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RNS Number : 2747V
AT & T Inc.
29 October 2010
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
+--------+
| |
+--------+
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of report (Date of earliest event reported) October 21, 2010
AT&T INC.
(Exact Name of Registrant as Specified in Charter)
+----------------+-------------+----------------+
| Delaware | 1-8610 | 43-1301883 |
+----------------+-------------+----------------+
| (State |(Commission | (IRS |
| or | File | Employer |
| Other | Number) |Identification |
| Jurisdiction | | No.) |
| of | | |
|Incorporation) | | |
+----------------+-------------+----------------+
+-----------+--------+
| 208 S. | 75202 |
| Akard | |
| St., | |
| Dallas, | |
| Texas | |
+-----------+--------+
| | (Zip |
| (Address | Code) |
| of | |
|Principal | |
|Executive | |
| Offices) | |
+-----------+--------+
Registrant's telephone number, including area code (210) 821-4105
+--------+--------+
| | |
+--------+--------+
|(Former Name or |
|Former Address, |
| if Changed |
| Since Last |
| Report) |
+--------+--------+
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
+-----------+-----------------------------------------------------------------------------------------+
| o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
+-----------+-----------------------------------------------------------------------------------------+
+-----------+------------------------------------------------------------------------------------------+
| o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
+-----------+------------------------------------------------------------------------------------------+
+-----------+----------------------------------------------------------------------------------------------------------+
| o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240-14d-2(b)) |
+-----------+----------------------------------------------------------------------------------------------------------+
+-----------+----------------------------------------------------------------------------------------------------------+
| o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
+-----------+----------------------------------------------------------------------------------------------------------+
Item 2.02 Results of Operations and Financial Condition.
The registrant announced on October 21, 2010, its results of operations for the
third quarter of 2010. The text of the press release and accompanying financial
information are attached as exhibits and incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
The following exhibits are furnished as part of this report:
(d) Exhibits
+--------+--------+-----------+
| 99.1 | | Press |
| | | release |
| | | dated |
| | | October |
| | | 21, |
| | | 2010 |
| | | reporting |
| | | financial |
| | | results |
| | | for the |
| | | third |
| | | quarter |
| | | ended |
| | | September |
| | | 30, 2010. |
+--------+--------+-----------+
+--------+--------+------------+
| 99.2 | | AT&T |
| | | Inc. |
| | | selected |
| | | financial |
| | | statements |
| | | and |
| | | operating |
| | | data. |
+--------+--------+------------+
| | | |
+--------+--------+------------+
| 99.3 | | Discussion |
| | | of OIBDA, |
| | | Free Cash |
| | | Flow, Free |
| | | Cash Flow |
| | | Yield, and |
| | | Free Cash |
| | | Flow after |
| | | Dividends |
+--------+--------+------------+
| | | |
+--------+--------+------------+
Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
+----------+------------------------------------------------------------------------------------+
| | AT&T |
| | INC. |
+----------+------------------------------------------------------------------------------------+
| | |
+----------+------------------------------------------------------------------------------------+
| | |
+----------+------------------------------------------------------------------------------------+
| | |
+----------+------------------------------------------------------------------------------------+
| Date: | By: |
| October | /s/ |
| 21, 2010 | John |
| | J. |
| | Stephens |
| | |
| | John J. |
| | Stephens |
| | Senior |
| | Vice |
| | President |
| | and |
| | Controller |
| | |
| | |
+----------+------------------------------------------------------------------------------------+
For more information, contact:
McCall Butler
917-209-5792
mbutler@attnews.us
RECORD WIRELESS SALES, STRONG REVENUE AND EARNINGS GROWTH HIGHLIGHT AT&T'S
THIRD-QUARTER RESULTS
+--------+------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| * | $2.08 diluted EPS compared to $0.54 diluted EPS in the third quarter of 2009; EPS of $0.55, excluding $1.53 in one-time gains from a previously disclosed tax settlement and the sale of Sterling Commerce |
+--------+------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
+--------+---------------------------------------------------------------------------------------------------------------------------------------------------------+
| * | Consolidated revenues from continuing operations of $31.6 billion in the third quarter, up $847 million, or 2.8 percent, versus the year-earlier period |
+--------+---------------------------------------------------------------------------------------------------------------------------------------------------------+
+--------+-----------------------------------------------------------------------------------------------------+
| * | 11.4 percent growth in wireless revenues, with a 10.5 percent increase in wireless service revenues |
+--------+-----------------------------------------------------------------------------------------------------+
+--------+------------------------------------------------------------------------------------+
| * | Record wireless volumes, with more than 8 million postpaid integrated device sales |
+--------+------------------------------------------------------------------------------------+
+--------+-----------------------------------------------------------------------------------------------------------------------------------------------------------------+
| * | 2.6 million increase in total wireless subscribers - the highest third-quarter net gain in the company's history - to reach 92.8 million subscribers in service |
+--------+-----------------------------------------------------------------------------------------------------------------------------------------------------------------+
+--------+-------------------------------------------------------------------------------------------------------------------------------------------------------------+
| * | Postpaid subscriber ARPU (average monthly revenues per subscriber) up 2.0 percent to $62.84, the seventh consecutive quarter with a year-over-year increase |
+--------+-------------------------------------------------------------------------------------------------------------------------------------------------------------+
+--------+------------------------------------------------------------------------+
| * | 1.32 percent total wireless churn, best-ever third-quarter |
+--------+------------------------------------------------------------------------+
+--------+------------------------------------------------------------------------------------------------+
| * | 30.5 percent growth in wireless data revenues, up $1.1 billion versus the year-earlier quarter |
+--------+------------------------------------------------------------------------------------------------+
+--------+----------------------------------------------------------------------------------+
| * | First year-over-year growth in wireline consumer revenues in more than two years |
+--------+----------------------------------------------------------------------------------+
+--------+-------------------------------------------------------------------------------------+
| * | 30.0 percent growth in consumer IP data revenues, driven by AT&T U-verse expansion |
+--------+-------------------------------------------------------------------------------------+
+--------+---------------------------------------------------------------------------------------------------------------------------------------+
| * | 236,000 net gain in AT&T U-verse TV subscribers to reach 2.7 million in service, with continued high broadband and voice attach rates |
+--------+---------------------------------------------------------------------------------------------------------------------------------------+
+--------+------------------------------------------------------------------------+
| * | 148,000 net gain in wireline broadband connections |
+--------+------------------------------------------------------------------------+
+--------+------------------------------------------------------------------------------------------------------------------------------------------------------+
| * | 15.4 percent growth in revenues from strategic business services such as Ethernet, Virtual Private Networks (VPNs), hosting and application services |
+--------+------------------------------------------------------------------------------------------------------------------------------------------------------+
Note: AT&T's third-quarter earnings conference call will be broadcast live via
the Internet at 10 a.m. ET on Thursday, Oct. 21, 2010, at
www.att.com/investor.relations.
DALLAS, Oct. 21, 2010 - AT&T Inc. (NYSE:T) today reported third-quarter results
highlighted by growth in consolidated revenues, strong sales of integrated
devices, gains in IP-based and strategic business services, and disciplined
execution on cost initiatives.
"This was a terrific mobile broadband quarter," said Randall Stephenson, AT&T
chairman and chief executive officer. "A record number of customers signed new
two-year contracts and integrated device sales outpaced our previous best by a
wide margin. Wireless revenues continue to grow, churn is reaching record low
levels, and postpaid ARPU increased for the seventh straight quarter.
1
"These trends add to our momentum and confidence," Stephenson said. "Mobile
broadband is the industry's most powerful growth driver, and demand is in its
early stages in both the consumer and business segments. AT&T is well positioned
for the opportunities ahead."
Third-Quarter Financial Results
(On August 27, 2010, AT&T completed its sale of Sterling Commerce to IBM for
approximately $1.4 billion in cash. Third-quarter comparisons are based on
results from continuing operations, which exclude results from Sterling Commerce
in all periods.)
For the quarter ended September 30, 2010, AT&T's consolidated revenues totaled
$31.6 billion, up $847 million, or 2.8 percent, versus the year-earlier quarter,
marking the company's third consecutive quarter with a year-over-year revenue
increase. Versus the second quarter of this year, consolidated revenues were up
$773 million, or 2.5 percent.
Compared with results for the third quarter of 2009, operating expenses were
$26.1 billion versus $25.4 billion; operating income was $5.5 billion, up from
$5.4 billion; and AT&T's operating income margin was stable at 17.3 percent,
compared to 17.5 percent.
Third-quarter 2010 net income attributable to AT&T totaled $12.3 billion, or
$2.08 per diluted share, including $1.53 in one-time gains from a previously
disclosed tax settlement and the sale of Sterling Commerce. These results
compare with reported net income attributable to AT&T of $3.2 billion, or $0.54
per diluted share, in the third quarter of 2009. Excluding one-time gains,
earnings grew 3.8 percent to $0.55 per diluted share, compared to $0.53 per
diluted share in the year-earlier quarter.
Third-quarter 2010 cash from operating activities totaled $9.5 billion; capital
expenditures totaled $5.5 billion, including a nearly 64 percent increase in
wireless-related capital investment versus the year-earlier quarter, as AT&T
aggressively deploys next-generation wireless broadband networks. Free cash flow
- cash from operating activities minus capital expenditures - totaled $4.0
billion.
Compared with results for the first three quarters of 2009, year to date through
the third quarter, cash from operating activities totaled $25.4 billion versus
$25.4 billion; capital expenditures totaled $13.7 billion versus $11.6 billion;
and free cash flow totaled $11.6 billion versus $13.9 billion.
Wireless Operational Highlights
Led by a record quarter of integrated device sales, AT&T delivered solid
third-quarter growth in its wireless business, including double-digit wireless
revenue gains. Highlights included:
Best-Ever Third-Quarter Subscriber Gain. AT&T posted a net gain in total
wireless subscribers of 2.6 million, to reach 92.8 million in service.
Third-quarter net add growth reflects rapid adoption of smartphones, increases
in prepaid subscribers and growth in a host of connected devices such as
eReaders, security systems, fleet management and global positioning systems in
both the business and consumer markets. Retail net adds for the quarter include
postpaid net adds of 745,000 and prepaid net adds of 321,000. Connected device
net adds were 1.2 million, and reseller net adds were 406,000.
Total Churn at Record Third-Quarter Level.Postpaid churn was 1.14 percent -
matching the third-quarter record set in 2009 - and total churn reached a
best-ever third-quarter level of 1.32 percent versus 1.42 percent in the third
quarter of 2009.
Record Integrated Device Sales. More than 8 million postpaid integrated devices
were activated in the third quarter, the most quarterly activations ever. More
than 80 percent of postpaid sales were integrated devices. (Integrated devices
are handsets with QWERTY or virtual keyboards in addition to voice functionality
and are a key driver of wireless data usage.)
2
At the end of the quarter, 57.3 percent of AT&T's 67.7 million postpaid
subscribers had integrated devices, up from 42.0 percent a year earlier. The
average ARPU for integrated devices on AT&T's network is 1.7 times that of the
company's non-integrated device base. More than 80 percent of integrated device
subscribers are on FamilyTalk and/or business discount plans. Churn levels for
these plans continue to run below the company's postpaid base.
AT&T's third-quarter integrated device growth included 5.2 million iPhone
activations, the most iPhone activations ever in a quarter. This is 62 percent
more than the previous quarterly record of 3.2 million activated in the second
quarter of 2010. Approximately 24 percent of those activations were for
customers who were new to AT&T.
Data Revenue Growth of 30.5 Percent.Wireless data revenues - from messaging,
Internet access, access to applications and related services - increased $1.1
billion, or 30.5 percent, from the year-earlier quarter to $4.8 billion. AT&T
wireless subscribers on data plans increased by 21.5 percent over the past year.
Versus the year-earlier quarter, total text messages carried on the AT&T network
increased about 34 percent to 161 billion and multimedia messages more than
doubled to 2.8 billion.
Solid Postpaid ARPU Growth. Driven by strong data growth, postpaid subscriber
ARPU increased 2.0 percent versus the year-earlier quarter to $62.84. This
marked the seventh consecutive quarter AT&T has posted a year-over-year increase
in postpaid ARPU. Postpaid data ARPU reached $22.02, up 19.5 percent versus the
year-earlier quarter, and total postpaid subscriber revenues continued recent
trends, with double-digit growth, reflecting increases in both voice and data.
Double-Digit Wireless Revenue Growth.Wireless service revenues increased 10.5
percent to $13.7 billion in the third quarter. Total wireless revenues, which
include equipment sales, were up 11.4 percent year over year to $15.2 billion
and increased 6.6 percent from the second quarter of 2010.
Wireless Margins. Wireless margins were impacted by increased operating costs
associated with the company's record quarter for integrated device activations.
Absent the costs associated with these additional activations, service margins
would have been similar to the prior quarter of this year. Operational execution
and further growth in the company's high-quality integrated device subscribers
helped partially offset these costs. AT&T's wireless operating income margin was
23.1 percent versus 25.6 percent in the year-earlier quarter, and AT&T's
wireless OIBDA service margin was 37.6 percent, compared to 40.3 percent in the
third quarter of 2009 (OIBDA service margin is operating income before
depreciation and amortization, divided by total service revenues). Third-quarter
wireless operating expenses totaled $11.7 billion, up 15.2 percent versus the
year-earlier quarter, and wireless operating income was $3.5 billion, up 0.2
percent year over year.
Wireline Operational Highlights
AT&T's third-quarter wireline results were highlighted by improving trends in
revenues including the first year-over-year growth in consumer revenues in more
than two years, further expansion in AT&T U-verse services, sustained growth in
revenues from strategic business services and solid cost management. Highlights
included:
Growth in Wireline Consumer Revenues. Driven by strength in IP data services, in
the third quarter, total revenue from residential customers totaled $5.3
billion, up 0.2 percent from the third quarter of 2009, the first year-over-year
growth in more than two years.
3
AT&T's Award-Winning U-verse Services Drive Consumer Growth. AT&T U-verse TV
subscribers increased by 236,000 in the quarter to reach 2.7 million. In the
third quarter, the AT&T U-verse High Speed Internet attach rate continued to run
above 90 percent, and nearly 60 percent of subscribers took AT&T U-verse Voice.
More than three-fourths of AT&T U-verse TV subscribers have a triple- or
quad-play option from AT&T. ARPU for U-verse triple-play customers was about
$160.
AT&T's U-verse deployment now reaches more than 26 million living units.
Companywide penetration of eligible living units is 14.1 percent, and across
areas marketed to for 30 months or more, overall penetration is more than 22
percent. AT&T's total video subscribers, which combine the company's U-verse and
bundled satellite customers, reached 4.7 million at the end of the quarter,
representing 18.8 percent of households served.
Rebound in Broadband Subscriber Growth.Driven by strength in AT&T U-verse High
Speed Internet service, AT&T posted a 148,000 net gain in wireline broadband
connections.
U-verse Revenues Exceed $1 Billion.Increased AT&T U-verse penetration drove 30.0
percent year-over-year growth in consumer IP revenues (broadband, U-verse TV and
U-verse Voice). U-verse continues to drive a transformation in AT&T's consumer
business, reflected by the fact that consumer IP revenues now represent 42.6
percent of AT&T's wireline consumer revenues, up from 32.8 percent in the
year-earlier quarter. In the third quarter, AT&T U-verse revenues were $1.1
billion, 84.5 percent higher than in the third quarter of 2009.
Consumer Connection Trends. In the third quarter, AT&T posted a decline in total
consumer revenue connections due primarily to expected declines in traditional
voice access lines, partially offset by increases in broadband, U-verse TV and
VoIP (Voice over Internet Protocol) connections. Combined wireline consumer TV
and broadband connections increased by 343,000 in the third quarter and 1.3
million over the past four quarters. AT&T U-verse Voice connections increased by
166,000 in the quarter and 759,000 over the past four quarters. Total consumer
revenue connections at the end of the third quarter were 43.7 million, compared
with 45.7 million at the end of the third quarter of 2009 and 44.3 million at
the end of the second quarter of 2010.
Further Signs of Stabilization in Business Markets. AT&T posted its best
year-over-year business revenue comparisons in six quarters - reflecting
continued solid sales performance and continued improvement in key economic
metrics. Total business revenues were $9.5 billion, a decline of 3.9 percent
versus the year-earlier quarter. Business service revenues, which exclude CPE,
declined 3.7 percent year over year and decreased slightly sequentially, down
1.3 percent.
Business IP Revenues Continue Growth.Business IP data revenues grew 8.0 percent
overall, led by growth in VPN revenues. Global Enterprise Solutions IP data
revenues grew 9.7 percent. Approximately 70 percent of AT&T's frame customers
have made the transition to IP-based solutions, which allows them to easily add
managed services such as network security, cloud services and IP conferencing on
top of their infrastructures.
15.4 Percent Growth in Strategic Business Services Revenues. Revenues from
new-generation capabilities that lead AT&T's most advanced business solutions -
including Ethernet, VPNs, hosting, IP conferencing and application services -
grew 15.4 percent versus the year-earlier quarter and were up 4.5 percent from
the second quarter of 2010, continuing AT&T's strong trends in this category.
Wireline Results. Led by improved consumer and business customer trends, total
wireline revenues posted their smallest year-over-year decline in six quarters,
down 3.0 percent, and down slightly sequentially. Third-quarter revenues in
AT&T's wireline segment totaled $15.3 billion versus $15.7 billion in the
year-earlier quarter. Third-quarter wireline operating expenses were $13.4
billion, down 3.9 percent versus the third quarter of 2009 and down 0.6 percent
sequentially. Wireline operating income totaled $1.8 billion, compared to $1.8
billion in the third quarter of 2009 and $1.9 billion in the second quarter of
2010. AT&T's third-quarter wireline operating income margin was 12.0 percent,
compared with 11.2 percent in the year-earlier quarter and 12.2 percent in the
second quarter of 2010.
4
About AT&T
AT&T Inc. (NYSE:T) is a premier communications holding company. Its subsidiaries
and affiliates - AT&T operating companies - are the providers of AT&T services
in the United States and around the world. With a powerful array of network
resources that includes the nation's fastest mobile broadband network, AT&T is a
leading provider of wireless, Wi-Fi, high speed Internet and voice services. A
leader in mobile broadband, AT&T also offers the best wireless coverage
worldwide, offering the most wireless phones that work in the most countries. It
also offers advanced TV services under the AT&T U-verse and AT&T ¦DIRECTVSM
brands. The company's suite of IP-based business communications services is one
of the most advanced in the world. In domestic markets, AT&T Advertising
Solutions and AT&T Interactive are known for their leadership in local search
and advertising. In 2010, AT&T again ranked among the 50 Most Admired Companies
by FORTUNE magazine.
Additional information about AT&T Inc. and the products and services provided by
AT&T subsidiaries and affiliates is available at http://www.att.com. This AT&T
news release and other announcements are available at
http://www.att.com/newsroom and as part of an RSS feed at www.att.com/rss. Or
follow our news on Twitter at @ATTNews. Find us on Facebook at
www.Facebook.com/ATT to discover more about our consumer and wireless services
or at www.Facebook.com/ATTSmallBiz to discover more about our small business
services.
AT&T products and services are provided or offered by subsidiaries and
affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc.
c 2010 AT&T Intellectual Property. All rights reserved. 3G service not available
in all areas. AT&T, the AT&T logo and all other marks contained herein are
trademarks of AT&T Intellectual Property and/or AT&T affiliated companies.
Cautionary Language Concerning Forward-Looking Statements
Information set forth in this news release contains financial estimates and
other forward-looking statements that are subject to risks and uncertainties,
and actual results may differ materially. A discussion of factors that may
affect future results is contained in AT&T's filings with the Securities and
Exchange Commission. AT&T disclaims any obligation to update or revise
statements contained in this news release based on new information or otherwise.
This news release may contain certain non-GAAP financial measures.
Reconciliations between the non-GAAP financial measures and the GAAP financial
measures are available on the company's Web site at
www.att.com/investor.relations. Accompanying financial statements follow.
NOTE: OIBDA is defined as operating income (loss) before depreciation and
amortization. OIBDA differs from Segment Operating Income (loss), as calculated
in accordance with generally accepted accounting principles (GAAP), in that it
excludes depreciation and amortization. OIBDA 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. OIBDA is not presented
as an alternative measure of operating results or cash flows from operations, as
determined in accordance with GAAP. Our calculation of OIBDA, as presented, may
differ from similarly titled measures reported by other companies.
NOTE: Free cash flow is defined as cash from operations minus capital
expenditures. We believe this metric provides useful information to our
investors because management regularly reviews free cash flow as an important
indicator of how much cash is generated by normal business operations, including
capital expenditures, and makes decisions based on it. Management also views it
as a measure of cash available to pay debt and return cash to shareowners.
5
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Financial | | | | | | | | | | | | | | | | | | |
| Data | | | | | | | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| | | | | | | | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| AT&T | | | | | | | | | | | | | | | | | | |
| Inc. | | | | | | | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| Consolidated | | | | | | | | | | | | | | | | | | |
| Statements | | | | | | | | | | | | | | | | | | |
| of Income | | | | | | | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| Dollars | | | | | | | | | | | | | | | | | | |
| in | | | | | | | | | | | | | | | | | | |
| millions | | | | | | | | | | | | | | | | | | |
| except | | | | | | | | | | | | | | | | | | |
| per | | | | | | | | | | | | | | | | | | |
| share | | | | | | | | | | | | | | | | | | |
| amounts | | | | | | | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| Unaudited | Three Months Ended | | | Nine Months Ended |
+----------------+--------------------------------------------------------------------------------------------------+--------+--------+--------------------------------------------------------------------------------------------------+
| | | 9/30/2010 | | | 9/30/2009 | | | % Chg | | 9/30/2010 | | | 9/30/2009 | | | % Chg |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+--------------------------+--------+-----------------+--------+--------+-----------------+--------+--------+--------------------------+
| Operating | | | | | | | | | | | | | | | | | | |
| Revenues | | | | | | | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| | | $ | 13,675 | | | $ | 12,372 | | | | 10.5 | % | | $ | 39,711 | | | $ | 35,978 | | | | 10.4 | % |
| Wireless | | | | | | | | | | | | | | | | | | | | | | | | |
| service | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 6,973 | | | | 7,943 | | | | -12.2 | % | | | 21,671 | | | | 24,701 | | | | -12.3 | % |
| Voice | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Data | | | 6,928 | | | | 6,448 | | | | 7.4 | % | | | 20,407 | | | | 19,053 | | | | 7.1 | % |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 961 | | | | 1,162 | | | | -17.3 | % | | | 3,009 | | | | 3,622 | | | | -16.9 | % |
| Directory | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 3,044 | | | | 2,809 | | | | 8.4 | % | | | 8,121 | | | | 8,451 | | | | -3.9 | % |
| Other | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 31,581 | | | | 30,734 | | | | 2.8 | % | | | 92,919 | | | | 91,805 | | | | 1.2 | % |
| Total | | | | | | | | | | | | | | | | | | | | | | | | |
| Operating | | | | | | | | | | | | | | | | | | | | | | | | |
| Revenues | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Operating | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Cost | | | | | | | | | | | | | | | | | | | | | | | | |
| of | | | | | | | | | | | | | | | | | | | | | | | | |
| services | | | | | | | | | | | | | | | | | | | | | | | | |
| and | | | | | | | | | | | | | | | | | | | | | | | | |
| sales | | | | | | | | | | | | | | | | | | | | | | | | |
| (exclusive | | | | | | | | | | | | | | | | | | | | | | | | |
| of | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 13,519 | | | | 12,907 | | | | 4.7 | % | | | 38,235 | | | | 37,665 | | | | 1.5 | % |
| depreciation | | | | | | | | | | | | | | | | | | | | | | | | |
| and | | | | | | | | | | | | | | | | | | | | | | | | |
| amortization | | | | | | | | | | | | | | | | | | | | | | | | |
| shown | | | | | | | | | | | | | | | | | | | | | | | | |
| separately | | | | | | | | | | | | | | | | | | | | | | | | |
| below) | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 7,707 | | | | 7,574 | | | | 1.8 | % | | | 22,570 | | | | 22,914 | | | | -1.5 | % |
| Selling, | | | | | | | | | | | | | | | | | | | | | | | | |
| general | | | | | | | | | | | | | | | | | | | | | | | | |
| and | | | | | | | | | | | | | | | | | | | | | | | | |
| administrative | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 4,891 | | | | 4,881 | | | | 0.2 | % | | | 14,529 | | | | 14,614 | | | | -0.6 | % |
| Depreciation | | | | | | | | | | | | | | | | | | | | | | | | |
| and | | | | | | | | | | | | | | | | | | | | | | | | |
| amortization | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 26,117 | | | | 25,362 | | | | 3.0 | % | | | 75,334 | | | | 75,193 | | | | 0.2 | % |
| Total | | | | | | | | | | | | | | | | | | | | | | | | |
| Operating | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Operating | | | 5,464 | | | | 5,372 | | | | 1.7 | % | | | 17,585 | | | | 16,612 | | | | 5.9 | % |
| Income | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Interest | | | 729 | | | | 851 | | | | -14.3 | % | | | 2,248 | | | | 2,573 | | | | -12.6 | % |
| Expense | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Equity | | | 217 | | | | 181 | | | | 19.9 | % | | | 629 | | | | 549 | | | | 14.6 | % |
| in Net | | | | | | | | | | | | | | | | | | | | | | | | |
| Income | | | | | | | | | | | | | | | | | | | | | | | | |
| of | | | | | | | | | | | | | | | | | | | | | | | | |
| Affiliates | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Other | | | 125 | | | | 29 | | | | - | | | | 825 | | | | 44 | | | | - | |
| Income | | | | | | | | | | | | | | | | | | | | | | | | |
| (Expense) | | | | | | | | | | | | | | | | | | | | | | | | |
| - Net | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Income | | | 5,077 | | | | 4,731 | | | | 7.3 | % | | | 16,791 | | | | 14,632 | | | | 14.8 | % |
| from | | | | | | | | | | | | | | | | | | | | | | | | |
| Continuing | | | | | | | | | | | | | | | | | | | | | | | | |
| Operations | | | | | | | | | | | | | | | | | | | | | | | | |
| Before | | | | | | | | | | | | | | | | | | | | | | | | |
| Income | | | | | | | | | | | | | | | | | | | | | | | | |
| Taxes | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Income | | | (6,560 | ) | | | 1,463 | | | | - | | | | (1,512 | ) | | | 4,886 | | | | - | |
| Tax | | | | | | | | | | | | | | | | | | | | | | | | |
| (Benefit) | | | | | | | | | | | | | | | | | | | | | | | | |
| Expense | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Income | | | 11,637 | | | | 3,268 | | | | - | | | | 18,303 | | | | 9,746 | | | | 87.8 | % |
| from | | | | | | | | | | | | | | | | | | | | | | | | |
| Continuing | | | | | | | | | | | | | | | | | | | | | | | | |
| Operations | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Income | | | 780 | | | | 7 | | | | - | | | | 777 | | | | 6 | | | | - | |
| from | | | | | | | | | | | | | | | | | | | | | | | | |
| Discontinued | | | | | | | | | | | | | | | | | | | | | | | | |
| Operations, | | | | | | | | | | | | | | | | | | | | | | | | |
| net of tax | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Net | | | 12,417 | | | | 3,275 | | | | - | | | | 19,080 | | | | 9,752 | | | | 95.7 | % |
| Income | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | (78 | ) | | | (83 | ) | | | 6.0 | % | | | (243 | ) | | | (236 | ) | | | -3.0 | % |
| Less: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net | | | | | | | | | | | | | | | | | | | | | | | | |
| Income | | | | | | | | | | | | | | | | | | | | | | | | |
| Attributable | | | | | | | | | | | | | | | | | | | | | | | | |
| to | | | | | | | | | | | | | | | | | | | | | | | | |
| Noncontrolling | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Net | | $ | 12,339 | | | $ | 3,192 | | | | - | | | $ | 18,837 | | | $ | 9,516 | | | | 98.0 | % |
| Income | | | | | | | | | | | | | | | | | | | | | | | | |
| Attributable | | | | | | | | | | | | | | | | | | | | | | | | |
| to AT&T | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Basic | | | | | | | | | | | | | | | | | | | | | | | | |
| Earnings | | | | | | | | | | | | | | | | | | | | | | | | |
| Per | | | | | | | | | | | | | | | | | | | | | | | | |
| Share | | | | | | | | | | | | | | | | | | | | | | | | |
| from | | | | | | | | | | | | | | | | | | | | | | | | |
| Continuing | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | $ | 1.96 | | | $ | 0.54 | | | | - | | | $ | 3.06 | | | $ | 1.61 | | | | 90.1 | % |
| Operations | | | | | | | | | | | | | | | | | | | | | | | | |
| Attributable | | | | | | | | | | | | | | | | | | | | | | | | |
| to AT&T | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Basic | | | | | | | | | | | | | | | | | | | | | | | | |
| Earnings | | | | | | | | | | | | | | | | | | | | | | | | |
| Per | | | | | | | | | | | | | | | | | | | | | | | | |
| Share | | | | | | | | | | | | | | | | | | | | | | | | |
| from | | | | | | | | | | | | | | | | | | | | | | | | |
| Discontinued | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 0.13 | | | | - | | | | - | | | | 0.13 | | | | - | | | | - | |
| Operations | | | | | | | | | | | | | | | | | | | | | | | | |
| Attributable | | | | | | | | | | | | | | | | | | | | | | | | |
| to AT&T | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Basic | | $ | 2.09 | | | $ | 0.54 | | | | - | | | $ | 3.19 | | | $ | 1.61 | | | | 98.1 | % |
| Earnings | | | | | | | | | | | | | | | | | | | | | | | | |
| Per | | | | | | | | | | | | | | | | | | | | | | | | |
| Share | | | | | | | | | | | | | | | | | | | | | | | | |
| Attributable | | | | | | | | | | | | | | | | | | | | | | | | |
| to AT&T | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Weighted | | | | | | | | | | | | | | | | | | | | | | | | |
| Average | | | | | | | | | | | | | | | | | | | | | | | | |
| Common | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 5,909 | | | | 5,901 | | | | 0.1 | % | | | 5,908 | | | | 5,899 | | | | 0.2 | % |
| Shares | | | | | | | | | | | | | | | | | | | | | | | | |
| Outstanding | | | | | | | | | | | | | | | | | | | | | | | | |
| (000,000) | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Diluted | | | | | | | | | | | | | | | | | | | | | | | | |
| Earnings | | | | | | | | | | | | | | | | | | | | | | | | |
| Per | | | | | | | | | | | | | | | | | | | | | | | | |
| Share | | | | | | | | | | | | | | | | | | | | | | | | |
| from | | | | | | | | | | | | | | | | | | | | | | | | |
| Continuing | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | $ | 1.95 | | | $ | 0.54 | | | | - | | | $ | 3.04 | | | $ | 1.61 | | | | 88.8 | % |
| Operations | | | | | | | | | | | | | | | | | | | | | | | | |
| Attributable | | | | | | | | | | | | | | | | | | | | | | | | |
| to AT&T | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Diluted | | | | | | | | | | | | | | | | | | | | | | | | |
| Earnings | | | | | | | | | | | | | | | | | | | | | | | | |
| Per | | | | | | | | | | | | | | | | | | | | | | | | |
| Share | | | | | | | | | | | | | | | | | | | | | | | | |
| from | | | | | | | | | | | | | | | | | | | | | | | | |
| Discontinued | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 0.13 | | | | - | | | | - | | | | 0.13 | | | | - | | | | - | |
| Operations | | | | | | | | | | | | | | | | | | | | | | | | |
| Attributable | | | | | | | | | | | | | | | | | | | | | | | | |
| to AT&T | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Diluted | | $ | 2.08 | | | $ | 0.54 | | | | - | | | $ | 3.17 | | | $ | 1.61 | | | | 96.9 | % |
| Earnings | | | | | | | | | | | | | | | | | | | | | | | | |
| Per | | | | | | | | | | | | | | | | | | | | | | | | |
| Share | | | | | | | | | | | | | | | | | | | | | | | | |
| Attributable | | | | | | | | | | | | | | | | | | | | | | | | |
| to AT&T | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Weighted | | | | | | | | | | | | | | | | | | | | | | | | |
| Average | | | | | | | | | | | | | | | | | | | | | | | | |
| Common | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 5,938 | | | | 5,922 | | | | 0.3 | % | | | 5,937 | | | | 5,922 | | | | 0.3 | % |
| Shares | | | | | | | | | | | | | | | | | | | | | | | | |
| Outstanding | | | | | | | | | | | | | | | | | | | | | | | | |
| with | | | | | | | | | | | | | | | | | | | | | | | | |
| Dilution | | | | | | | | | | | | | | | | | | | | | | | | |
| (000,000) | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Financial | | | | | | | | | | | | | | | | | | |
| Data | | | | | | | | | | | | | | | | | | |
+--------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| | | | | | | | | | | | | | | | | | | |
+--------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| AT&T | | | | | | | | | | | | | | | | | | |
| Inc. | | | | | | | | | | | | | | | | | | |
+--------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| Statements | | | | | | | | | | | | | | | | | | |
| of Segment | | | | | | | | | | | | | | | | | | |
| Income | | | | | | | | | | | | | | | | | | |
+--------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| Dollars | | | | | | | | | | | | | | | | | | |
| in | | | | | | | | | | | | | | | | | | |
| millions | | | | | | | | | | | | | | | | | | |
+--------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| Unaudited | | | | | | | | | | | | | | | | | | |
+--------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| | | Three Months Ended | | Nine Months Ended |
+--------------+--------+--------------------------------------------------------------------------------------------------+--------+--------------------------------------------------------------------------------------------------+
| | | | | | | | | | | | | | | | | | | |
+--------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| Wireless | | 9/30/2010 | | | 9/30/2009 | | | % Chg | | 9/30/2010 | | | 9/30/2009 | | | % Chg |
+--------------+--------+-----------------+--------+--------+-----------------+--------+--------+--------------------------+--------+-----------------+--------+--------+-----------------+--------+--------+--------------------------+
| Segment | | | | | | | | | | | | | | | | | | |
| Operating | | | | | | | | | | | | | | | | | | |
| Revenues | | | | | | | | | | | | | | | | | | |
+--------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| | | $ | 13,675 | | | $ | 12,372 | | | | 10.5 | % | | $ | 39,711 | | | $ | 35,978 | | | | 10.4 | % |
| Service | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 1,505 | | | | 1,255 | | | | 19.9 | % | | | 3,608 | | | | 3,709 | | | | -2.7 | % |
| Equipment | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 15,180 | | | | 13,627 | | | | 11.4 | % | | | 43,319 | | | | 39,687 | | | | 9.2 | % |
| Total | | | | | | | | | | | | | | | | | | | | | | | | |
| Segment | | | | | | | | | | | | | | | | | | | | | | | | |
| Operating | | | | | | | | | | | | | | | | | | | | | | | | |
| Revenues | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Segment | | | | | | | | | | | | | | | | | | | | | | | | |
| Operating | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 10,040 | | | | 8,645 | | | | 16.1 | % | | | 26,785 | | | | 24,959 | | | | 7.3 | % |
| Operations | | | | | | | | | | | | | | | | | | | | | | | | |
| and | | | | | | | | | | | | | | | | | | | | | | | | |
| support | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 1,640 | | | | 1,490 | | | | 10.1 | % | | | 4,776 | | | | 4,493 | | | | 6.3 | % |
| Depreciation | | | | | | | | | | | | | | | | | | | | | | | | |
| and | | | | | | | | | | | | | | | | | | | | | | | | |
| amortization | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 11,680 | | | | 10,135 | | | | 15.2 | % | | | 31,561 | | | | 29,452 | | | | 7.2 | % |
| Total | | | | | | | | | | | | | | | | | | | | | | | | |
| Segment | | | | | | | | | | | | | | | | | | | | | | | | |
| Operating | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Segment | | | 3,500 | | | | 3,492 | | | | 0.2 | % | | | 11,758 | | | | 10,235 | | | | 14.9 | % |
| Operating | | | | | | | | | | | | | | | | | | | | | | | | |
| Income | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Equity | | | (6 | ) | | | - | | | | - | | | | 14 | | | | - | | | | - | |
| in Net | | | | | | | | | | | | | | | | | | | | | | | | |
| Income | | | | | | | | | | | | | | | | | | | | | | | | |
| of | | | | | | | | | | | | | | | | | | | | | | | | |
| Affiliates | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Segment | | $ | 3,494 | | | $ | 3,492 | | | | 0.1 | % | | $ | 11,772 | | | $ | 10,235 | | | | 15.0 | % |
| Income | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Segment | | | 23.1 | % | | | 25.6 | % | | | | | | | 27.1 | % | | | 25.8 | % | | | | |
| Operating | | | | | | | | | | | | | | | | | | | | | | | | |
| Income | | | | | | | | | | | | | | | | | | | | | | | | |
| Margin | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Wireline | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Segment | | | | | | | | | | | | | | | | | | | | | | | | |
| Operating | | | | | | | | | | | | | | | | | | | | | | | | |
| Revenues | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | $ | 6,973 | | | $ | 7,943 | | | | -12.2 | % | | $ | 21,671 | | | $ | 24,701 | | | | -12.3 | % |
| Voice | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Data | | | 6,928 | | | | 6,448 | | | | 7.4 | % | | | 20,407 | | | | 19,053 | | | | 7.1 | % |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 1,374 | | | | 1,358 | | | | 1.2 | % | | | 4,014 | | | | 4,146 | | | | -3.2 | % |
| Other | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 15,275 | | | | 15,749 | | | | -3.0 | % | | | 46,092 | | | | 47,900 | | | | -3.8 | % |
| Total | | | | | | | | | | | | | | | | | | | | | | | | |
| Segment | | | | | | | | | | | | | | | | | | | | | | | | |
| Operating | | | | | | | | | | | | | | | | | | | | | | | | |
| Revenues | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Segment | | | | | | | | | | | | | | | | | | | | | | | | |
| Operating | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 10,318 | | | | 10,762 | | | | -4.1 | % | | | 31,324 | | | | 32,618 | | | | -4.0 | % |
| Operations | | | | | | | | | | | | | | | | | | | | | | | | |
| and | | | | | | | | | | | | | | | | | | | | | | | | |
| support | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 3,118 | | | | 3,226 | | | | -3.3 | % | | | 9,337 | | | | 9,594 | | | | -2.7 | % |
| Depreciation | | | | | | | | | | | | | | | | | | | | | | | | |
| and | | | | | | | | | | | | | | | | | | | | | | | | |
| amortization | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 13,436 | | | | 13,988 | | | | -3.9 | % | | | 40,661 | | | | 42,212 | | | | -3.7 | % |
| Total | | | | | | | | | | | | | | | | | | | | | | | | |
| Segment | | | | | | | | | | | | | | | | | | | | | | | | |
| Operating | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Segment | | | 1,839 | | | | 1,761 | | | | 4.4 | % | | | 5,431 | | | | 5,688 | | | | -4.5 | % |
| Operating | | | | | | | | | | | | | | | | | | | | | | | | |
| Income | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Equity | | | 2 | | | | 9 | | | | -77.8 | % | | | 7 | | | | 16 | | | | -56.3 | % |
| in Net | | | | | | | | | | | | | | | | | | | | | | | | |
| Income | | | | | | | | | | | | | | | | | | | | | | | | |
| of | | | | | | | | | | | | | | | | | | | | | | | | |
| Affiliates | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Segment | | $ | 1,841 | | | $ | 1,770 | | | | 4.0 | % | | $ | 5,438 | | | $ | 5,704 | | | | -4.7 | % |
| Income | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Segment | | | 12.0 | % | | | 11.2 | % | | | | | | | 11.8 | % | | | 11.9 | % | | | | |
| Operating | | | | | | | | | | | | | | | | | | | | | | | | |
| Income | | | | | | | | | | | | | | | | | | | | | | | | |
| Margin | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Advertising | | | | | | | | | | | | | | | | | | | | | | | | |
| Solutions | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Segment | | $ | 961 | | | $ | 1,162 | | | | -17.3 | % | | $ | 3,009 | | | $ | 3,622 | | | | -16.9 | % |
| Operating | | | | | | | | | | | | | | | | | | | | | | | | |
| Revenues | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Segment | | | | | | | | | | | | | | | | | | | | | | | | |
| Operating | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 640 | | | | 686 | | | | -6.7 | % | | | 1,988 | | | | 2,113 | | | | -5.9 | % |
| Operations | | | | | | | | | | | | | | | | | | | | | | | | |
| and | | | | | | | | | | | | | | | | | | | | | | | | |
| support | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 123 | | | | 159 | | | | -22.6 | % | | | 393 | | | | 501 | | | | -21.6 | % |
| Depreciation | | | | | | | | | | | | | | | | | | | | | | | | |
| and | | | | | | | | | | | | | | | | | | | | | | | | |
| amortization | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 763 | | | | 845 | | | | -9.7 | % | | | 2,381 | | | | 2,614 | | | | -8.9 | % |
| Total | | | | | | | | | | | | | | | | | | | | | | | | |
| Segment | | | | | | | | | | | | | | | | | | | | | | | | |
| Operating | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Segment | | $ | 198 | | | $ | 317 | | | | -37.5 | % | | $ | 628 | | | $ | 1,008 | | | | -37.7 | % |
| Income | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Segment | | | 20.6 | % | | | 27.3 | % | | | | | | | 20.9 | % | | | 27.8 | % | | | | |
| Income | | | | | | | | | | | | | | | | | | | | | | | | |
| Margin | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Other | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Segment | | $ | 165 | | | $ | 196 | | | | -15.8 | % | | $ | 499 | | | $ | 596 | | | | -16.3 | % |
| Operating | | | | | | | | | | | | | | | | | | | | | | | | |
| Revenues | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Segment | | | 238 | | | | 394 | | | | -39.6 | % | | | 731 | | | | 915 | | | | -20.1 | % |
| Operating | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Segment | | | (73 | ) | | | (198 | ) | | | 63.1 | % | | | (232 | ) | | | (319 | ) | | | 27.3 | % |
| Operating | | | | | | | | | | | | | | | | | | | | | | | | |
| Loss | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Equity | | | 221 | | | | 172 | | | | 28.5 | % | | | 608 | | | | 532 | | | | 14.3 | % |
| in Net | | | | | | | | | | | | | | | | | | | | | | | | |
| Income | | | | | | | | | | | | | | | | | | | | | | | | |
| of | | | | | | | | | | | | | | | | | | | | | | | | |
| Affiliates | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Segment | | $ | 148 | | | $ | (26 | ) | | | - | | | $ | 376 | | | $ | 213 | | | | 76.5 | % |
| Income | | | | | | | | | | | | | | | | | | | | | | | | |
| (Loss) | | | | | | | | | | | | | | | | | | | | | | | | |
| from | | | | | | | | | | | | | | | | | | | | | | | | |
| Continuing | | | | | | | | | | | | | | | | | | | | | | | | |
| Operations | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Segment | | | 89.7 | % | | | - | | | | | | | | 75.4 | % | | | 35.7 | % | | | | |
| Income | | | | | | | | | | | | | | | | | | | | | | | | |
| Margin | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Financial | | | | | | |
| Data | | | | | | |
+----------------+--------+-------------------+--------+--------+-------------------+--------+
| | | | | | | |
+----------------+--------+-------------------+--------+--------+-------------------+--------+
| AT&T | | | | | | |
| Inc. | | | | | | |
+----------------+--------+-------------------+--------+--------+-------------------+--------+
| Consolidated | | | | | | |
| Balance | | | | | | |
| Sheets | | | | | | |
+----------------+--------+-------------------+--------+--------+-------------------+--------+
| Dollars | | | | | | |
| in | | | | | | |
| millions | | | | | | |
| except | | | | | | |
| per | | | | | | |
| share | | | | | | |
| amounts | | | | | | |
+----------------+--------+-------------------+--------+--------+-------------------+--------+
| | | 9/30/10 | | | 12/31/09 | |
+----------------+--------+-------------------+--------+--------+-------------------+--------+
| | | Unaudited | | | | |
+----------------+--------+-------------------+--------+--------+-------------------+--------+
| | | | | | | |
+----------------+--------+-------------------+--------+--------+-------------------+--------+
| Assets | | | | | | |
+----------------+--------+-------------------+--------+--------+-------------------+--------+
| Current | | | | | | |
| Assets | | | | | | |
+----------------+--------+-------------------+--------+--------+-------------------+--------+
| Cash | | $ | 3,246 | | | $ | 3,741 | |
| and | | | | | | | | |
| cash | | | | | | | | |
| equivalents | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Accounts | | | | | | | | |
| receivable | | | | | | | | |
| - net of | | | | | | | | |
| allowances | | | | | | | | |
| for | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| | | | 13,606 | | | | 14,845 | |
| doubtful | | | | | | | | |
| accounts | | | | | | | | |
| of $978 | | | | | | | | |
| and | | | | | | | | |
| $1,202 | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Prepaid | | | 1,686 | | | | 1,562 | |
| expenses | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Deferred | | | 1,059 | | | | 1,247 | |
| income | | | | | | | | |
| taxes | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Other | | | 2,380 | | | | 3,792 | |
| current | | | | | | | | |
| assets | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| | | | 21,977 | | | | 25,187 | |
| Total | | | | | | | | |
| current | | | | | | | | |
| assets | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Property, | | | 240,466 | | | | 230,295 | |
| plant and | | | | | | | | |
| equipment | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| | | | (138,991 | ) | | | (130,242 | ) |
| Less: | | | | | | | | |
| accumulated | | | | | | | | |
| depreciation | | | | | | | | |
| and | | | | | | | | |
| amortization | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Property, | | | 101,475 | | | | 100,053 | |
| Plant and | | | | | | | | |
| Equipment | | | | | | | | |
| - Net | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Goodwill | | | 73,447 | | | | 72,782 | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Licenses | | | 50,113 | | | | 48,741 | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Customer | | | 5,369 | | | | 7,393 | |
| Lists | | | | | | | | |
| and | | | | | | | | |
| Relationships | | | | | | | | |
| - Net | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Other | | | 5,525 | | | | 5,494 | |
| Intangible | | | | | | | | |
| Assets - | | | | | | | | |
| Net | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Investments | | | 4,544 | | | | 2,921 | |
| in Equity | | | | | | | | |
| Affiliates | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Other | | | 6,802 | | | | 6,275 | |
| Assets | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| | | $ | 269,252 | | | $ | 268,846 | |
| Total | | | | | | | | |
| Assets | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Liabilities | | | | | | | | |
| and | | | | | | | | |
| Stockholders' | | | | | | | | |
| Equity | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Current | | | | | | | | |
| Liabilities | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Debt | | $ | 6,426 | | | $ | 7,361 | |
| maturing | | | | | | | | |
| within | | | | | | | | |
| one year | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Accounts | | | 18,417 | | | | 21,260 | |
| payable | | | | | | | | |
| and | | | | | | | | |
| accrued | | | | | | | | |
| liabilities | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Advanced | | | 3,933 | | | | 4,170 | |
| billing | | | | | | | | |
| and | | | | | | | | |
| customer | | | | | | | | |
| deposits | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Accrued | | | 1,416 | | | | 1,681 | |
| taxes | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Dividends | | | 2,482 | | | | 2,479 | |
| payable | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| | | | 32,674 | | | | 36,951 | |
| Total | | | | | | | | |
| current | | | | | | | | |
| liabilities | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Long-Term | | | 62,540 | | | | 64,720 | |
| Debt | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Deferred | | | | | | | | |
| Credits | | | | | | | | |
| and | | | | | | | | |
| Other | | | | | | | | |
| Noncurrent | | | | | | | | |
| Liabilities | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Deferred | | | 20,651 | | | | 23,781 | |
| income | | | | | | | | |
| taxes | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Postemployment | | | 27,071 | | | | 27,847 | |
| benefit | | | | | | | | |
| obligation | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Other | | | 13,023 | | | | 13,226 | |
| noncurrent | | | | | | | | |
| liabilities | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| | | | 60,745 | | | | 64,854 | |
| Total | | | | | | | | |
| deferred | | | | | | | | |
| credits | | | | | | | | |
| and | | | | | | | | |
| other | | | | | | | | |
| noncurrent | | | | | | | | |
| liabilities | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Stockholders' | | | | | | | | |
| Equity | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Common | | | | | | | | |
| stock | | | | | | | | |
| ($1 | | | | | | | | |
| par | | | | | | | | |
| value, | | | | | | | | |
| 14,000,000,000 | | | | | | | | |
| authorized | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| at | | | | | | | | |
| September | | | | | | | | |
| 30, 2010 | | | | | | | | |
| and | | | | | | | | |
| December | | | | | | | | |
| 31, 2009: | | | | | | | | |
| issued | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| | | | 6,495 | | | | 6,495 | |
| 6,495,231,088 | | | | | | | | |
| at September | | | | | | | | |
| 30, 2010 and | | | | | | | | |
| December 31, | | | | | | | | |
| 2009) | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Additional | | | 91,748 | | | | 91,707 | |
| paid-in | | | | | | | | |
| capital | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Retained | | | 50,751 | | | | 39,366 | |
| earnings | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Treasury | | | | | | | | |
| stock | | | | | | | | |
| (585,370,749 | | | | | | | | |
| at September | | | | | | | | |
| 30, 2010 and | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| | | | (21,112 | ) | | | (21,260 | ) |
| 593,300,187 | | | | | | | | |
| at December | | | | | | | | |
| 31, 2009, | | | | | | | | |
| at cost) | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Accumulated | | | (14,888 | ) | | | (14,412 | ) |
| other | | | | | | | | |
| comprehensive | | | | | | | | |
| loss | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| Noncontrolling | | | 299 | | | | 425 | |
| interest | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| | | | 113,293 | | | | 102,321 | |
| Total | | | | | | | | |
| stockholders' | | | | | | | | |
| equity | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
| | | $ | 269,252 | | | $ | 268,846 | |
| Total | | | | | | | | |
| Liabilities | | | | | | | | |
| and | | | | | | | | |
| Stockholders' | | | | | | | | |
| Equity | | | | | | | | |
+----------------+--------+--------+----------+--------+--------+--------+----------+--------+
+----------------+--------+--------+---------+--------+--------+--------+---------+--------+
| Financial | | | | | | |
| Data | | | | | | |
+----------------+--------+------------------+--------+--------+------------------+--------+
| | | | | | | |
+----------------+--------+------------------+--------+--------+------------------+--------+
| AT&T | | | | | | |
| Inc. | | | | | | |
+----------------+--------+------------------+--------+--------+------------------+--------+
| Consolidated | | | | | | |
| Statements | | | | | | |
| of Cash | | | | | | |
| Flows | | | | | | |
+----------------+--------+------------------+--------+--------+------------------+--------+
| Dollars | | | | | | |
| in | | | | | | |
| millions, | | | | | | |
| increase | | | | | | |
| (decrease) | | | | | | |
| in cash | | | | | | |
| and cash | | | | | | |
| equivalents | | | | | | |
+----------------+--------+------------------+--------+--------+------------------+--------+
| Unaudited | | | | | | |
+----------------+--------+------------------+--------+--------+------------------+--------+
| | | Nine months ended |
+----------------+--------+----------------------------------------------------------------+
| | | September 30, |
+----------------+--------+----------------------------------------------------------------+
| | | 2010 | | | 2009 | |
+----------------+--------+------------------+--------+--------+------------------+--------+
| Operating | | | | | | |
| Activities | | | | | | |
+----------------+--------+------------------+--------+--------+------------------+--------+
| Net | | $ | 19,080 | | | $ | 9,752 | |
| income | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+---------+--------+
| Adjustments | | | | | | | | |
| to | | | | | | | | |
| reconcile | | | | | | | | |
| net income | | | | | | | | |
| to | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+---------+--------+
| net | | | | | | | | |
| cash | | | | | | | | |
| provided | | | | | | | | |
| by | | | | | | | | |
| operating | | | | | | | | |
| activities: | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+---------+--------+
| | | | 14,529 | | | | 14,614 | |
| Depreciation | | | | | | | | |
| and | | | | | | | | |
| amortization | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+---------+--------+
| | | | (531 | ) | | | (430 | ) |
| Undistributed | | | | | | | | |
| earnings from | | | | | | | | |
| investments | | | | | | | | |
| in equity | | | | | | | | |
| affiliates | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+---------+--------+
| | | | 973 | | | | 1,383 | |
| Bad | | | | | | | | |
| debt | | | | | | | | |
| expense | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+---------+--------+
| | | | (4,146 | ) | | | 2,476 | |
| Deferred | | | | | | | | |
| income | | | | | | | | |
| tax | | | | | | | | |
| expense | | | | | | | | |
| and | | | | | | | | |
| noncurrent | | | | | | | | |
| unrecognized | | | | | | | | |
| tax benefits | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+---------+--------+
| | | | (746 | ) | | | 98 | |
| Net | | | | | | | | |
| (gain) | | | | | | | | |
| loss | | | | | | | | |
| from | | | | | | | | |
| impairment | | | | | | | | |
| and sale | | | | | | | | |
| of | | | | | | | | |
| investments | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+---------+--------+
| | | | (777 | ) | | | (6 | ) |
| Income | | | | | | | | |
| from | | | | | | | | |
| discontinued | | | | | | | | |
| operations | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+---------+--------+
| | | | | | | | | |
| Changes | | | | | | | | |
| in | | | | | | | | |
| operating | | | | | | | | |
| assets | | | | | | | | |
| and | | | | | | | | |
| liabilities: | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+---------+--------+
| | | | 266 | | | | (270 | ) |
| Accounts | | | | | | | | |
| receivable | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+---------+--------+
| | | | 495 | | | | (269 | ) |
| Other | | | | | | | | |
| current | | | | | | | | |
| assets | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+---------+--------+
| | | | (2,861 | ) | | | (1,551 | ) |
| Accounts | | | | | | | | |
| payable | | | | | | | | |
| and | | | | | | | | |
| accrued | | | | | | | | |
| liabilities | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+---------+--------+
| Net | | | (243 | ) | | | (236 | ) |
| income | | | | | | | | |
| attributable | | | | | | | | |
| to | | | | | | | | |
| noncontrolling | | | | | | | | |
| interest | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+---------+--------+
| | | | (689 | ) | | | (117 | ) |
| Other | | | | | | | | |
| - net | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+---------+--------+
| Total | | | 6,270 | | | | 15,692 | |
| Adjustments | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+---------+--------+
| Net | | | 25,350 | | | | 25,444 | |
| Cash | | | | | | | | |
| Provided | | | | | | | | |
| by | | | | | | | | |
| Operating | | | | | | | | |
| Activities | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+---------+--------+
| | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+---------+--------+
| Investing | | | | | | | | |
| Activities | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+---------+--------+
| Construction | | | | | | | | |
| and capital | | | | | | | | |
| expenditures | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+---------+--------+
| | | | (13,170 | ) | | | (11,034 | ) |
| Capital | | | | | | | | |
| expenditures | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+---------+--------+
| | | | (577 | ) | | | (553 | ) |
| Interest | | | | | | | | |
| during | | | | | | | | |
| construction | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+---------+--------+
| Acquisitions, | | | (2,615 | ) | | | (184 | ) |
| net of cash | | | | | | | | |
| acquired | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+---------+--------+
| Dispositions | | | 1,821 | | | | 205 | |
+----------------+--------+--------+---------+--------+--------+--------+---------+--------+
| (Purchases) | | | (437 | ) | | | 11 | |
| and sales | | | | | | | | |
| of | | | | | | | | |
| securities, | | | | | | | | |
| net | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+---------+--------+
| Other | | | 22 | | | | 19 | |
+----------------+--------+--------+---------+--------+--------+--------+---------+--------+
| Net | | | (14,956 | ) | | | (11,536 | ) |
| Cash | | | | | | | | |
| Used | | | | | | | | |
| in | | | | | | | | |
| Investing | | | | | | | | |
| Activities | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+---------+--------+
| | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+---------+--------+
| Financing | | | | | | | | |
| Activities | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+---------+--------+
| Net | | | | | | | | |
| change | | | | | | | | |
| in | | | | | | | | |
| short-term | | | | | | | | |
| borrowings | | | | | | | | |
| with | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+---------+--------+
| original | | | (33 | ) | | | (3,918 | ) |
| maturities | | | | | | | | |
| of three | | | | | | | | |
| months or | | | | | | | | |
| less | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+---------+--------+
| Issuance | | | 2,235 | | | | 8,161 | |
| of | | | | | | | | |
| long-term | | | | | | | | |
| debt | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+---------+--------+
| Repayment | | | (5,280 | ) | | | (6,169 | ) |
| of | | | | | | | | |
| long-term | | | | | | | | |
| debt | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+---------+--------+
| Issuance | | | 24 | | | | 8 | |
| of | | | | | | | | |
| treasury | | | | | | | | |
| stock | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+---------+--------+
| Dividends | | | (7,436 | ) | | | (7,252 | ) |
| paid | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+---------+--------+
| Other | | | (399 | ) | | | (367 | ) |
+----------------+--------+--------+---------+--------+--------+--------+---------+--------+
| Net | | | (10,889 | ) | | | (9,537 | ) |
| Cash | | | | | | | | |
| Used | | | | | | | | |
| in | | | | | | | | |
| Financing | | | | | | | | |
| Activities | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+---------+--------+
| Net | | | (495 | ) | | | 4,371 | |
| increase | | | | | | | | |
| (decrease) | | | | | | | | |
| in cash | | | | | | | | |
| and cash | | | | | | | | |
| equivalents | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+---------+--------+
| Cash | | | 3,741 | | | | 1,727 | |
| and | | | | | | | | |
| cash | | | | | | | | |
| equivalents | | | | | | | | |
| beginning | | | | | | | | |
| of year | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+---------+--------+
| Cash | | $ | 3,246 | | | $ | 6,098 | |
| and | | | | | | | | |
| Cash | | | | | | | | |
| Equivalents | | | | | | | | |
| End of | | | | | | | | |
| Period | | | | | | | | |
+----------------+--------+--------+---------+--------+--------+--------+---------+--------+
+---------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| Financial | | | | | | | | | | | | | | | | | | |
| Data | | | | | | | | | | | | | | | | | | |
+---------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+------------------+--------+--------+------------------+--------+--------+-----------------+--------+
| | | | | | | | | | | | | | | | | | | |
+---------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+------------------+--------+--------+------------------+--------+--------+-----------------+--------+
| AT&T | | | | | | | | | | | | | | | | | | |
| Inc. | | | | | | | | | | | | | | | | | | |
+---------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+------------------+--------+--------+------------------+--------+--------+-----------------+--------+
| Supplementary | | | | | | | | | | | | | | | | | | |
| Operating and | | | | | | | | | | | | | | | | | | |
| Financial | | | | | | | | | | | | | | | | | | |
| Data | | | | | | | | | | | | | | | | | | |
+---------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+------------------+--------+--------+------------------+--------+--------+-----------------+--------+
| Dollars | | | | | | | | | | | | | | | | | | |
| in | | | | | | | | | | | | | | | | | | |
| millions | | | | | | | | | | | | | | | | | | |
| except | | | | | | | | | | | | | | | | | | |
| per | | | | | | | | | | | | | | | | | | |
| share | | | | | | | | | | | | | | | | | | |
| amounts | | | | | | | | | | | | | | | | | | |
+---------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+------------------+--------+--------+------------------+--------+--------+-----------------+--------+
| Unaudited | | Three Months Ended | | Nine Months Ended |
+---------------+--------+--------------------------------------------------------------------------------------------------+--------+----------------------------------------------------------------------------------------------------+
| | | 9/30/2010 | | | 9/30/2009 | | | % Chg | | | 9/30/2010 | | | 9/30/2009 | | | % Chg | |
+---------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+------------------+--------+--------+------------------+--------+--------+-----------------+--------+
| | | | | | | | | | | | | | | | | | | |
+---------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+------------------+--------+--------+------------------+--------+--------+-----------------+--------+
| Wireless | | | | | | | | | | | | | | | | | | |
+---------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+------------------+--------+--------+------------------+--------+--------+-----------------+--------+
| Wireless | | | | | | | | | | | | 92,761 | | | | 81,596 | | | | 13.7 | % |
| Customers | | | | | | | | | | | | | | | | | | | | | |
| (000) | | | | | | | | | | | | | | | | | | | | | |
+---------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | | 2,631 | | | | 2,026 | | | | 29.9 | % | | | 6,050 | | | | 4,617 | | | | 31.0 | % |
| Net | | | | | | | | | | | | | | | | | | | | | | | | |
| Customer | | | | | | | | | | | | | | | | | | | | | | | | |
| Additions | | | | | | | | | | | | | | | | | | | | | | | | |
| (000) | | | | | | | | | | | | | | | | | | | | | | | | |
+---------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | | - | | | | (30 | ) | | | | | | | 1,591 | | | | (30 | ) | | | | |
| M&A | | | | | | | | | | | | | | | | | | | | | | | | |
| Activity, | | | | | | | | | | | | | | | | | | | | | | | | |
| Partitioned | | | | | | | | | | | | | | | | | | | | | | | | |
| Customers | | | | | | | | | | | | | | | | | | | | | | | | |
| and Other | | | | | | | | | | | | | | | | | | | | | | | | |
| Adjs. (000) | | | | | | | | | | | | | | | | | | | | | | | | |
+---------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| Total | | | 1.32 | % | | | 1.42 | % | | -10 BP | | | 1.30 | % | | | 1.49 | % | | -19 BP |
| Churn7 | | | | | | | | | | | | | | | | | | | | |
+---------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------------------------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------------------------+
| Postpaid | | | | | | | | | | | | | | | 67,688 | | | | 62,961 | | | | 7.5 | % |
| Customers | | | | | | | | | | | | | | | | | | | | | | | | |
| (000)7 | | | | | | | | | | | | | | | | | | | | | | | | |
+---------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | | 745 | | | | 1,333 | | | | -44.1 | % | | | 1,753 | | | | 3,358 | | | | -47.8 | % |
| Net | | | | | | | | | | | | | | | | | | | | | | | | |
| Postpaid | | | | | | | | | | | | | | | | | | | | | | | | |
| Customer | | | | | | | | | | | | | | | | | | | | | | | | |
| Additions | | | | | | | | | | | | | | | | | | | | | | | | |
| (000)7 | | | | | | | | | | | | | | | | | | | | | | | | |
+---------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | | 1.14 | % | | | 1.14 | % | | 0 BP | | | 1.08 | % | | | 1.12 | % | | -4 BP |
| Postpaid | | | | | | | | | | | | | | | | | | | | |
| Churn7 | | | | | | | | | | | | | | | | | | | | |
+---------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------------------------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------------------------+
| Licensed | | | | | | | | | | | | | | | 308 | | | | 306 | | | | 0.7 | % |
| POPs | | | | | | | | | | | | | | | | | | | | | | | | |
| (000,000) | | | | | | | | | | | | | | | | | | | | | | | | |
+---------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| Prepaid | | | | | | | | | | | | | | | 6,209 | | | | 5,386 | | | | 15.3 | % |
| Customers | | | | | | | | | | | | | | | | | | | | | | | | |
| (000)7 | | | | | | | | | | | | | | | | | | | | | | | | |
+---------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | | 321 | | | | (176 | ) | | | | | | | 645 | | | | (743 | ) | | | | |
| Net | | | | | | | | | | | | | | | | | | | | | | | | |
| Prepaid | | | | | | | | | | | | | | | | | | | | | | | | |
| Customer | | | | | | | | | | | | | | | | | | | | | | | | |
| Additions | | | | | | | | | | | | | | | | | | | | | | | | |
| (000)7 | | | | | | | | | | | | | | | | | | | | | | | | |
+---------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| Connected | | | | | | | | | | | | | | | 7,843 | | | | 3,315 | | | | | |
| Devices | | | | | | | | | | | | | | | | | | | | | | | | |
| Customers | | | | | | | | | | | | | | | | | | | | | | | | |
| (000)7 | | | | | | | | | | | | | | | | | | | | | | | | |
+---------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | | 1,159 | | | | 235 | | | | | | | | 3,107 | | | | 683 | | | | | |
| Net | | | | | | | | | | | | | | | | | | | | | | | | |
| Connected | | | | | | | | | | | | | | | | | | | | | | | | |
| Devices | | | | | | | | | | | | | | | | | | | | | | | | |
| Customer | | | | | | | | | | | | | | | | | | | | | | | | |
| Additions | | | | | | | | | | | | | | | | | | | | | | | | |
| (000)7 | | | | | | | | | | | | | | | | | | | | | | | | |
+---------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+---------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+---------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| In-Region | | | | | | | | | | | | | | | | | | | | | | | | |
| Wireline | | | | | | | | | | | | | | | | | | | | | | | | |
| 1 | | | | | | | | | | | | | | | | | | | | | | | | |
+---------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| Total | | | | | | | | | | | | | | | | | | | | | | | | |
| Consumer | | | | | | | | | | | | | | | | | | | | | | | | |
| Revenue | | | | | | | | | | | | | | | | | | | | | | | | |
| Connections | | | | | | | | | | | | | | | | | | | | | | | | |
| (000) | | | | | | | | | | | | | | | | | | | | | | | | |
+---------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| Retail | | | | | | | | | | | | | | | 24,908 | | | | 28,098 | | | | -11.4 | % |
| Consumer | | | | | | | | | | | | | | | | | | | | | | | | |
| Voice | | | | | | | | | | | | | | | | | | | | | | | | |
| Connections | | | | | | | | | | | | | | | | | | | | | | | | |
| 2 | | | | | | | | | | | | | | | | | | | | | | | | |
+---------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| Consumer | | | | | | | | | | | | | | | 14,092 | | | | 13,550 | | | | 4.0 | % |
| Wired | | | | | | | | | | | | | | | | | | | | | | | | |
| Broadband | | | | | | | | | | | | | | | | | | | | | | | | |
| Connections | | | | | | | | | | | | | | | | | | | | | | | | |
| 3 | | | | | | | | | | | | | | | | | | | | | | | | |
+---------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| Video | | | | | | | | | | | | | | | | | | | | | | | | |
| Connections: | | | | | | | | | | | | | | | | | | | | | | | | |
| 4 | | | | | | | | | | | | | | | | | | | | | | | | |
+---------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | 1,994 | | | | 2,195 | | | | -9.2 | % |
| Satellite | | | | | | | | | | | | | | | | | | | | | | | | |
| Connections | | | | | | | | | | | | | | | | | | | | | | | | |
+---------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | 2,739 | | | | 1,816 | | | | 50.8 | % |
| U-verse | | | | | | | | | | | | | | | | | | | | | | | | |
| Video | | | | | | | | | | | | | | | | | | | | | | | | |
| Connections | | | | | | | | | | | | | | | | | | | | | | | | |
+---------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | 43,733 | | | | 45,659 | | | | -4.2 | % |
| Total | | | | | | | | | | | | | | | | | | | | | | | | |
| Consumer | | | | | | | | | | | | | | | | | | | | | | | | |
| Revenue | | | | | | | | | | | | | | | | | | | | | | | | |
| Connections | | | | | | | | | | | | | | | | | | | | | | | | |
| (000) | | | | | | | | | | | | | | | | | | | | | | | | |
+---------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+---------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | | (529 | ) | | | (629 | ) | | | 15.9 | % | | | (1,554 | ) | | | (1,384 | ) | | | -12.3 | % |
| Net | | | | | | | | | | | | | | | | | | | | | | | | |
| Consumer | | | | | | | | | | | | | | | | | | | | | | | | |
| Revenue | | | | | | | | | | | | | | | | | | | | | | | | |
| Connection | | | | | | | | | | | | | | | | | | | | | | | | |
| Changes | | | | | | | | | | | | | | | | | | | | | | | | |
| (000) | | | | | | | | | | | | | | | | | | | | | | | | |
+---------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+---------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| Broadband | | | | | | | | | | | | | | | | | | | | | | | | |
| and Video | | | | | | | | | | | | | | | | | | | | | | | | |
+---------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| Total | | | | | | | | | | | | | | | 17,562 | | | | 17,083 | | | | 2.8 | % |
| Broadband | | | | | | | | | | | | | | | | | | | | | | | | |
| Connections | | | | | | | | | | | | | | | | | | | | | | | | |
| (000) 5 | | | | | | | | | | | | | | | | | | | | | | | | |
+---------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| Net | | | 123 | | | | 138 | | | | -10.9 | % | | | 308 | | | | 818 | | | | -62.3 | % |
| Broadband | | | | | | | | | | | | | | | | | | | | | | | | |
| Connection | | | | | | | | | | | | | | | | | | | | | | | | |
| Changes | | | | | | | | | | | | | | | | | | | | | | | | |
| (000) 5 | | | | | | | | | | | | | | | | | | | | | | | | |
+---------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| Total | | | | | | | | | | | | | | | 4,735 | | | | 4,012 | | | | 18.0 | % |
| Video | | | | | | | | | | | | | | | | | | | | | | | | |
| Connections | | | | | | | | | | | | | | | | | | | | | | | | |
| (000) 4 | | | | | | | | | | | | | | | | | | | | | | | | |
+---------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| Net | | | 177 | | | | 225 | | | | -21.3 | % | | | 496 | | | | 777 | | | | -36.2 | % |
| Video | | | | | | | | | | | | | | | | | | | | | | | | |
| Connection | | | | | | | | | | | | | | | | | | | | | | | | |
| Changes | | | | | | | | | | | | | | | | | | | | | | | | |
| (000) 4 | | | | | | | | | | | | | | | | | | | | | | | | |
+---------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+---------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| AT&T | | | | | | | | | | | | | | | | | | | | | | | | |
| Inc. | | | | | | | | | | | | | | | | | | | | | | | | |
+---------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| Construction | | | | | | | | | | | | | | | | | | | | | | | | |
| and capital | | | | | | | | | | | | | | | | | | | | | | | | |
| expenditures | | | | | | | | | | | | | | | | | | | | | | | | |
+---------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | $ | 5,314 | | | $ | 4,017 | | | | 32.3 | % | | $ | 13,170 | | | $ | 11,034 | | | | 19.4 | % |
| Capital | | | | | | | | | | | | | | | | | | | | | | | | |
| expenditures | | | | | | | | | | | | | | | | | | | | | | | | |
+---------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | $ | 198 | | | $ | 185 | | | | 7.0 | % | | $ | 577 | | | $ | 553 | | | | 4.3 | % |
| Interest | | | | | | | | | | | | | | | | | | | | | | | | |
| during | | | | | | | | | | | | | | | | | | | | | | | | |
| construction | | | | | | | | | | | | | | | | | | | | | | | | |
+---------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| Dividends | | $ | 0.4200 | | | $ | 0.4100 | | | | 2.4 | % | | $ | 1.2600 | | | $ | 1.2300 | | | | 2.4 | % |
| Declared | | | | | | | | | | | | | | | | | | | | | | | | |
| per Share | | | | | | | | | | | | | | | | | | | | | | | | |
+---------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| End of | | | | | | | | | | | | | | | 5,910 | | | | 5,901 | | | | 0.2 | % |
| Period | | | | | | | | | | | | | | | | | | | | | | | | |
| Common | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares | | | | | | | | | | | | | | | | | | | | | | | | |
| Outstanding | | | | | | | | | | | | | | | | | | | | | | | | |
| (000,000) | | | | | | | | | | | | | | | | | | | | | | | | |
+---------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| Debt | | | | | | | | | | | | | | | 37.8 | % | | | 42.1 | % | | -430 BP |
| Ratio | | | | | | | | | | | | | | | | | | | | | | |
| 6 | | | | | | | | | | | | | | | | | | | | | | |
+---------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------------------------+
| Total | | | | | | | | | | | | | | | 267,720 | | | | 284,970 | | | | -6.1 | % |
| Employees | | | | | | | | | | | | | | | | | | | | | | | | |
+---------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+---------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+---------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+--------+--------+--------+--------+
+--------+---------------+
| 1 | In-region |
| | wireline |
| | represents |
| | access |
| | lines |
| | served by |
| | AT&T's |
| | incumbent |
| | local |
| | exchange |
| | companies. |
+--------+---------------+
| 2 | Includes |
| | consumer |
| | U-verse |
| | Voice |
| | over IP |
| | connections |
| | of 1,494 as |
| | of |
| | September |
| | 30, 2010. |
+--------+---------------+
| 3 | Consumer |
| | Wired |
| | Broadband |
| | Connections |
| | include DSL |
| | lines, |
| | U-verse |
| | High Speed |
| | Internet |
| | access and |
| | satellite |
| | broadband. |
+--------+---------------+
| 4 | Video |
| | connections |
| | include |
| | sales under |
| | agency |
| | agreements |
| | with |
| | EchoStar |
| | and DirecTV |
| | customers |
| | and U-verse |
| | connections. |
+--------+---------------+
| 5 | Total |
| | broadband |
| | connections |
| | include DSL |
| | lines, |
| | U-verse |
| | High Speed |
| | Internet |
| | access, |
| | satellite |
| | broadband |
| | and 3G |
| | LaptopConnect |
| | cards. |
+--------+---------------+
| 6 | Total |
| | long-term |
| | debt plus |
| | debt |
| | maturing |
| | within |
| | one year |
| | divided |
| | by total |
| | debt plus |
| | total |
| | stockholders' |
| | equity. |
+--------+---------------+
| 7 | Prior |
| | year |
| | amounts |
| | restated |
| | to |
| | conform |
| | to |
| | current |
| | period |
| | reporting |
| | methodology. |
+--------+---------------+
| | |
| | Note: |
| | For |
| | the |
| | end of |
| | 3Q10, |
| | total |
| | switched |
| | access |
| | lines |
| | were |
| | 45,108, |
| | retail |
| | business |
| | switched |
| | access |
| | lines |
| | totaled |
| | 19,089, |
| | and |
| | wholesale |
| | and coin |
| | switched |
| | access |
| | lines |
| | totaled |
| | 2,605. |
| | These |
| | include |
| | 1,706 |
| | retail |
| | business |
| | and 98 |
| | wholesale |
| | lines |
| | that are |
| | used |
| | solely by |
| | AT&T or |
| | our |
| | subsidiaries. |
+--------+---------------+
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Financial | | | | | | | | | | | | | | | |
| Data | | | | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| | | | | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| AT&T | | | | | | | | | | | | | | | |
| Inc. | | | | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| Non-GAAP | | | | | | | | | | | | | | | |
| Wireless | | | | | | | | | | | | | | | |
| Reconciliation | | | | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| Wireless Segment OIBDA | | | | | | | | | | | | | |
+-------------------------------------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| AT&T | | | | | | | | | | | | | | | |
| Inc. | | | | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| Dollars | | | | | | | | | | | | | | | |
| in | | | | | | | | | | | | | | | |
| millions | | | | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| Unaudited | | | | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| | | Three Months Ended |
+----------------+--------+--------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| | | 9/30/2009 | | | 12/31/2009 | | | 3/31/2010 | | | 6/30/2010 | | | 9/30/2010 | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| | | | | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| Service | | $ | 12,372 | | | $ | 12,585 | | | $ | 12,850 | | | $ | 13,186 | | | $ | 13,675 | |
| Revenues | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Equipment | | | 1,255 | | | | 1,232 | | | | 1,047 | | | | 1,056 | | | | 1,505 | |
| Revenues | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 13,627 | | | | 13,817 | | | | 13,897 | | | | 14,242 | | | | 15,180 | |
| Total | | | | | | | | | | | | | | | | | | | | |
| Operating | | | | | | | | | | | | | | | | | | | | |
| Revenues | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Operating | | | | | | | | | | | | | | | | | | | | |
| Expenses | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Operations | | | 8,645 | | | | 8,701 | | | | 8,183 | | | | 8,562 | | | | 10,040 | |
| and | | | | | | | | | | | | | | | | | | | | |
| support | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Depreciation | | | 1,490 | | | | 1,550 | | | | 1,558 | | | | 1,578 | | | | 1,640 | |
| and | | | | | | | | | | | | | | | | | | | | |
| amortization | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 10,135 | | | | 10,251 | | | | 9,741 | | | | 10,140 | | | | 11,680 | |
| Total | | | | | | | | | | | | | | | | | | | | |
| Operating | | | | | | | | | | | | | | | | | | | | |
| Expenses | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Operating | | | 3,492 | | | | 3,566 | | | | 4,156 | | | | 4,102 | | | | 3,500 | |
| Income | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Plus: | | | 1,490 | | | | 1,550 | | | | 1,558 | | | | 1,578 | | | | 1,640 | |
| Depreciation | | | | | | | | | | | | | | | | | | | | |
| and | | | | | | | | | | | | | | | | | | | | |
| amortization | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| OIBDA | | | 4,982 | | | | 5,116 | | | | 5,714 | | | | 5,680 | | | | 5,140 | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| OIBDA | | | 40.3 | % | | | 40.7 | % | | | 44.5 | % | | | 43.1 | % | | | 37.6 | % |
| as a % | | | | | | | | | | | | | | | | | | | | |
| of | | | | | | | | | | | | | | | | | | | | |
| Service | | | | | | | | | | | | | | | | | | | | |
| Revenue | | | | | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
OIBDA is defined as operating income (loss) before depreciation and
amortization. EBITDA is defined as Earnings Before Interest, Taxes, Depreciation
and Amortization. This term is often used as a substitute for OIBDA. OIBDA
differs from segment operating income (loss), as calculated in accordance with
generally accepted accounting principles (GAAP), in that it excludes
depreciation and amortization. OIBDA 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. OIBDA is not presented
as an alternative measure of operating results or cash flows from operations, as
determined in accordance with GAAP. Our calculation of OIBDA, as presented, may
differ from similarly titled measures reported by other companies.
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+
| Financial | | | | | | | | | | | | |
| Data | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+------------------+--------+--------+------------------+--------+
| | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+------------------+--------+--------+------------------+--------+
| AT&T | | | | | | | | | | | | |
| Inc. | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+------------------+--------+--------+------------------+--------+
| Non-GAAP | | | | | | | | | | | | |
| Financial | | | | | | | | | | | | |
| Reconciliation | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+------------------+--------+--------+------------------+--------+
| Free | | | | | | | | | | | | |
| Cash | | | | | | | | | | | | |
| Flow | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+------------------+--------+--------+------------------+--------+
| AT&T | | | | | | | | | | | | |
| Inc. | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+------------------+--------+--------+------------------+--------+
| Dollars | | | | | | | | | | | | |
| in | | | | | | | | | | | | |
| Millions | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+------------------+--------+--------+------------------+--------+
| Unaudited | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+------------------+--------+--------+------------------+--------+
| | | Three Months Ended | | | Nine Months Ended | |
+----------------+--------+-----------------------------------------------------+--------+--------+-------------------------------------------------------+--------+
| | | September 30, | | | September 30, | |
+----------------+--------+-----------------------------------------------------+--------+--------+-------------------------------------------------------+--------+
| | | 2009 | | | 2010 | | | 2009 | | | 2010 | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+------------------+--------+--------+------------------+--------+
| | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+------------------+--------+--------+------------------+--------+
| Net | | $ | 9,672 | | | $ | 9,540 | | | $ | 25,444 | | | $ | 25,350 | |
| cash | | | | | | | | | | | | | | | | |
| provided | | | | | | | | | | | | | | | | |
| by | | | | | | | | | | | | | | | | |
| operating | | | | | | | | | | | | | | | | |
| activities | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+
| | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+
| Less: | | | (4,202 | ) | | | (5,512 | ) | | | (11,587 | ) | | | (13,747 | ) |
| Construction | | | | | | | | | | | | | | | | |
| and capital | | | | | | | | | | | | | | | | |
| expenditures | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+
| | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+
| Free | | $ | 5,470 | | | $ | 4,028 | | | $ | 13,857 | | | $ | 11,603 | |
| Cash | | | | | | | | | | | | | | | | |
| Flow | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+---------+--------+--------+--------+---------+--------+
Free cash flow is defined as cash from operations minus capital expenditures. We
believe these metrics provide useful information to our investors because
management regularly reviews free cash flow as an important indicator of how
much cash is 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.
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Free | | | | | | | | | | | | | | | | | | |
| Cash | | | | | | | | | | | | | | | | | | |
| Flow | | | | | | | | | | | | | | | | | | |
| After | | | | | | | | | | | | | | | | | | |
| Dividends | | | | | | | | | | | | | | | | | | |
+--------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| AT&T | | | | | | | | | | | | | | | | | | |
| Inc. | | | | | | | | | | | | | | | | | | |
+--------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| Dollars | | | | | | | | | | | | | | | | | | |
| in | | | | | | | | | | | | | | | | | | |
| Millions | | | | | | | | | | | | | | | | | | |
+--------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| Unaudited | | | | | | | | | | | | | | | | | | |
+--------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| | | Three Months Ended |
+--------------+--------+--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| | | 6/30/2009 | | | 9/30/2009 | | | 12/31/2009 | | | 3/31/2010 | | | 6/30/2010 | | | 9/30/2010 | |
+--------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| | | | | | | | | | | | | | | | | | | |
+--------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| Net | | $ | 7,862 | | | $ | 9,672 | | | $ | 8,964 | | | $ | 7,237 | | | $ | 8,573 | | | $ | 9,540 | |
| cash | | | | | | | | | | | | | | | | | | | | | | | | |
| provided | | | | | | | | | | | | | | | | | | | | | | | | |
| by | | | | | | | | | | | | | | | | | | | | | | | | |
| operating | | | | | | | | | | | | | | | | | | | | | | | | |
| activities | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Less: | | | (4,037 | ) | | | (4,202 | ) | | | (5,707 | ) | | | (3,331 | ) | | | (4,904 | ) | | | (5,512 | ) |
| Construction | | | | | | | | | | | | | | | | | | | | | | | | |
| and capital | | | | | | | | | | | | | | | | | | | | | | | | |
| expenditures | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Free | | | 3,825 | | | | 5,470 | | | | 3,257 | | | | 3,906 | | | | 3,669 | | | | 4,028 | |
| Cash | | | | | | | | | | | | | | | | | | | | | | | | |
| Flow | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Less: | | | (2,418 | ) | | | (2,418 | ) | | | (2,418 | ) | | | (2,479 | ) | | | (2,481 | ) | | | (2,476 | ) |
| Dividends | | | | | | | | | | | | | | | | | | | | | | | | |
| paid | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Free | | $ | 1,407 | | | $ | 3,052 | | | $ | 839 | | | $ | 1,427 | | | $ | 1,188 | | | $ | 1,552 | |
| Cash | | | | | | | | | | | | | | | | | | | | | | | | |
| Flow | | | | | | | | | | | | | | | | | | | | | | | | |
| After | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends | | | | | | | | | | | | | | | | | | | | | | | | |
+--------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Financial | | | | | | | | | | | | |
| Data | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| AT&T | | | | | | | | | | | | |
| Inc. | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| Non-GAAP | | | | | | | | | | | | |
| Financial | | | | | | | | | | | | |
| Reconciliation | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| Annualized | | | | | | | | | | | | |
| Net | | | | | | | | | | | | |
| Debt-to-EBITDA | | | | | | | | | | | | |
| Ratio | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| AT&T | | | | | | | | | | | | |
| Inc. | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| Dollars | | | | | | | | | | | | |
| in | | | | | | | | | | | | |
| millions | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| Unaudited | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| | | Three Months Ended | | | | |
+----------------+--------+-----------------------------------------------------------------------------------------+--------+--------+-----------------+--------+
| | | 3/31/2010 | | | 6/30/2010 | | | 9/30/2010 | | | 2010 YTD | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| | | | | | | | | | | | | |
+----------------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+--------+-----------------+--------+
| | | $ | 30,530 | | | $ | 30,808 | | | $ | 31,581 | | | $ | 92,919 | |
| Reported | | | | | | | | | | | | | | | | |
| Consolidated | | | | | | | | | | | | | | | | |
| Revenues | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | 24,523 | | | | 24,694 | | | | 26,117 | | | | 75,334 | |
| Total | | | | | | | | | | | | | | | | |
| Operating | | | | | | | | | | | | | | | | |
| Expenses | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Total | | | 6,007 | | | | 6,114 | | | | 5,464 | | | | 17,585 | |
| Operating | | | | | | | | | | | | | | | | |
| Income | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Add | | | 4,800 | | | | 4,838 | | | | 4,891 | | | | 14,529 | |
| Back | | | | | | | | | | | | | | | | |
| Depreciation | | | | | | | | | | | | | | | | |
| and | | | | | | | | | | | | | | | | |
| Amortization | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Total | | | 10,807 | | | | 10,952 | | | | 10,355 | | | | 32,114 | |
| Consolidated | | | | | | | | | | | | | | | | |
| EBITDA | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Annualized | | | | | | | | | | | | | | | 42,819 | |
| Consolidated | | | | | | | | | | | | | | | | |
| EBITDA * | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | 6,426 | |
| End-of-period | | | | | | | | | | | | | | | | |
| current debt | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | 62,540 | |
| End-of-period | | | | | | | | | | | | | | | | |
| long-term | | | | | | | | | | | | | | | | |
| debt | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Total | | | | | | | | | | | | | | | 68,966 | |
| End-of-Period | | | | | | | | | | | | | | | | |
| Debt | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | (248 | ) |
| (Premiums) | | | | | | | | | | | | | | | | |
| Discounts | | | | | | | | | | | | | | | | |
| on | | | | | | | | | | | | | | | | |
| long-term | | | | | | | | | | | | | | | | |
| debt | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Normalized | | | | | | | | | | | | | | | 68,718 | |
| Debt | | | | | | | | | | | | | | | | |
| Balance | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Less | | | | | | | | | | | | | | | 3,246 | |
| Cash | | | | | | | | | | | | | | | | |
| and | | | | | | | | | | | | | | | | |
| Cash | | | | | | | | | | | | | | | | |
| Equivalents | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Normalized | | | | | | | | | | | | | | | 65,472 | |
| Net Debt | | | | | | | | | | | | | | | | |
| Balance | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
| Annualized | | | | | | | | | | | | | | | 1.5 | |
| Net | | | | | | | | | | | | | | | | |
| Debt-to-EBITDA | | | | | | | | | | | | | | | | |
| Ratio | | | | | | | | | | | | | | | | |
+----------------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+
*EBITDA is annualized by dividing YTD EBITDA by YTD number of quarters and
multiplying by 4.
EXHIBIT 99.3
OIBDA DISCUSSION
OIBDA is defined as operating income (loss) before depreciation and
amortization. OIBDA margin is calculated as OIBDA divided by service revenues.
OIBDA differs from Segment Operating Income (Loss), as calculated in accordance
with GAAP, in that it excludes depreciation and amortization. OIBDA 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.
OIBDA is not presented as an alternative measure of operating results or cash
flows from operations, as determined in accordance with generally accepted
accounting principles. Our calculation of OIBDA, as presented, may differ from
similarly titled measures reported by other companies.
We believe these measures are relevant and useful information to our investors
as they are part of AT&T Mobility's internal management reporting and planning
processes and are important metrics that AT&T Mobility's management uses to
evaluate the operating performance of its regional operations. These measures
are used by management as a gauge of AT&T Mobility's success in acquiring,
retaining and servicing subscribers because we believe these measures reflect
AT&T Mobility's ability to generate and grow subscriber revenues while providing
a high level of customer service in a cost-effective manner. Management also
uses these measures as a method of comparing AT&T Mobility's performance with
that of many of its competitors. The financial and operating metrics which
affect OIBDA include the key revenue and expense drivers for which AT&T
Mobility's operating managers are responsible and upon which we evaluate their
performance.
OIBDA 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. OIBDA excludes other, net, minority interest in earnings of
consolidated entities and equity in net income (loss) of affiliates, as these do
not reflect the operating results of AT&T Mobility's subscriber base and its
national footprint that AT&T Mobility utilizes to obtain and service its
customers. Equity in net income (loss) of affiliates represents AT&T Mobility's
proportionate share of the net income (loss) of affiliates in which it exercises
significant influence, but does not control. As AT&T Mobility does not control
these entities, our management excludes these results when evaluating the
performance of our primary operations. OIBDA excludes interest expense and the
provision for income taxes. Excluding these items eliminates the expenses
associated with its capitalization and tax structures. Finally, OIBDA excludes
depreciation and amortization, in order to eliminate the impact of capital
investments.
We believe OIBDA as a percentage of service revenues to be a more relevant
measure of AT&T Mobility's operating margin than OIBDA as a percentage of total
revenue. AT&T Mobility generally subsidizes a portion of its handset sales, all
of which are recognized in the period in which AT&T Mobility sells the handset.
This results in a disproportionate impact on its margin in that period.
Management views this equipment subsidy as a cost to acquire or retain a
subscriber, which is recovered through the ongoing service revenue that is
generated by the subscriber. AT&T Mobility also uses service revenues to
calculate margin to facilitate comparison, both internally and externally with
its competitors, as they calculate their margins using services revenue as well.
There are material limitations to using these non-GAAP financial measures. OIBDA
and OIBDA margin, as we have defined them, may not be comparable to similarly
titled measures reported by other companies. Furthermore, these performance
measures do not take into account certain significant items, including
depreciation and amortization, interest expense, tax expense and equity in net
income (loss) of affiliates, which directly affect AT&T Mobility's net income.
Management compensates for these limitations by carefully analyzing how its
competitors present performance measures that are similar in nature to OIBDA as
we present it, and considering the economic effect of the excluded expense items
independently as well as in connection with its analysis of net income as
calculated in accordance with GAAP. OIBDA and OIBDA margin should be considered
in addition to, but not as a substitute for, other measures of financial
performance reported in accordance with GAAP.
FREE CASH FLOW DISCUSSION
Free cash flow is defined as cash from operations minus capital expenditures.
Free cash flow after dividends is defined as cash from operations minus capital
expenditures and dividends. Free cash flow yield is defined as cash from
continuing operations less capital expenditures as a percentage of market
capitalization computed on the last trading day of the quarter. Market
capitalization is computed by multiplying the end of period stock price by the
end of period shares outstanding. We believe these metrics provide useful
information to our investors because management monthly reviews free cash flow
as an important indicator of how much cash is generated by normal business
operations, including capital expenditures, and makes decisions based on it.
Management also views it as a measure of cash available to pay debt and return
cash to shareowners.
This information is provided by RNS
The company news service from the London Stock Exchange
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