AT&T INC. - FORM 8-K - EX-99.2 - AT&T INC. 4TH QUARTER 2017 SELECTED FINANCIAL STATEMENTS AND OPERATING DATA

Attached files

file	filename
8-K - AT&T INC. 4TH QUARTER 2017 EARNINGS RELEASE - AT&T INC.	q4earnings8k.htm
EX-99.3 - AT&T INC. 4TH QUARTER 2017 DISCUSSION AND RECONCILIATION OF NON-GAAP MEASURES. - AT&T INC.	ex99_3.htm
EX-99.1 - AT&T INC. 4TH QUARTER 2017 PRESS RELEASE - AT&T INC.	ex99_1.htm

AT&T Inc.
Financial Data


Consolidated Statements of Income
Dollars in millions except per share amounts	Three Months Ended						Twelve Months Ended
Unaudited	December 31,				Percent		December 31,				Percent
		2017		2016	Change			2017		2016	Change
Operating Revenues
Service	$	36,225	$	37,369	-3.1	%	$	145,597	$	148,884	-2.2	%
Equipment		5,451		4,472	21.9	%		14,949		14,902	0.3	%
Total Operating Revenues		41,676		41,841	-0.4	%		160,546		163,786	-2.0	%

Operating Expenses
Cost of services and sales
Equipment		6,532		5,667	15.3	%		18,709		18,757	-0.3	%
Broadcast, programming and operations		6,003		5,612	7.0	%		21,159		19,851	6.6	%
Other cost of services (exclusive of depreciation and amortization shown separately below)		9,797		9,840	-0.4	%		37,511		38,276	-2.0	%
Selling, general and administrative		10,000		9,984	0.2	%		34,917		36,347	-3.9	%
Asset abandonment and impairments		2,914		361	-	%		2,914		361	-	%
Depreciation and amortization		6,071		6,129	-0.9	%		24,387		25,847	-5.6	%
Total Operating Expenses		41,317		37,593	9.9	%		139,597		139,439	0.1	%
Operating Income		359		4,248	-91.5	%		20,949		24,347	-14.0	%
Interest Expense		(1,926)		(1,221)	57.7	%		(6,300)		(4,910)	28.3	%
Equity in Net Income (Loss) of Affiliates		20		41	-51.2	%		(128)		98	-	%
Other Income (Expense) - Net		264		123	-	%		618		277	-	%
Income (Loss) Before Income Taxes		(1,283)		3,191	-	%		15,139		19,812	-23.6	%
Income Tax (Benefit) Expense		(20,419)		676	-	%		(14,708)		6,479	-	%
Net Income		19,136		2,515	-	%		29,847		13,333	-	%
Less: Net Income Attributable to Noncontrolling Interest		(99)		(78)	26.9	%		(397)		(357)	11.2	%
Net Income Attributable to AT&T	$	19,037	$	2,437	-	%	$	29,450	$	12,976	-	%


Basic Earnings Per Share Attributable to AT&T	$	3.08	$	0.39	-	%	$	4.77	$	2.10	-	%
Weighted Average Common Shares Outstanding (000,000)		6,163		6,161	-	%		6,164		6,168	-0.1	%

Diluted Earnings Per Share Attributable to AT&T	$	3.08	$	0.39	-	%	$	4.76	$	2.10	-	%
Weighted Average Common Shares Outstanding with Dilution (000,000)		6,182		6,181	-	%		6,183		6,189	-0.1	%

AT&T Inc.
Financial Data


Consolidated Balance Sheets
Dollars in millions
Unaudited		Dec. 31,		Dec. 31,
		2017		2016
Assets
Current Assets
Cash and cash equivalents	$	50,498	$	5,788
Accounts receivable - net of allowances for doubtful accounts of $663 and $661		16,522		16,794
Prepaid expenses		1,369		1,555
Other current assets		10,757		14,232
Total current assets		79,146		38,369
Property, Plant and Equipment - Net		125,222		124,899
Goodwill		105,449		105,207
Licenses		96,136		94,176
Customer Lists and Relationships - Net		10,676		14,243
Other Intangible Assets - Net		7,464		8,441
Investments in Equity Affiliates		1,560		1,674
Other Assets		18,444		16,812
Total Assets	$	444,097	$	403,821

Liabilities and Stockholders' Equity
Current Liabilities
Debt maturing within one year	$	38,374	$	9,832
Accounts payable and accrued liabilities		34,470		31,138
Advanced billing and customer deposits		4,213		4,519
Accrued taxes		1,262		2,079
Dividends payable		3,070		3,008
Total current liabilities		81,389		50,576
Long-Term Debt		125,972		113,681
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes		43,207		60,128
Postemployment benefit obligation		31,775		33,578
Other noncurrent liabilities		19,747		21,748
Total deferred credits and other noncurrent liabilities		94,729		115,454
Stockholders' Equity
Common stock		6,495		6,495
Additional paid-in capital		89,563		89,604
Retained earnings		52,029		34,734
Treasury stock		(12,714)		(12,659)
Accumulated other comprehensive income		5,488		4,961
Noncontrolling interest		1,146		975
Total stockholders' equity		142,007		124,110
Total Liabilities and Stockholders' Equity	$	444,097	$	403,821

AT&T Inc.
Financial Data


Consolidated Statements of Cash Flows
Dollars in millions		Year Ended
Unaudited		December 31,
			2017		2016
Operating Activities
Net income		$	29,847	$	13,333
Adjustments to reconcile net income to net cash provided by operating activities:
	Depreciation and amortization		24,387		25,847
	Undistributed loss (earnings) from investments in equity affiliates		174		(37)
	Provision for uncollectible accounts		1,642		1,474
	Deferred income tax (benefit) expense		(15,940)		2,947
	Net (gain) loss from sale of investments, net of impairments		(282)		(169)
	Actuarial loss (gain) on pension and postretirement benefits		1,258		1,024
	Asset abandonments and impairments		2,914		361
Changes in operating assets and liabilities:
	Accounts receivable		(986)		(1,003)
	Other current assets		(777)		1,708
	Accounts payable and other accrued liabilities		816		118
	Equipment installment receivables and related sales		(263)		(576)
	Deferred fulfillment costs		(1,422)		(2,359)
Retirement benefit funding			(1,066)		(910)
Other - net			(1,151)		(2,414)
Total adjustments			9,304		26,011
Net Cash Provided by Operating Activities			39,151		39,344

Investing Activities
Capital expenditures:
	Purchase of property and equipment		(20,647)		(21,516)
	Interest during construction		(903)		(892)
Acquisitions, net of cash acquired			1,123		(2,959)
Dispositions			59		646
(Purchases) sales of securities, net			(4)		506
Other			1		-
Net Cash Used in Investing Activities			(20,371)		(24,215)

Financing Activities
Issuance of long-term debt			48,793		10,140
Repayment of long-term debt			(12,339)		(10,823)
Purchase of treasury stock			(463)		(512)
Issuance of treasury stock			33		146
Dividends paid			(12,038)		(11,797)
Other			1,944		(1,616)
Net Cash Provided by (Used in) Financing Activities			25,930		(14,462)
Net increase in cash and cash equivalents			44,710		667
Cash and cash equivalents beginning of year			5,788		5,121
Cash and Cash Equivalents End of Year		$	50,498	$	5,788

AT&T Inc.
Consolidated Supplementary Data


Supplementary Financial Data
Dollars in millions except per share amounts		Three Months Ended						Twelve Months Ended
Unaudited		December 31,				Percent		December 31,					Percent
			2017		2016	Change			2017		2016		Change
Capital expenditures
	Purchase of property and equipment	$	4,891	$	6,233	-21.5	%	$	20,647	$	21,516		-4.0	%
	Interest during construction	$	185	$	223	-17.0	%	$	903	$	892		1.2	%

Dividends Declared per Share		$	0.50	$	0.49	2.0	%	$	1.97	$	1.93		2.1	%

End of Period Common Shares Outstanding (000,000)									6,139		6,139		-	%
Debt Ratio									53.6	%	49.9	%	370	BP
Total Employees									254,000		268,540		-5.4	%


Supplementary Operating Data
Subscribers and connections in thousands
Unaudited								December 31,					Percent
									2017		2016		Change
Wireless Subscribers
	Domestic								141,567		134,859		5.0	%
	Mexico								15,099		11,973		26.1	%
Total Wireless Subscribers									156,666		146,832		6.7	%

Total Branded Wireless Subscribers									108,105		103,011		4.9	%

Video Connections
	Domestic								25,270		25,560		-1.1	%
	PanAmericana								8,270		7,206		14.8	%
	Brazil								5,359		5,249		2.1	%
Total Video Connections									38,899		38,015		2.3	%

Broadband Connections
	IP								14,487		13,864		4.5	%
	DSL								1,232		1,741		-29.2	%
Total Broadband Connections									15,719		15,605		0.7	%

Voice Connections
	Network Access Lines								11,753		13,986		-16.0	%
	U-verse VoIP Connections								5,682		5,787		-1.8	%
Total Retail Consumer Voice Connections									17,435		19,773		-11.8	%


		Three Months Ended						Twelve Months Ended
		December 31,				Percent		December 31,					Percent
			2017		2016	Change			2017		2016		Change
Wireless Net Additions
	Domestic		2,741		1,522	80.1	%		9,427		6,196		52.1	%
	Mexico		1,320		1,275	3.5	%		3,126		3,289		-5.0	%
Total Wireless Net Additions			4,061		2,797	45.2	%		12,553		9,485		32.3	%

Total Branded Wireless Net Additions			2,029		2,221	-8.6	%		4,811		6,102		-21.2	%

Video Net Additions
	Domestic		160		239	-33.1	%		(291)		136		-	%
	PanAmericana		69		67	3.0	%		232		140		65.7	%
	Brazil		70		(88)	-	%		(190)		(195)		2.6	%
Total Video Net Additions			299		218	37.2	%		(249)		81		-	%

Broadband Net Additions
	IP		103		149	-30.9	%		623		596		4.5	%
	DSL		(99)		(162)	38.9	%		(509)		(769)		33.8	%
Total Broadband Net Additions			4		(13)	-	%		114		(173)		-	%

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							Twelve Months Ended
Unaudited		December 31,					Percent		December 31,					Percent
			2017		2016		Change			2017		2016		Change
Segment Operating Revenues
	Wireless service	$	7,933	$	7,982		-0.6	%	$	31,902	$	31,850		0.2	%
	Fixed strategic services		3,138		2,962		5.9	%		12,227		11,431		7.0	%
	Legacy voice and data services		3,359		3,793		-11.4	%		13,931		16,370		-14.9	%
	Other service and equipment		938		947		-1.0	%		3,451		3,566		-3.2	%
	Wireless equipment		3,022		2,349		28.7	%		7,895		7,771		1.6	%
Total Segment Operating Revenues			18,390		18,033		2.0	%		69,406		70,988		-2.2	%

Segment Operating Expenses
Operations and support expenses			12,207		11,746		3.9	%		42,929		44,330		-3.2	%
Depreciation and amortization			2,354		2,264		4.0	%		9,326		9,832		-5.1	%
Total Segment Operating Expenses			14,561		14,010		3.9	%		52,255		54,162		-3.5	%
Segment Operating Income			3,829		4,023		-4.8	%		17,151		16,826		1.9	%
Equity in Net Income (Loss) of Affiliates			(1)		-		-	%		(1)		-		-	%
Segment Contribution		$	3,828	$	4,023		-4.8	%	$	17,150	$	16,826		1.9	%

Segment Operating Income Margin			20.8	%	22.3	%				24.7	%	23.7	%


Supplementary Operating Data
Subscribers and connections in thousands
Unaudited									December 31,					Percent
										2017		2016		Change
Business Solutions Wireless Subscribers
	Postpaid/Branded									51,811		50,688		2.2	%
	Reseller									87		65		33.8	%
	Connected Devices									38,534		30,649		25.7	%
Total Business Solutions Wireless Subscribers										90,432		81,402		11.1	%

Business Solutions IP Broadband Connections										1,025		977		4.9	%


		Three Months Ended							Twelve Months Ended
		December 31,					Percent		December 31,					Percent
			2017		2016		Change			2017		2016		Change
Business Solutions Wireless Net Additions
	Postpaid/Branded		221		250		-11.6	%		147		759		-80.6	%
	Reseller		4		1		-	%		7		(33)		-	%
	Connected Devices		2,624		1,263		-	%		9,639		5,330		80.8	%
Total Business Solutions Wireless Net Additions			2,849		1,514		88.2	%		9,793		6,056		61.7	%

Business Solutions Wireless Postpaid Churn			1.08	%	1.11	%	-3	BP		1.04	%	1.00	%	4	BP

Business Solutions IP Broadband Net Additions			7		14		-50.0	%		48		66		-27.3	%

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							Twelve Months Ended
Unaudited		December 31,					Percent		December 31,					Percent
			2017		2016		Change			2017		2016		Change
Segment Operating Revenues
	Video entertainment	$	9,355	$	9,567		-2.2	%	$	36,728	$	36,460		0.7	%
	High-speed internet		1,890		1,910		-1.0	%		7,674		7,472		2.7	%
	Legacy voice and data services		910		1,104		-17.6	%		3,920		4,829		-18.8	%
	Other service and equipment		590		625		-5.6	%		2,376		2,534		-6.2	%
Total Segment Operating Revenues			12,745		13,206		-3.5	%		50,698		51,295		-1.2	%

Segment Operating Expenses
Operations and support expenses			10,308		10,463		-1.5	%		39,420		39,338		0.2	%
Depreciation and amortization			1,367		1,381		-1.0	%		5,623		5,862		-4.1	%
Total Segment Operating Expenses			11,675		11,844		-1.4	%		45,043		45,200		-0.3	%
Segment Operating Income			1,070		1,362		-21.4	%		5,655		6,095		-7.2	%
Equity in Net Income (Loss) of Affiliates			(7)		8		-	%		(30)		9		-	%
Segment Contribution		$	1,063	$	1,370		-22.4	%	$	5,625	$	6,104		-7.8	%

Segment Operating Income Margin			8.4	%	10.3	%				11.2	%	11.9	%


Supplementary Operating Data
Subscribers and connections in thousands
Unaudited									December 31,					Percent
										2017		2016		Change
Video Connections
	Satellite									20,458		21,012		-2.6	%
	U-verse									3,631		4,253		-14.6	%
	DIRECTV NOW									1,155		267		-	%
Total Video Connections										25,244		25,532		-1.1	%

Broadband Connections
	IP									13,462		12,888		4.5	%
	DSL									888		1,291		-31.2	%
Total Broadband Connections										14,350		14,179		1.2	%

Voice Connections
	Retail Consumer Switched Access Lines									4,774		5,853		-18.4	%
	U-verse Consumer VoIP Connections									5,222		5,425		-3.7	%
Total Retail Consumer Voice Connections										9,996		11,278		-11.4	%


		Three Months Ended							Twelve Months Ended
		December 31,					Percent		December 31,					Percent
			2017		2016		Change			2017		2016		Change
Video Net Additions
	Satellite		(147)		235		-	%		(554)		1,228		-	%
	U-verse		(60)		(262)		77.1	%		(622)		(1,361)		54.3	%
	DIRECTV NOW		368		267		37.8	%		888		267		-	%
Total Video Net Additions			161		240		-32.9	%		(288)		134		-	%

Broadband Net Additions
	IP		95		136		-30.1	%		574		532		7.9	%
	DSL		(76)		(133)		42.9	%		(403)		(639)		36.9	%
Total Broadband Net Additions			19		3		-	%		171		(107)		-	%

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							Twelve Months Ended
Unaudited		December 31,					Percent		December 31,					Percent
			2017		2016		Change			2017		2016		Change
Segment Operating Revenues
	Service	$	6,409	$	6,731		-4.8	%	$	26,053	$	27,536		-5.4	%
	Equipment		1,864		1,688		10.4	%		5,499		5,664		-2.9	%
Total Segment Operating Revenues			8,273		8,419		-1.7	%		31,552		33,200		-5.0	%

Segment Operating Expenses
Operations and support expenses			5,367		5,316		1.0	%		18,966		19,659		-3.5	%
Depreciation and amortization			886		918		-3.5	%		3,507		3,716		-5.6	%
Total Segment Operating Expenses			6,253		6,234		0.3	%		22,473		23,375		-3.9	%
Segment Operating Income			2,020		2,185		-7.6	%		9,079		9,825		-7.6	%
Equity in Net Income of Affiliates			-		-		-	%		-		-		-	%
Segment Contribution		$	2,020	$	2,185		-7.6	%	$	9,079	$	9,825		-7.6	%

Segment Operating Income Margin			24.4	%	26.0	%				28.8	%	29.6	%


Supplementary Operating Data
Subscribers and connections in thousands
Unaudited									December 31,					Percent
										2017		2016		Change
Consumer Mobility Subscribers
	Postpaid									26,064		27,095		-3.8	%
	Prepaid									15,335		13,536		13.3	%
Branded										41,399		40,631		1.9	%
Reseller										9,279		11,884		-21.9	%
Connected Devices										457		942		-51.5	%
Total Consumer Mobility Subscribers										51,135		53,457		-4.3	%


		Three Months Ended							Twelve Months Ended
		December 31,					Percent		December 31,					Percent
			2017		2016		Change			2017		2016		Change
Consumer Mobility Net Additions
	Postpaid		320		270		18.5	%		447		359		24.5	%
	Prepaid¹		140		406		-65.5	%		1,013		1,575		-35.7	%
Branded			460		676		-32.0	%		1,460		1,934		-24.5	%
Reseller			(533)		(673)		20.8	%		(1,878)		(1,813)		-3.6	%
Connected Devices¹			(35)		5		-	%		52		19		-	%
Total Consumer Mobility Net Additions			(108)		8		-	%		(366)		140		-	%

Total Churn			2.48	%	2.43	%	5	BP		2.36	%	2.15	%	21	BP
Postpaid Churn			1.18	%	1.25	%	-7	BP		1.17	%	1.19	%	-2	BP
¹Effective July 1, 2017 we prospectively reclassified prepaid internet of things (IoT) connections from connected devices to prepaid.

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							Twelve Months Ended
Unaudited		December 31,					Percent		December 31,					Percent
			2017		2016		Change			2017		2016		Change
Segment Operating Revenues
	Video entertainment	$	1,391	$	1,261		10.3	%	$	5,456	$	4,910		11.1	%
	Wireless service		501		477		5.0	%		2,047		1,905		7.5	%
	Wireless equipment		323		171		88.9	%		766		468		63.7	%
Total Segment Operating Revenues			2,215		1,909		16.0	%		8,269		7,283		13.5	%

Segment Operating Expenses
Operations and support expenses			1,936		1,879		3.0	%		7,404		6,830		8.4	%
Depreciation and amortization			313		298		5.0	%		1,218		1,166		4.5	%
Total Segment Operating Expenses			2,249		2,177		3.3	%		8,622		7,996		7.8	%
Segment Operating Income (Loss)			(34)		(268)		87.3	%		(353)		(713)		50.5	%
Equity in Net Income of Affiliates			25		28		-10.7	%		87		52		67.3	%
Segment Contribution		$	(9)	$	(240)		96.3	%	$	(266)	$	(661)		59.8	%

Segment Operating Income Margin			(1.5)	%	(14.0)	%				(4.3)	%	(9.8)	%


Supplementary Operating Data
Subscribers and connections in thousands
Unaudited									December 31,					Percent
										2017		2016		Change
Mexican Wireless Subscribers
	Postpaid									5,498		4,965		10.7	%
	Prepaid									9,397		6,727		39.7	%
Branded										14,895		11,692		27.4	%
Reseller										204		281		-27.4	%
Total Mexican Wireless Subscribers										15,099		11,973		26.1	%

Latin America Satellite Subscribers
	PanAmericana									8,270		7,206		14.8	%
	SKY Brazil									5,359		5,249		2.1	%
Total Latin America Satellite Subscribers										13,629		12,455		9.4	%


		Three Months Ended							Twelve Months Ended
		December 31,					Percent		December 31,					Percent
			2017		2016		Change			2017		2016		Change
Mexican Wireless Net Additions
	Postpaid		182		233		-21.9	%		533		677		-21.3	%
	Prepaid		1,166		1,062		9.8	%		2,670		2,732		-2.3	%
Branded			1,348		1,295		4.1	%		3,203		3,409		-6.0	%
Reseller			(28)		(20)		-40.0	%		(77)		(120)		35.8	%
Total Mexican Wireless Net Additions			1,320		1,275		3.5	%		3,126		3,289		-5.0	%

Latin America Satellite Net Additions
	PanAmericana		69		67		3.0	%		232		140		65.7	%
	SKY Brazil		70		(88)		-	%		(190)		(195)		2.6	%
Total Latin America Satellite Net Additions			139		(21)		-	%		42		(55)		-	%

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							Twelve Months Ended
Unaudited		December 31,					Percent		December 31,					Percent
			2017		2016		Change			2017		2016		Change
Operating Revenues
	Service	$	14,342	$	14,713		-2.5	%	$	57,955	$	59,386		-2.4	%
	Equipment		4,886		4,037		21.0	%		13,394		13,435		-0.3	%
Total Operating Revenues			19,228		18,750		2.5	%		71,349		72,821		-2.0	%

Operating Expenses
Operations and support expenses			12,947		12,064		7.3	%		43,255		43,886		-1.4	%
Depreciation and amortization			2,028		2,048		-1.0	%		8,027		8,292		-3.2	%
Total Operating Expenses			14,975		14,112		6.1	%		51,282		52,178		-1.7	%
Operating Income		$	4,253	$	4,638		-8.3	%	$	20,067	$	20,643		-2.8	%

Operating Income Margin			22.1	%	24.7	%				28.1	%	28.3	%


Supplementary Operating Data
Subscribers and connections in thousands
Unaudited									December 31,					Percent
										2017		2016		Change
AT&T Mobility Subscribers
	Postpaid									77,875		77,783		0.1	%
	Prepaid									15,335		13,536		13.3	%
Branded										93,210		91,319		2.1	%
Reseller										9,366		11,949		-21.6	%
Connected Devices										38,991		31,591		23.4	%
Total AT&T Mobility Subscribers										141,567		134,859		5.0	%

Domestic Licensed POPs (000,000)										326		322		1.2	%


		Three Months Ended							Twelve Months Ended
		December 31,					Percent		December 31,					Percent
			2017		2016		Change			2017		2016		Change
AT&T Mobility Net Additions
	Postpaid		541		520		4.0	%		594		1,118		-46.9	%
	Prepaid¹		140		406		-65.5	%		1,013		1,575		-35.7	%
Branded			681		926		-26.5	%		1,607		2,693		-40.3	%
Reseller			(529)		(672)		21.3	%		(1,871)		(1,846)		-1.4	%
Connected Devices¹			2,589		1,268		-	%		9,691		5,349		81.2	%
Total AT&T Mobility Net Additions			2,741		1,522		80.1	%		9,427		6,196		52.1	%
M&A Activity, Partitioned Customers and Other Adjustments			-		(1)		-	%		(2,719)		23		-	%

Total Churn			1.38	%	1.71	%	-33	BP		1.36	%	1.48	%	-12	BP
Postpaid Churn			1.12	%	1.16	%	-4	BP		1.08	%	1.07	%	1	BP
¹Effective July 1, 2017 we prospectively reclassified prepaid internet of things (IoT) connections from connected devices to prepaid.

SUPPLEMENTAL SEGMENT RECONCILIATION


Three Months Ended
Dollars in millions
Unaudited

December 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	$	18,390	$	12,207	$	6,183	$	2,354	$	3,829	$	(1)	$	3,828
Entertainment Group		12,745		10,308		2,437		1,367		1,070		(7)		1,063
Consumer Mobility		8,273		5,367		2,906		886		2,020		-		2,020
International		2,215		1,936		279		313		(34)		25		(9)
Segment Total		41,623		29,818		11,805		4,920		6,885	$	17	$	6,902
Corporate and Other		207		157		50		18		32
Acquisition-related items		-		176		(176)		1,100		(1,276)
Certain Significant items		(154)		5,095		(5,249)		33		(5,282)
AT&T Inc.	$	41,676	$	35,246	$	6,430	$	6,071	$	359


December 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	$	18,033	$	11,746	$	6,287	$	2,264	$	4,023	$	-	$	4,023
Entertainment Group		13,206		10,463		2,743		1,381		1,362		8		1,370
Consumer Mobility		8,419		5,316		3,103		918		2,185		-		2,185
International		1,909		1,879		30		298		(268)		28		(240)
Segment Total		41,567		29,404		12,163		4,861		7,302	$	36	$	7,338
Corporate and Other		284		233		51		11		40
Acquisition-related items		-		385		(385)		1,228		(1,613)
Certain Significant items		(10)		1,442		(1,452)		29		(1,481)
AT&T Inc.	$	41,841	$	31,464	$	10,377	$	6,129	$	4,248



Twelve Months Ended
Dollars in millions
Unaudited

December 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	$	69,406	$	42,929	$	26,477	$	9,326	$	17,151	$	(1)	$	17,150
Entertainment Group		50,698		39,420		11,278		5,623		5,655		(30)		5,625
Consumer Mobility		31,552		18,966		12,586		3,507		9,079		-		9,079
International		8,269		7,404		865		1,218		(353)		87		(266)
Segment Total		159,925		108,719		51,206		19,674		31,532	$	56	$	31,588
Corporate and Other		864		554		310		72		238
Acquisition-related items		-		798		(798)		4,608		(5,406)
Certain Significant items		(243)		5,139		(5,382)		33		(5,415)
AT&T Inc.	$	160,546	$	115,210	$	45,336	$	24,387	$	20,949


December 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	$	70,988	$	44,330	$	26,658	$	9,832	$	16,826	$	-	$	16,826
Entertainment Group		51,295		39,338		11,957		5,862		6,095		9		6,104
Consumer Mobility		33,200		19,659		13,541		3,716		9,825		-		9,825
International		7,283		6,830		453		1,166		(713)		52		(661)
Segment Total		162,766		110,157		52,609		20,576		32,033	$	61	$	32,094
Corporate and Other		1,043		1,173		(130)		65		(195)
Acquisition-related items		-		1,203		(1,203)		5,177		(6,380)
Certain Significant items		(23)		1,059		(1,082)		29		(1,111)
AT&T Inc.	$	163,786	$	113,592	$	50,194	$	25,847	$	24,347

AT&T INC. - FORM 8-K - EX-99.2 - AT&T INC. 4TH QUARTER 2017 SELECTED FINANCIAL STATEMENTS AND OPERATING DATA - January 31, 2018

Attached files

AT&T INC. Reports