Attached files
|
AT&T Inc.
|
||||||||||||
|
Financial Data
|
||||||||||||
|
Consolidated Statements of Income
|
||||||||||||
|
Dollars in millions except per share amounts
|
Three Months Ended
|
|||||||||||
|
Unaudited
|
March 31,
|
Percent
|
||||||||||
|
2017
|
2016
|
Change
|
||||||||||
|
Operating Revenues
|
||||||||||||
|
Service
|
$
|
36,456
|
$
|
37,101
|
-1.7
|
%
|
||||||
|
Equipment
|
2,909
|
3,434
|
-15.3
|
%
|
||||||||
|
Total Operating Revenues
|
39,365
|
40,535
|
-2.9
|
%
|
||||||||
|
Operating Expenses
|
||||||||||||
|
Cost of services and sales
|
||||||||||||
|
Equipment
|
3,848
|
4,375
|
-12.0
|
%
|
||||||||
|
Broadcast, programming and operations
|
4,974
|
4,629
|
7.5
|
%
|
||||||||
|
Other cost of services (exclusive of depreciation
and amortization shown separately below)
|
9,065
|
9,396
|
-3.5
|
%
|
||||||||
|
Selling, general and administrative
|
8,487
|
8,441
|
0.5
|
%
|
||||||||
|
Depreciation and amortization
|
6,127
|
6,563
|
-6.6
|
%
|
||||||||
|
Total Operating Expenses
|
32,501
|
33,404
|
-2.7
|
%
|
||||||||
|
Operating Income
|
6,864
|
7,131
|
-3.7
|
%
|
||||||||
|
Interest Expense
|
(1,293
|
)
|
(1,207
|
)
|
-7.1
|
%
|
||||||
|
Equity in Net Income (Loss) of Affiliates
|
(173
|
)
|
13
|
-
|
%
|
|||||||
|
Other Income (Expense) - Net
|
(20
|
)
|
70
|
-
|
%
|
|||||||
|
Income Before Income Taxes
|
5,378
|
6,007
|
-10.5
|
%
|
||||||||
|
Income Tax Expense
|
1,804
|
2,122
|
-15.0
|
%
|
||||||||
|
Net Income
|
3,574
|
3,885
|
-8.0
|
%
|
||||||||
|
Less: Net Income Attributable to
Noncontrolling Interest
|
(105
|
)
|
(82
|
)
|
-28.0
|
%
|
||||||
|
Net Income Attributable to AT&T
|
$
|
3,469
|
$
|
3,803
|
-8.8
|
%
|
||||||
|
Basic Earnings Per Share Attributable to AT&T
|
$
|
0.56
|
$
|
0.62
|
-9.7
|
%
|
||||||
|
Weighted Average Common
Shares Outstanding (000,000)
|
6,166
|
6,172
|
-0.1
|
%
|
||||||||
|
Diluted Earnings Per Share Attributable to AT&T
|
$
|
0.56
|
$
|
0.61
|
-8.2
|
%
|
||||||
|
Weighted Average Common
Shares Outstanding with Dilution (000,000)
|
6,186
|
6,190
|
-0.1
|
%
|
||||||||
|
AT&T Inc.
|
||||||||
|
Financial Data
|
||||||||
|
Consolidated Balance Sheets
|
||||||||
|
Dollars in millions
|
||||||||
|
Unaudited
|
Mar. 31,
|
Dec. 31,
|
||||||
|
2017
|
2016
|
|||||||
|
Assets
|
||||||||
|
Current Assets
|
||||||||
|
Cash and cash equivalents
|
$
|
14,884
|
$
|
5,788
|
||||
|
Accounts receivable - net of allowances for doubtful accounts of $699 and $661
|
15,078
|
16,794
|
||||||
|
Prepaid expenses
|
1,418
|
1,555
|
||||||
|
Other current assets
|
14,347
|
14,232
|
||||||
|
Total current assets
|
45,727
|
38,369
|
||||||
|
Property, Plant and Equipment - Net
|
125,292
|
124,899
|
||||||
|
Goodwill
|
105,593
|
105,207
|
||||||
|
Licenses
|
94,617
|
94,176
|
||||||
|
Customer Lists and Relationships - Net
|
13,366
|
14,243
|
||||||
|
Other Intangible Assets - Net
|
8,295
|
8,441
|
||||||
|
Investments in Equity Affiliates
|
1,551
|
1,674
|
||||||
|
Other Assets
|
17,462
|
16,812
|
||||||
|
Total Assets
|
$
|
411,903
|
$
|
403,821
|
||||
|
Liabilities and Stockholders' Equity
|
||||||||
|
Current Liabilities
|
||||||||
|
Debt maturing within one year
|
$
|
12,681
|
$
|
9,832
|
||||
|
Accounts payable and accrued liabilities
|
27,120
|
31,138
|
||||||
|
Advanced billing and customer deposits
|
4,493
|
4,519
|
||||||
|
Accrued taxes
|
3,384
|
2,079
|
||||||
|
Dividends payable
|
3,012
|
3,008
|
||||||
|
Total current liabilities
|
50,690
|
50,576
|
||||||
|
Long-Term Debt
|
120,568
|
113,681
|
||||||
|
Deferred Credits and Other Noncurrent Liabilities
|
||||||||
|
Deferred income taxes
|
61,100
|
60,128
|
||||||
|
Postemployment benefit obligation
|
33,404
|
33,578
|
||||||
|
Other noncurrent liabilities
|
21,160
|
21,748
|
||||||
|
Total deferred credits and other noncurrent liabilities
|
115,664
|
115,454
|
||||||
|
Stockholders' Equity
|
||||||||
|
Common stock
|
6,495
|
6,495
|
||||||
|
Additional paid-in capital
|
89,411
|
89,604
|
||||||
|
Retained earnings
|
35,175
|
34,734
|
||||||
|
Treasury stock
|
(12,400
|
)
|
(12,659
|
)
|
||||
|
Accumulated other comprehensive income
|
5,160
|
4,961
|
||||||
|
Noncontrolling interest
|
1,140
|
975
|
||||||
|
Total stockholders' equity
|
124,981
|
124,110
|
||||||
|
Total Liabilities and Stockholders' Equity
|
$
|
411,903
|
$
|
403,821
|
||||
|
AT&T Inc.
|
||||||||
|
Financial Data
|
||||||||
|
Consolidated Statements of Cash Flows
|
||||||||
|
Dollars in millions
|
Three Months Ended | |||||||
|
Unaudited
|
March 31,
|
|||||||
|
2017
|
2016
|
|||||||
|
Operating Activities
|
||||||||
|
Net income
|
$
|
3,574
|
$
|
3,885
|
||||
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
|
Depreciation and amortization
|
6,127
|
6,563
|
||||||
|
Undistributed loss (earnings) from investments in equity affiliates
|
182
|
(13
|
)
|
|||||
|
Provision for uncollectible accounts
|
393
|
374
|
||||||
|
Deferred income tax expense
|
480
|
1,346
|
||||||
|
Net loss (gain) from sale of investments, net of impairments
|
61
|
(44
|
)
|
|||||
|
Changes in operating assets and liabilities:
|
||||||||
|
Accounts receivable
|
445
|
43
|
||||||
|
Other current assets
|
228
|
1,319
|
||||||
|
Accounts payable and other accrued liabilities
|
(1,778
|
)
|
(3,990
|
)
|
||||
|
Equipment installment receivables and related sales
|
579
|
454
|
||||||
|
Deferred fulfillment costs
|
(436
|
)
|
(542
|
)
|
||||
|
Retirement benefit funding
|
(140
|
)
|
(140
|
)
|
||||
|
Other - net
|
(497
|
)
|
(1,355
|
)
|
||||
|
Total adjustments
|
5,644
|
4,015
|
||||||
|
Net Cash Provided by Operating Activities
|
9,218
|
7,900
|
||||||
|
Investing Activities
|
||||||||
|
Capital expenditures:
|
||||||||
|
Purchase of property and equipment
|
(5,784
|
)
|
(4,451
|
)
|
||||
|
Interest during construction
|
(231
|
)
|
(218
|
)
|
||||
|
Acquisitions, net of cash acquired
|
(162
|
)
|
(165
|
)
|
||||
|
Dispositions
|
6
|
81
|
||||||
|
Sales of securities, net
|
-
|
445
|
||||||
|
Net Cash Used in Investing Activities
|
(6,171
|
)
|
(4,308
|
)
|
||||
|
Financing Activities
|
||||||||
|
Net change in short-term borrowings with original maturities of three months or less
|
(1
|
)
|
-
|
|||||
|
Issuance of long-term debt
|
12,440
|
5,978
|
||||||
|
Repayment of long-term debt
|
(3,053
|
)
|
(2,296
|
)
|
||||
|
Purchase of treasury stock
|
(177
|
)
|
-
|
|||||
|
Issuance of treasury stock
|
21
|
89
|
||||||
|
Dividends paid
|
(3,009
|
)
|
(2,947
|
)
|
||||
|
Other
|
(172
|
)
|
471
|
|||||
|
Net Cash Provided by Financing Activities
|
6,049
|
1,295
|
||||||
|
Net increase in cash and cash equivalents
|
9,096
|
4,887
|
||||||
|
Cash and cash equivalents beginning of year
|
5,788
|
5,121
|
||||||
|
Cash and Cash Equivalents End of Period
|
$
|
14,884
|
$
|
10,008
|
||||
|
AT&T Inc.
|
||||||||||||
|
Consolidated Supplementary Data
|
||||||||||||
|
Supplementary Financial Data
|
||||||||||||
|
Dollars in millions except per share amounts
|
Three Months Ended
|
|||||||||||
|
Unaudited
|
March 31,
|
Percent
|
||||||||||
|
2017
|
2016
|
Change
|
||||||||||
|
Capital expenditures
|
||||||||||||
|
Purchase of property and equipment
|
$
|
5,784
|
$
|
4,451
|
29.9
|
%
|
||||||
|
Interest during construction
|
231
|
218
|
6.0
|
%
|
||||||||
|
Total Capital Expenditures
|
$
|
6,015
|
$
|
4,669
|
28.8
|
%
|
||||||
|
Dividends Declared per Share
|
$
|
0.49
|
$
|
0.48
|
2.1
|
%
|
||||||
|
End of Period Common Shares Outstanding (000,000)
|
6,147
|
6,156
|
-0.1
|
%
|
||||||||
|
Debt Ratio
|
51.6
|
%
|
51.2
|
%
|
40
|
BP
|
||||||
|
Total Employees
|
264,530
|
280,870
|
-5.8
|
%
|
||||||||
|
Supplementary Operating Data
|
||||||||||||
|
Subscribers and connections in thousands
|
||||||||||||
|
Unaudited
|
March 31,
|
Percent
|
||||||||||
|
2017
|
2016
|
Change
|
||||||||||
|
Wireless Subscribers
|
||||||||||||
|
Domestic
|
134,218
|
130,445
|
2.9
|
%
|
||||||||
|
Mexico
|
12,606
|
9,213
|
36.8
|
%
|
||||||||
|
Total Wireless Subscribers
|
146,824
|
139,658
|
5.1
|
%
|
||||||||
|
Total Branded Wireless Subscribers
|
103,532
|
98,158
|
5.5
|
%
|
||||||||
|
Video Connections
|
||||||||||||
|
Domestic
|
25,060
|
25,372
|
-1.2
|
%
|
||||||||
|
PanAmericana
|
8,090
|
7,094
|
14.0
|
%
|
||||||||
|
Brazil
|
5,588
|
5,342
|
4.6
|
%
|
||||||||
|
Total Video Connections
|
38,738
|
37,808
|
2.5
|
%
|
||||||||
|
Broadband Connections
|
||||||||||||
|
IP
|
14,110
|
13,470
|
4.8
|
%
|
||||||||
|
DSL
|
1,585
|
2,294
|
-30.9
|
%
|
||||||||
|
Total Broadband Connections
|
15,695
|
15,764
|
-0.4
|
%
|
||||||||
|
Voice Connections
|
||||||||||||
|
Network Access Lines
|
13,363
|
15,975
|
-16.4
|
%
|
||||||||
|
U-verse VoIP Connections
|
5,858
|
5,484
|
6.8
|
%
|
||||||||
|
Total Retail Consumer Voice Connections
|
19,221
|
21,459
|
-10.4
|
%
|
||||||||
|
Three Months Ended
|
||||||||||||
|
March 31,
|
Percent
|
|||||||||||
|
2017
|
2016
|
Change
|
||||||||||
|
Wireless Net Additions
|
||||||||||||
|
Domestic
|
2,081
|
1,781
|
16.8
|
%
|
||||||||
|
Mexico
|
633
|
529
|
19.7
|
%
|
||||||||
|
Total Wireless Net Additions
|
2,714
|
2,310
|
17.5
|
%
|
||||||||
|
Total Branded Wireless Net Additions
|
738
|
1,195
|
-38.2
|
%
|
||||||||
|
Video Net Additions
|
||||||||||||
|
Domestic
|
(233
|
)
|
(52
|
)
|
-
|
%
|
||||||
|
PanAmericana
|
52
|
28
|
85.7
|
%
|
||||||||
|
Brazil
|
39
|
(101
|
)
|
-
|
%
|
|||||||
|
Total Video Net Additions
|
(142
|
)
|
(125
|
)
|
-13.6
|
%
|
||||||
|
Broadband Net Additions
|
||||||||||||
|
IP
|
246
|
202
|
21.8
|
%
|
||||||||
|
DSL
|
(156
|
)
|
(216
|
)
|
27.8
|
%
|
||||||
|
Total Broadband Net Additions
|
90
|
(14
|
)
|
-
|
%
|
|||||||
|
BUSINESS SOLUTIONS
|
||||||||||||
|
The Business Solutions segment provides services to business customers, including multinational companies; governmental and wholesale customers; and individual subscribers who purchase wireless services through employer-sponsored plans. We provide advanced IP-based services including Virtual Private Networks (VPN); Ethernet-related products and broadband, collectively referred to as strategic business services; as well as traditional data and voice products. We utilize our wireless and wired networks (referred to as "wired" or "wireline") to provide a complete communications solution to our business customers.
|
||||||||||||
|
Segment Results
|
||||||||||||
|
Dollars in millions
|
Three Months Ended
|
|||||||||||
|
Unaudited
|
March 31,
|
Percent
|
||||||||||
|
2017
|
2016
|
Change
|
||||||||||
|
Segment Operating Revenues
|
||||||||||||
|
Wireless service
|
$
|
7,929
|
$
|
7,855
|
0.9
|
%
|
||||||
|
Fixed strategic services
|
2,974
|
2,751
|
8.1
|
%
|
||||||||
|
Legacy voice and data services
|
3,630
|
4,373
|
-17.0
|
%
|
||||||||
|
Other service and equipment
|
817
|
859
|
-4.9
|
%
|
||||||||
|
Wireless equipment
|
1,498
|
1,771
|
-15.4
|
%
|
||||||||
|
Total Segment Operating Revenues
|
16,848
|
17,609
|
-4.3
|
%
|
||||||||
|
Segment Operating Expenses
|
||||||||||||
|
Operations and support
|
10,176
|
10,802
|
-5.8
|
%
|
||||||||
|
Depreciation and amortization
|
2,312
|
2,508
|
-7.8
|
%
|
||||||||
|
Total Segment Operating Expenses
|
12,488
|
13,310
|
-6.2
|
%
|
||||||||
|
Segment Operating Income
|
4,360
|
4,299
|
1.4
|
%
|
||||||||
|
Equity in Net Income of Affiliates
|
-
|
-
|
-
|
%
|
||||||||
|
Segment Contribution
|
$
|
4,360
|
$
|
4,299
|
1.4
|
%
|
||||||
|
Segment Operating Income Margin
|
25.9
|
% |
24.4
|
%
|
150
|
BP
|
||||||
|
Supplementary Operating Data
|
||||||||||||
|
Subscribers and connections in thousands
|
||||||||||||
|
Unaudited
|
March 31,
|
Percent
|
||||||||||
|
2017
|
2016
|
Change
|
||||||||||
|
Business Solutions Wireless Subscribers
|
||||||||||||
|
Postpaid/Branded
|
50,839
|
48,844
|
4.1
|
%
|
||||||||
|
Reseller
|
76
|
64
|
18.8
|
%
|
||||||||
|
Connected Devices
|
31,439
|
26,863
|
17.0
|
%
|
||||||||
|
Total Business Solutions Wireless Subscribers
|
82,354
|
75,771
|
8.7
|
%
|
||||||||
|
Business Solutions IP Broadband Connections
|
980
|
928
|
5.6
|
%
|
||||||||
|
Three Months Ended
|
||||||||||||
|
March 31,
|
Percent
|
|||||||||||
|
2017
|
2016
|
Change
|
||||||||||
|
Business Solutions Wireless Net Additions1
|
||||||||||||
|
Postpaid/Branded
|
(125
|
)
|
133
|
-
|
%
|
|||||||
|
Reseller
|
6
|
(22
|
)
|
-
|
%
|
|||||||
|
Connected Devices
|
2,553
|
1,578
|
61.8
|
%
|
||||||||
|
Total Business Solutions Wireless Net Additions
|
2,434
|
1,689
|
44.1
|
%
|
||||||||
|
Business Solutions Wireless Postpaid Churn1
|
1.07
|
%
|
1.02
|
%
|
5
|
BP
|
||||||
|
Business Solutions IP Broadband
Net Additions
|
4
|
17
|
-76.5
|
%
|
||||||||
|
1 2017 excludes the impact of the 2G shutdown, which was reflected in beginning of period subscriber counts.
|
||||||||||||
|
ENTERTAINMENT GROUP
|
|||||||||||||
|
The Entertainment Group segment provides video, internet, voice communication, and interactive and targeted advertising services to customers located in the U.S. or in U.S. territories. We utilize our copper and IP-based wired network and/or our satellite technology.
|
|||||||||||||
|
Segment Results
|
|||||||||||||
|
Dollars in millions
|
Three Months Ended
|
||||||||||||
|
Unaudited
|
March 31,
|
Percent
|
|||||||||||
|
2017
|
2016
|
Change
|
|||||||||||
|
Segment Operating Revenues
|
|||||||||||||
|
Video entertainment
|
$
|
9,020
|
|
$
|
8,904
|
1.3
|
%
|
||||||
|
High-speed internet
|
1,941
|
1,803
|
7.7
|
%
|
|||||||||
|
Legacy voice and data services
|
1,056
|
1,313
|
-19.6
|
%
|
|||||||||
|
Other service and equipment
|
606
|
638
|
-5.0
|
%
|
|||||||||
|
Total Segment Operating Revenues
|
12,623
|
12,658
|
-0.3
|
%
|
|||||||||
|
Segment Operating Expenses
|
|||||||||||||
|
Operations and support
|
9,601
|
9,578
|
0.2
|
%
|
|||||||||
|
Depreciation and amortization
|
1,419
|
1,488
|
-4.6
|
%
|
|||||||||
|
Total Segment Operating Expenses
|
11,020
|
11,066
|
-0.4
|
%
|
|||||||||
|
Segment Operating Income
|
1,603
|
1,592
|
0.7
|
%
|
|||||||||
|
Equity in Net Income (Loss) of Affiliates
|
(6
|
)
|
3
|
-
|
%
|
||||||||
|
Segment Contribution
|
$
|
1,597
|
|
$
|
1,595
|
0.1
|
%
|
||||||
|
Segment Operating Income Margin
|
12.7
|
%
|
|
12.6
|
%
|
10
|
BP
|
||||||
|
Supplementary Operating Data
|
|||||||||||||
|
Subscribers and connections in thousands
|
|||||||||||||
|
Unaudited
|
March 31,
|
Percent
|
|||||||||||
|
2017
|
2016
|
Change
|
|||||||||||
|
Linear Video Connections
|
|||||||||||||
|
Satellite
|
21,012
|
20,112
|
4.5
|
%
|
|||||||||
|
U-verse
|
4,020
|
5,232
|
-23.2
|
%
|
|||||||||
|
Total Linear Video Connections
|
25,032
|
25,344
|
-1.2
|
%
|
|||||||||
|
Broadband Connections
|
|||||||||||||
|
IP
|
13,130
|
12,542
|
4.7
|
%
|
|||||||||
|
DSL
|
1,164
|
1,749
|
-33.4
|
%
|
|||||||||
|
Total Broadband Connections
|
14,294
|
14,291
|
-
|
%
|
|||||||||
|
Voice Connections
|
|||||||||||||
|
Retail Consumer Switched Access Lines
|
5,533
|
6,888
|
-19.7
|
%
|
|||||||||
|
U-verse Consumer VoIP Connections
|
5,470
|
5,225
|
4.7
|
%
|
|||||||||
|
Total Retail Consumer Voice Connections
|
11,003
|
12,113
|
-9.2
|
%
|
|||||||||
|
Three Months Ended
|
|||||||||||||
|
March 31,
|
Percent
|
||||||||||||
|
2017
|
2016
|
Change
|
|||||||||||
|
Linear Video Net Additions1
|
|||||||||||||
|
Satellite
|
-
|
328
|
-
|
%
|
|||||||||
|
U-verse
|
(233
|
)
|
(382
|
)
|
39.0
|
%
|
|||||||
|
Total Linear Video Net Additions
|
(233
|
)
|
(54
|
)
|
-
|
%
|
|||||||
|
Broadband Net Additions
|
|||||||||||||
|
IP
|
242
|
186
|
30.1
|
%
|
|||||||||
|
DSL
|
(127
|
)
|
(181
|
)
|
29.8
|
%
|
|||||||
|
Total Broadband Net Additions
|
115
|
5
|
-
|
%
|
|||||||||
|
1 Includes the impact of customers that migrated to DIRECTV NOW.
|
|||||||||||||
|
CONSUMER MOBILITY
|
||||||||||||
|
The Consumer Mobility segment provides nationwide wireless service to consumers and wholesale and resale wireless subscribers located in the U.S. or in U.S. territories. We utilize our U.S. wireless network to provide voice and data services, including high-speed internet, video, and home monitoring services.
|
||||||||||||
|
Segment Results
|
||||||||||||
|
Dollars in millions
|
Three Months Ended
|
|||||||||||
|
Unaudited
|
March 31,
|
Percent
|
||||||||||
|
2017
|
2016
|
Change
|
||||||||||
|
Segment Operating Revenues
|
||||||||||||
|
Service
|
$
|
6,609
|
$
|
6,943
|
-4.8
|
%
|
||||||
|
Equipment
|
1,131
|
1,385
|
-18.3
|
%
|
||||||||
|
Total Segment Operating Revenues
|
7,740
|
8,328
|
-7.1
|
%
|
||||||||
|
Segment Operating Expenses
|
||||||||||||
|
Operations and support
|
4,528
|
4,912
|
-7.8
|
%
|
||||||||
|
Depreciation and amortization
|
873
|
922
|
-5.3
|
%
|
||||||||
|
Total Segment Operating Expenses
|
5,401
|
5,834
|
-7.4
|
%
|
||||||||
|
Segment Operating Income
|
2,339
|
2,494
|
-6.2
|
%
|
||||||||
|
Equity in Net Income of Affiliates
|
-
|
-
|
-
|
%
|
||||||||
|
Segment Contribution
|
$
|
2,339
|
$
|
2,494
|
-6.2
|
%
|
||||||
|
Segment Operating Income Margin
|
30.2
|
%
|
29.9
|
%
|
30
|
BP
|
||||||
|
Supplementary Operating Data
|
||||||||||||
|
Subscribers and connections in thousands
|
||||||||||||
|
Unaudited
|
March 31,
|
Percent
|
||||||||||
|
2017
|
2016
|
Change
|
||||||||||
|
Consumer Mobility Subscribers
|
||||||||||||
|
Postpaid
|
26,510
|
28,294
|
-6.3
|
%
|
||||||||
|
Prepaid
|
13,844
|
12,171
|
13.7
|
%
|
||||||||
|
Branded
|
40,354
|
40,465
|
-0.3
|
%
|
||||||||
|
Reseller
|
10,549
|
13,313
|
-20.8
|
%
|
||||||||
|
Connected Devices
|
961
|
896
|
7.3
|
%
|
||||||||
|
Total Consumer Mobility Subscribers
|
51,864
|
54,674
|
-5.1
|
%
|
||||||||
|
Three Months Ended
|
||||||||||||
|
March 31,
|
Percent
|
|||||||||||
|
2017
|
2016
|
Change
|
||||||||||
|
Consumer Mobility Net Additions1
|
||||||||||||
|
Postpaid
|
(66
|
)
|
(4
|
)
|
-
|
%
|
||||||
|
Prepaid
|
282
|
500
|
-43.6
|
%
|
||||||||
|
Branded
|
216
|
496
|
-56.5
|
%
|
||||||||
|
Reseller
|
(588
|
)
|
(378
|
)
|
-55.6
|
%
|
||||||
|
Connected Devices
|
19
|
(26
|
)
|
-
|
%
|
|||||||
|
Total Consumer Mobility Net Additions
|
(353
|
)
|
92
|
-
|
%
|
|||||||
|
Total Churn1
|
2.42
|
%
|
2.11
|
%
|
31
|
BP
|
||||||
|
Postpaid Churn1
|
1.22
|
%
|
1.24
|
%
|
-2
|
BP
|
||||||
|
1 2017 excludes the impact of the 2G shutdown, which was reflected in beginning of period subscriber counts.
|
||||||||||||
|
INTERNATIONAL
|
|||||||||||||
|
The International segment provides entertainment services in Latin America and wireless services in Mexico. Video entertainment services are provided to primarily residential customers using satellite technology. We utilize our regional and national wireless networks in Mexico to provide consumer and business customers with wireless data and voice communication services. Our international subsidiaries conduct business in their local currency and operating results are converted to U.S. dollars using official exchange rates.
|
|||||||||||||
|
Segment Results
|
|||||||||||||
|
Dollars in millions
|
Three Months Ended
|
||||||||||||
|
Unaudited
|
March 31,
|
Percent
|
|||||||||||
|
2017
|
2016
|
Change
|
|||||||||||
|
Segment Operating Revenues
|
|||||||||||||
|
Video entertainment
|
$
|
1,341
|
|
$
|
1,130
|
18.7
|
%
|
||||||
|
Wireless service
|
475
|
455
|
4.4
|
%
|
|||||||||
|
Wireless equipment
|
113
|
82
|
37.8
|
%
|
|||||||||
|
Total Segment Operating Revenues
|
1,929
|
1,667
|
15.7
|
%
|
|||||||||
|
Segment Operating Expenses
|
|||||||||||||
|
Operations and support
|
1,759
|
1,588
|
10.8
|
%
|
|||||||||
|
Depreciation and amortization
|
290
|
277
|
4.7
|
%
|
|||||||||
|
Total Segment Operating Expenses
|
2,049
|
1,865
|
9.9
|
%
|
|||||||||
|
Segment Operating Income (Loss)
|
(120
|
)
|
(198
|
)
|
39.4
|
%
|
|||||||
|
Equity in Net Income (Loss) of Affiliates
|
20
|
14
|
42.9
|
%
|
|||||||||
|
Segment Contribution
|
$
|
(100
|
)
|
|
$
|
(184
|
)
|
45.7
|
%
|
||||
|
Segment Operating Income Margin
|
(6.2
|
)
|
%
|
(11.9
|
)
|
% |
570
|
BP
|
|||||
|
Supplementary Operating Data
|
|||||||||||||
|
Subscribers and connections in thousands
|
|||||||||||||
|
Unaudited
|
March 31,
|
Percent
|
|||||||||||
|
2017
|
2016
|
Change
|
|||||||||||
|
Mexican Wireless Subscribers
|
|||||||||||||
|
Postpaid
|
5,095
|
4,404
|
15.7
|
%
|
|||||||||
|
Prepaid
|
7,244
|
4,445
|
63.0
|
%
|
|||||||||
|
Branded
|
12,339
|
8,849
|
39.4
|
%
|
|||||||||
|
Reseller
|
267
|
364
|
-26.6
|
%
|
|||||||||
|
Total Mexican Wireless Subscribers
|
12,606
|
9,213
|
36.8
|
%
|
|||||||||
|
Latin America Satellite Subscribers
|
|||||||||||||
|
PanAmericana
|
8,090
|
7,094
|
14.0
|
%
|
|||||||||
|
SKY Brazil
|
5,588
|
5,342
|
4.6
|
%
|
|||||||||
|
Total Latin America Satellite Subscribers
|
13,678
|
12,436
|
10.0
|
%
|
|||||||||
|
Three Months Ended
|
|||||||||||||
|
March 31,
|
Percent
|
||||||||||||
|
2017
|
2016
|
Change
|
|||||||||||
|
Mexican Wireless Net Additions
|
|||||||||||||
|
Postpaid
|
130
|
116
|
12.1
|
%
|
|||||||||
|
Prepaid
|
517
|
450
|
14.9
|
%
|
|||||||||
|
Branded
|
647
|
566
|
14.3
|
%
|
|||||||||
|
Reseller
|
(14
|
)
|
(37
|
)
|
62.2
|
%
|
|||||||
|
Total Mexican Wireless Net Additions
|
633
|
529
|
19.7
|
%
|
|||||||||
|
Latin America Satellite Net Additions1
|
|||||||||||||
|
PanAmericana
|
52
|
28
|
85.7
|
%
|
|||||||||
|
SKY Brazil
|
39
|
(101
|
)
|
-
|
%
|
||||||||
|
Total Latin America Satellite Net Additions
|
91
|
(73
|
)
|
-
|
%
|
||||||||
|
1 In 2017 we updated the methodology used to account for prepaid video connections. The impact of this change is excluded.
|
|||||||||||||
|
SUPPLEMENTAL OPERATING INFORMATION - AT&T MOBILITY
|
||||||||||||
|
As a supplemental discussion of our operating results, for comparison purposes, we are providing a view of our combined domestic wireless operations (AT&T Mobility).
|
||||||||||||
|
Operating Results
|
||||||||||||
|
Dollars in millions
|
Three Months Ended
|
|||||||||||
|
Unaudited
|
March 31,
|
Percent
|
||||||||||
|
2017
|
2016
|
Change
|
||||||||||
|
Operating Revenues
|
||||||||||||
|
Service
|
$
|
14,538
|
$
|
14,798
|
-1.8
|
%
|
||||||
|
Equipment
|
2,629
|
3,156
|
-16.7
|
%
|
||||||||
|
Total Operating Revenues
|
17,167
|
17,954
|
-4.4
|
%
|
||||||||
|
Operating Expenses
|
||||||||||||
|
Operations and support
|
9,998
|
10,624
|
-5.9
|
%
|
||||||||
|
Depreciation and amortization
|
1,997
|
2,056
|
-2.9
|
%
|
||||||||
|
Total Operating Expenses
|
11,995
|
12,680
|
-5.4
|
%
|
||||||||
|
Operating Income
|
5,172
|
5,274
|
-1.9
|
%
|
||||||||
|
Operating Income Margin
|
30.1
|
%
|
29.4
|
%
|
70
|
BP
|
||||||
|
Supplementary Operating Data
|
||||||||||||
|
Subscribers and connections in thousands
|
||||||||||||
|
Unaudited
|
March 31,
|
Percent
|
||||||||||
|
2017
|
2016
|
Change
|
||||||||||
|
AT&T Mobility Subscribers
|
||||||||||||
|
Postpaid
|
77,349
|
77,138
|
0.3
|
%
|
||||||||
|
Prepaid
|
13,844
|
12,171
|
13.7
|
%
|
||||||||
|
Branded
|
91,193
|
89,309
|
2.1
|
%
|
||||||||
|
Reseller
|
10,625
|
13,378
|
-20.6
|
%
|
||||||||
|
Connected Devices
|
32,400
|
27,758
|
16.7
|
%
|
||||||||
|
Total AT&T Mobility Subscribers
|
134,218
|
130,445
|
2.9
|
%
|
||||||||
|
Domestic Licensed POPs (000,000)
|
325
|
322
|
0.9
|
%
|
||||||||
|
Three Months Ended
|
||||||||||||
|
March 31,
|
Percent
|
|||||||||||
|
2017
|
2016
|
Change
|
||||||||||
|
AT&T Mobility Net Additions
|
||||||||||||
|
Postpaid
|
(191
|
)
|
129
|
-
|
%
|
|||||||
|
Prepaid
|
282
|
500
|
-43.6
|
%
|
||||||||
|
Branded
|
91
|
629
|
-85.5
|
%
|
||||||||
|
Reseller
|
(582
|
)
|
(400
|
)
|
-45.5
|
%
|
||||||
|
Connected Devices
|
2,572
|
1,552
|
65.7
|
%
|
||||||||
|
Total AT&T Mobility Net Additions
|
2,081
|
1,781
|
16.8
|
%
|
||||||||
|
M&A Activity, Partitioned Customers and
Other Adjustments
|
(2,723
|
)
|
24
|
-
|
%
|
|||||||
|
Total Churn1
|
1.46
|
%
|
1.42
|
%
|
4
|
BP
|
||||||
|
Branded Churn1
|
1.71
|
%
|
1.63
|
%
|
8
|
BP
|
||||||
|
Postpaid Churn1
|
1.12
|
%
|
1.10
|
%
|
2
|
BP
|
||||||
|
Postpaid Phone Only Churn1
|
0.90
|
%
|
0.96
|
%
|
-6
|
BP
|
||||||
|
1 2017 excludes the impact of the 2G shutdown, which was reflected in beginning of period subscriber counts.
|
||||||||||||
|
SUPPLEMENTAL SEGMENT RECONCILIATION
|
||||||||||||||||||||||||||||
|
Three Months Ended
|
||||||||||||||||||||||||||||
|
Dollars in millions
|
||||||||||||||||||||||||||||
|
Unaudited
|
||||||||||||||||||||||||||||
|
March 31, 2017
|
||||||||||||||||||||||||||||
|
Revenues
|
Operations and Support Expenses
|
EBITDA
|
Depreciation and Amortization
|
Operating Income (Loss)
|
Equity in Net Income (Loss) of Affiliates
|
Segment Contribution
|
||||||||||||||||||||||
|
Business Solutions
|
$
|
16,848
|
$
|
10,176
|
$
|
6,672
|
$
|
2,312
|
$
|
4,360
|
$
|
-
|
$
|
4,360
|
||||||||||||||
|
Entertainment Group
|
12,623
|
9,601
|
3,022
|
1,419
|
1,603
|
(6
|
)
|
1,597
|
||||||||||||||||||||
|
Consumer Mobility
|
7,740
|
4,528
|
3,212
|
873
|
2,339
|
-
|
2,339
|
|||||||||||||||||||||
|
International
|
1,929
|
1,759
|
170
|
290
|
(120
|
)
|
20
|
(100
|
)
|
|||||||||||||||||||
|
Segment Total
|
39,140
|
26,064
|
13,076
|
4,894
|
8,182
|
$
|
14
|
$
|
8,196
|
|||||||||||||||||||
|
Corporate and Other
|
225
|
221
|
4
|
31
|
(27
|
)
|
||||||||||||||||||||||
|
Acquisition-related items
|
-
|
207
|
(207
|
)
|
1,202
|
(1,409
|
)
|
|||||||||||||||||||||
|
Certain Significant items
|
-
|
(118
|
)
|
118
|
-
|
118
|
||||||||||||||||||||||
|
AT&T Inc.
|
$
|
39,365
|
$
|
26,374
|
$
|
12,991
|
$
|
6,127
|
$
|
6,864
|
||||||||||||||||||
|
March 31, 2016
|
||||||||||||||||||||||||||||
|
Revenues
|
Operations and Support Expenses
|
EBITDA
|
Depreciation and Amortization
|
Operating Income (Loss)
|
Equity in Net Income (Loss) 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
|
||||||||||||||||||