenditures and dividends. We believe these metrics provide useful information to our investors because management regularly reviews free cash flow as an important indicator of the cash generated by normal business operations, including capital expenditures, and makes decisions based on it. Management also views free cash flow as a measure of cash available to pay debt and return cash to shareowners.
|
||||
|
Financial Data
|
||||||||
|
AT&T Inc.
|
||||||||
|
Non-GAAP Consolidated Reconciliation
|
||||||||
|
Annualized Net-Debt-to-Adjusted-EBITDA Ratio
|
||||||||
|
Dollars in millions
|
||||||||
|
Unaudited
|
||||||||
|
Three Months Ended
|
||||||||
|
3/31/16
|
YTD 2016
|
|||||||
|
Operating Revenues
|
40,535
|
40,535
|
||||||
|
Operating Expenses
|
33,404
|
33,404
|
||||||
|
Total Operating Income
|
7,131
|
7,131
|
||||||
|
Add Back Depreciation and Amortization
|
6,563
|
6,563
|
||||||
|
Consolidated EBITDA
|
13,694
|
13,694
|
||||||
|
Add Back:
|
||||||||
|
Wireless merger integration costs1
|
42
|
42
|
||||||
|
DIRECTV/Mexico merger integration costs2
|
254
|
254
|
||||||
|
Gain on transfer of wireless spectrum
|
(736
|
)
|
(736
|
)
|
||||
|
Total Adjusted Consolidated EBITDA
|
13,254
|
13,254
|
||||||
|
Annualized Adjusted Consolidated EBITDA
|
$
|
53,016
|
||||||
|
End-of-period current debt
|
8,399
|
|||||||
|
End-of-period long-term debt
|
122,104
|
|||||||
|
Total End-of-Period Debt
|
130,503
|
|||||||
|
Less Cash and Cash Equivalents
|
10,008
|
|||||||
|
Net Debt Balance
|
$
|
120,495
|
||||||
|
Annualized Net-Debt-to-Adjusted-EBITDA Ratio
|
2.27
|
|||||||
|
1 Adjustments include Operations and Support expenses for domestic wireless integration costs.
2 Adjustments include DIRECTV merger and integration costs and Operations and Support expenses for international wireless integration costs.
Net-Debt-to-EBITDA ratios are non-GAAP financial measures frequently used by investors and credit rating agencies. Management believes these measures provide relevant and useful information to investors and other users of our financial data. Net debt is calculated by subtracting cash and cash equivalents and certificates of deposit and time deposits that are greater than 90 days from the sum of debt maturing within one year and long-term debt. The Net-Debt-to-EBITDA ratio is calculated by dividing the Net Debt by annualized EBITDA. Annualized EBITDA is calculated by annualizing the year-to-date EBITDA.
Our calculation of EBITDA, as presented, may differ from similarly titled measures reported by other companies.
|
|||
|
Financial Data
|
||||||||
|
AT&T Inc.
|
||||||||
|
Non-GAAP Consolidated Reconciliation
|
||||||||
|
Adjusted Operating Income and Margin1
|
||||||||
|
Dollars in millions
|
||||||||
|
Unaudited
|
||||||||
|
Three Months Ended
|
||||||||
|
March 31,
|
||||||||
|
2015
|
2016
|
|||||||
|
Operating Revenues
|
$
|
32,576
|
$
|
40,535
|
||||
|
Reported Operating Income
|
$
|
5,557
|
$
|
7,131
|
||||
|
Adjustments:
|
||||||||
|
Amortization of intangible assets
|
50
|
1,351
|
||||||
|
Wireless merger integration costs2
|
209
|
42
|
||||||
|
DIRECTV/Mexico merger integration costs3
|
89
|
254
|
||||||
|
Employee separation costs
|
217
|
25
|
||||||
|
Gain on transfer of wireless spectrum
|
-
|
(736
|
)
|
|||||
|
Adjusted Operating Income
|
$
|
6,122
|
$
|
8,067
|
||||
|
Adjusted Operating Income Margin*
|
18.8
|
%
|
19.9
|
%
|
||||
|
1 2015 Adjusted Operating Income and Margin have been restated to reflect the change in accounting for customer set-up and installation costs.
2 Adjustments include Operations and Support expenses for domestic wireless integration costs.
3 Adjustments include DIRECTV merger integration costs and Operations and Support expenses for international wireless integration costs.
|
|
Adjusted Operating Income and Margin are non-GAAP financial measures calculated by excluding from operating revenues and operating expenses significant items that are non-operational or non-recurring in nature, including dispositions and merger integration and transaction costs. Management believes that these measures provide relevant and useful information to investors and other users of our financial data in evaluating the effectiveness of our operations and underlying business trends.
Adjusted Operating Income and Margin should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP. Our calculation of Adjusted Operating Income and Margin, as presented, may differ from similarly titled measures reported by other companies.
*Adjusted Operating Income Margin is calculated by dividing Adjusted Operating Income by Operating Revenues.
|
||||