Form 8-K AT&T INC. For: Oct 22

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 22, 2015

(Exact Name of Registrant as Specified in Charter)

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):

 ☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 ☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 ☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240-14d-2(b))

 ☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01  Other Events.

Throughout this document, AT&T Inc. is referred to as "we" or "AT&T." We are a holding company whose subsidiaries and affiliates operate in the communications and digital entertainment services industry. Our subsidiaries and affiliates provide services and equipment that deliver traditional telephony services as well as video and broadband services both domestically and internationally.

Overview

We announced on October 22, 2015 that third-quarter 2015 net income attributable to AT&T totaled $3.0 billion, or $0.50 per diluted share, compared to net income attributable to AT&T of $3.1 billion, or $0.60 per diluted share, in the third quarter of 2014. Our third-quarter 2015 results include the operations of DIRECTV following the July 24, 2015 acquisition.

Third-quarter 2015 revenues were $39.1 billion, up 18.6 percent from the third-quarter 2014. Third quarter revenues reflect increased revenues primarily from our acquisition of DIRECTV. Compared with results for the third quarter of 2014, operating expenses were $33.2 billion versus $27.4 billion primarily reflecting recent acquisitions; operating income was $5.9 billion, up from $5.6 billion; and AT&T's operating income margin was 15.2 percent, compared to 17.0 percent. Third-quarter 2015 cash from operating activities was $10.8 billion, up from $8.7 billion in the year-ago quarter due primarily to the acquisition of DIRECTV and the timing of working capital payments.

Many of our products, including AT&T Mobility and AT&T U-verse^® (U-verse), are offered to subscribers in multiple segments. Accordingly, to aid in understanding subscriber trends, we are presenting an overall discussion of these customer metrics. We reported a net gain of 2,513,000 domestic wireless subscribers in the third quarter of 2015, bringing that customer base to approximately 126.4 million at September 30, 2015, compared to 118.7 million at September 30, 2014. During the third quarter, for our domestic wireless operations, net adds for connected devices were 1,602,000, including 1,000,000 million connected cars. Prepaid subscriber net adds were 466,000, with gains in both Cricket and GoPhone subscribers, postpaid subscriber net adds were 289,000 and reseller net adds were 156,000. Branded net adds (combined postpaid and prepaid) were 755,000 in the third quarter of 2015 reflecting gains in prepaid smartphones. Total postpaid tablet and computing device net adds were 622,000 in the third quarter of 2015.

In the third quarter of 2015, an increasing percentage of domestic wireless subscribers have chosen to move to our simple pricing and no-device-subsidy service plans (referred to as Mobile Share and Mobile Share Value, collectively referred to as "Mobile Share Plans"). At September 30, 2015, Mobile Share Plans represented almost 60 million domestic wireless connections. About 66 percent of our domestic wireless postpaid smartphone base is on no-device-subsidy Mobile Share Value plans. At the end of the quarter, 50.4 million of postpaid smartphone subscribers are on usage-based data plans, compared to 46.1 million a year ago.

For U.S.-based customers, we offer an equipment installment plan (AT&T Next). Sales under AT&T Next continued to increase during the third quarter, with nearly 71 percent of all postpaid smartphone gross adds and upgrades taking Next, compared to 68 percent in the second quarter of 2015, 65 percent in the first quarter of 2015 and 58 percent in the fourth quarter of 2014. Combined with bring-your-own-device (BYOD) gross adds of 510,000 during the third quarter, 80 percent of smartphone transactions in the quarter were no-subsidy. During the third quarter of 2015, we sold 4.1 million smartphones under our AT&T Next program. At September 30, 2015, more than 40 percent of the postpaid smartphone base is on AT&T Next.

With our July 24, 2015, acquisition of DIRECTV, we added 32.2 million subscribers of DIRECTV's video services, which includes domestic and international subscribers and reflects our methodology used to count commercial subscribers. At September 30, 2015, we had 38.0 million video subscribers compared with 6.1 million at September 30, 2014.

Our total broadband connections were 15.8 million at September 30, 2015 and 16.5 million at September 30, 2014. During the third quarter, we added 192,000 U-verse High Speed Internet subscribers, for a total of 13.1 million at September 30, 2015. More than 90 percent of our broadband subscribers who are IP-eligible have U-verse High Speed Internet. Total broadband subscribers declined by 129,000 in the quarter due in part to fewer U-verse sales promotions.

At September 30, 2015, our total switched access lines were 17.4 million compared with 21.5 million at September 30, 2014. The number of U-verse voice connections (which use VoIP technology and therefore are not included in the access line total) increased by 62,000 in the quarter to reach 5.4 million at September 30, 2015 compared to 4.8 million at September 30, 2014.

Segment Summary

Business Solutions

Revenues from our Business Solutions (ABS) segment for the third quarter of 2015 were $17.7 billion, up 1.2 percent versus the year-ago quarter driven by mobility revenues and continued growth in strategic business services, partially offset by continued declines in our legacy voice and data services and foreign exchange pressures. Third-quarter 2015 ABS operating expenses totaled $13.4 billion, down 1.7 percent versus the third quarter of 2014, largely due to lower employee and commission expenses. The ABS operating margin was 24.3 percent, compared to 22.1 percent in the year-earlier quarter with wireless and IP revenue growth and cost efficiencies offsetting declines in legacy services.

We had approximately 71.6 million business wireless subscribers at September 30, 2015 compared to 62.6 million at September 30, 2014. During the third quarter of 2015, business wireless net adds for connected devices were 1,602,000 and postpaid net adds were 265,000. Postpaid business wireless subscriber churn was 1.05 percent, compared to 0.84 percent in the year-ago quarter.

During the third quarter of 2015, we added 20,000 high-speed Internet business subscribers, bringing total business IP broadband to 891,000 subscribers. Total business broadband had a loss of 23,000 in the quarter.

Entertainment and Internet Services

Our Entertainment and Internet Services (EIS) segment includes the results of the U.S. satellite-based operations acquired in our July 2015 acquisition of DIRECTV as well as broadband and wired voice services to residential customers in the U.S. EIS revenues for the third-quarter of 2015 were $10.9 billion, nearly double the year-ago quarter due to the acquisition of DIRECTV as well as strong growth in consumer IP broadband and video, which more than offset lower revenues from legacy voice and data products. Third-quarter 2015 EIS operating expenses totaled $9.8 billion compared to $5.9 billion in the third quarter of 2014, largely due to the acquisition of DIRECTV. The EIS operating margin was 9.4 percent, compared to (6.1) percent in the year-earlier quarter with satellite and IP revenue growth and cost efficiencies offsetting programming content cost pressure and declines in legacy services.

At September 31, 2015, EIS had approximately 52.6 million revenue connections, compared to 34.7 million at September 31, 2015, which included:

·

Approximately 25.4 million video connections at September 30, 2015 compared to 5.8 million at September 30, 2014. DIRECTV's satellite subscribers as of the July 24, 2015 acquisition date was 19.5 million. During the third quarter, we added 26,000 satellite subscribers; however, U-verse subscribers declined 92,000 as we focused on profitability and emphasized higher-margin satellite sales.

·

Approximately 14.3 million broadband connections at September 30, 2015 compared to 14.5 million at September 30, 2014. During the third quarter, we added 172,000 U-verse High Speed Internet subscribers, for a total of 12.2 million at September 30, 2015. Total broadband subscribers declined by 106,000 in the quarter due in part to fewer U-verse sales promotions.

·	Approximately 12.9 million wired voice connections at September 30, 2015 compared to 14.4 million at September 30, 2014. Voice connections include switched access lines and VoIP connections.

Consumer Mobility

Revenues from our Consumer Mobility segment, which consist of consumer, wholesale and resale subscribers located in the U.S., for the third-quarter of 2015 were $8.8 billion, down 4.6 percent versus the year-ago quarter, reflecting declines in postpaid service revenues due to the success of Mobile Share Value plans and migrations of customers to our ABS segment (discussed below), offset by higher prepaid service revenues and an increase in equipment revenues. Third-quarter 2015 Consumer Mobility operating expenses totaled $6.0 billion, down 9.6 percent versus the third quarter of 2014. The Consumer Mobility operating margin was 31.2 percent, compared to 27.4 percent in the year-earlier quarter with lower volumes and cost efficiencies more than offsetting the declines from Mobile Share Value pressure.

We had approximately 54.8 million Consumer Mobility subscribers at September 30, 2015 compared to 56.1 million at September 30, 2014. During the third quarter of 2015, prepaid net adds were 466,000, reseller net adds were 149,000 and consumer postpaid net adds were 23,000. Our business wireless offerings allow for individual subscribers to purchase wireless services through employer-sponsored plans for a reduced price. The migration of these subscribers to the ABS segment negatively impacted consumer postpaid subscriber and service revenues growth.

Total customer churn of Consumer Mobility subscribers was 1.90 percent versus 2.03 percent in the third quarter of 2014, reflecting improvements in prepaid churn. Consumer Mobility postpaid churn was 1.33 percent, compared to 1.20 percent in the year-ago quarter.

International

Our International segment consists of the Latin American operations acquired in our July 2015 acquisition of DIRECTV as well as the Mexican wireless operations acquired earlier in 2015. Third quarter 2015 operating revenues were $1.5 billion, with $945 million attributable to video services in Latin America and $581 million of wireless revenues in Mexico. DIRECTV Latin America revenues reflect foreign currency exchange rates, including our move to the Sistema Marginal de Divisas (SIMADI) rate in Venezuela. Operating expenses were $1.6 billion and operating loss was $87 million.

At September 30, 2015, we had approximately 8.2 million wireless subscribers in Mexico and 12.5 million video connections in Latin America, including 5.5 million in Brazil. During the third quarter of 2015, our Mexico wireless business had a net loss of 231,000 subscribers and our Latin America operations had a net loss of 113,000 video connections.

Supplemental Discussion

As a supplemental discussion of our operating results, for comparison purposes, we are providing a view of our combined AT&T Mobility operations. AT&T Mobility revenues for the third-quarter of 2015 were $18.3 billion, essentially flat versus the third quarter of 2015. Third-quarter 2015 operating expenses totaled $12.9 billion, down 5.0 percent versus with the third quarter of 2014 and AT&T Mobility's operating income margin was 29.6 percent compared to 25.9 percent in the year-ago quarter reflecting strong adoption of AT&T Next, BYOD customers, lower smartphone gross adds and strong operational efficiencies.

For the quarter ended September 30, 2015, postpaid phone-only ARPU decreased 2.6 percent versus the year-earlier quarter and 0.7 percent sequentially. Postpaid phone-only ARPU plus AT&T Next increased 4.9 percent versus the year earlier quarter and 0.8 percent sequentially.

Postpaid churn was 1.16 percent, compared to 0.99 percent in the year-ago quarter and 1.01 percent in the second quarter of 2015. Total customer churn was 1.33 percent versus 1.36 percent in the third quarter of 2014 and 1.31 percent in the second quarter of 2015.

CAUTIONARY LANGUAGE CONCERNING FORWARD-LOOKING STATEMENTS

Information set forth in this filing contains financial estimates and other forward-looking statements that are subject to risks and uncertainties. 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 filing based on new information or otherwise.

Item 9.01 Financial Statements and Exhibits.

The following exhibits are filed as part of this report:

(d)   Exhibits

99.1  AT&T Inc. selected financial statements and operating data.

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.

Financial Data
AT&T Inc.
Consolidated Statements of Income
Dollars in millions except per share amounts
Unaudited		Three Months Ended												Nine Months Ended
		9/30/2015				9/30/2014				% Chg				9/30/2015				9/30/2014				% Chg
Operating Revenues
Service		$	35,625			$	29,790				19.6	%		$	94,128			$	89,122				5.6	%
Equipment			3,466				3,167				9.4	%			10,554				8,886				18.8	%
Total Operating Revenues			39,091				32,957				18.6	%			104,682				98,008				6.8	%
Operating Expenses
Cost of services and sales
Equipment			4,313				4,432				-2.7	%			13,035				12,503				4.3	%
Broadcast, programming and operations			4,081				1,038				-				6,351				3,019				-
Other cost of services and sales (exclusive of depreciation            and amortization shown separately below)			9,402				8,866				-6.0	%			27,969				26,167				-6.9	%
Selling, general and administrative			9,107				8,475				7.5	%			24,535				24,932				-1.6	%
Depreciation and amortization			6,265				4,539				38.0	%			15,539				13,706				13.4	%
Total Operating Expenses			33,168				27,350				21.3	%			87,429				80,327				8.8	%
Operating Income			5,923				5,607				5.6	%			17,253				17,681				-2.4	%
Interest Expense			1,146				1,016				12.8	%			2,977				2,757				8.0	%
Equity in Net Income (Loss) of Affiliates			15				(2	)			-				48				188				-74.5	%
Other (Expense) Income - Net			(57	)			42				-				61				1,456				-95.8	%
Income Before Income Taxes			4,735				4,631				2.2	%			14,385				16,568				-13.2	%
Income Tax Expense			1,657				1,444				14.8	%			4,784				5,914				-19.1	%
Net Income			3,078				3,187				-3.4	%			9,601				10,654				-9.9	%
Less: Net Income Attributable to Noncontrolling Interest			(84	)			(57	)			-47.4	%			(262	)			(213	)			-23.0	%
Net Income Attributable to AT&T		$	2,994			$	3,130				-4.3	%		$	9,339			$	10,441				-10.6	%
Basic Earnings Per Share Attributable to AT&T		$	0.50			$	0.60				-16.7	%		$	1.71			$	2.00				-14.5	%
Weighted Average Common      Shares Outstanding (000,000)			5,924				5,198				14.0	%			5,447				5,208				4.6	%
Diluted Earnings Per Share Attributable to AT&T		$	0.50			$	0.60				-16.7	%		$	1.71			$	2.00				-14.5	%
Weighted Average Common      Shares Outstanding with Dilution (000,000)			5,943				5,214				14.0	%			5,463				5,224				4.6	%

 

 

Financial Data
AT&T Inc.
Statements of Segment Income
Dollars in millions
Unaudited
	Three Months Ended													Nine Months Ended
		9/30/2015				9/30/2014				% Chg					9/30/2015				9/30/2014				% Chg
Business Solutions
Segment Operating Revenues
Wireless service		$	7,732			$	7,542				2.5	%			$	23,003			$	22,593				1.8	%
Fixed strategic services			2,763				2,454				12.6	%				8,083				7,103				13.8	%
Legacy voice and data services			4,499				4,928				-8.7	%				13,743				15,055				-8.7	%
Other services			885				977				-9.4	%				2,585				2,834				-8.8	%
Wireless equipment			1,813				1,586				14.3	%				5,499				4,292				28.1	%
Total Segment Operating Revenues			17,692				17,487				1.2	%				52,913				51,877				2.0	%
Segment Operating Expenses
Operations and Support Expenses			10,921				11,295				-3.3	%				32,966				32,836				0.4	%
Depreciation and amortization			2,474				2,331				6.1	%				7,276				7,009				3.8	%
Total Segment Operating Expenses			13,395				13,626				-1.7	%				40,242				39,845				1.0	%
Segment Operating Income			4,297				3,861				11.3	%				12,671				12,032				5.3	%
Equity in Net Income of Affiliates			-				-				-					-				-				-
Segment Contribution		$	4,297			$	3,861				11.3	%			$	12,671			$	12,032				5.3	%
Segment Operating Income Margin			24.3	%			22.1	%								23.9	%			23.2	%
Entertainment and Internet Services
Segment Operating Revenues
Video entertainment		$	7,162			$	1,719				-				$	11,024			$	5,016				-
High-speed internet			1,685				1,414				19.2	%				4,861				4,040				20.3	%
Legacy voice and data services			1,419				1,834				-22.6	%				4,547				5,897				-22.9	%
Equipment and other			592				586				1.0	%				1,868				1,687				10.7	%
Total Segment Operating Revenues			10,858				5,553				95.5	%				22,300				16,640				34.0	%
Segment Operating Expenses
Operations and Support Expenses			8,450				4,781				76.7	%				18,222				14,182				28.5	%
Depreciation and amortization			1,389				1,109				25.2	%				3,519				3,396				3.6	%
Total Segment Operating Expenses			9,839				5,890				67.0	%				21,741				17,578				23.7	%
Segment Operating Income			1,019				(337	)			-					559				(938	)			-
Equity in Net Income (Loss) of Affiliates			2				-				-					(16	)			-				-
Segment Contribution		$	1,021			$	(337	)			-				$	543			$	(938	)			-
Segment Operating Income Margin			9.4	%			-6.1	%								2.5	%			-5.6	%

Financial Data
AT&T Inc.
Statements of Segment Income
Dollars in millions
Unaudited
	Three Months Ended													Nine Months Ended
		9/30/2015				9/30/2014				% Chg					9/30/2015				9/30/2014				% Chg
Consumer Mobility
Segment Operating Revenues
Postpaid wireless service		$	5,527			$	6,071				-9.0	%			$	16,783			$	18,490				-9.2	%
Prepaid wireless service			1,198				1,163				3.0	%				3,411				3,106				9.8	%
Other service revenue			638				646				-1.2	%				1,825				1,768				3.2	%
Equipment			1,421				1,328				7.0	%				4,298				3,883				10.7	%
Total Segment Operating Revenues			8,784				9,208				-4.6	%				26,317				27,247				-3.4	%
Segment Operating Expenses
Operations and Support Expenses			5,065				5,731				-11.6	%				15,808				17,173				-7.9	%
Depreciation and amortization			976				950				2.7	%				2,912				2,846				2.3	%
Total Segment Operating Expenses			6,041				6,681				-9.6	%				18,720				20,019				-6.5	%
Segment Operating Income			2,743				2,527				8.5	%				7,597				7,228				5.1	%
Equity in Net Income (Loss) of Affiliates			-				(1	)			-					-				(1	)			-
Segment Contribution		$	2,743			$	2,526				8.6	%			$	7,597			$	7,227				5.1	%
Segment Operating Income Margin			31.2	%			27.4	%								28.9	%			26.5	%
International
Segment Operating Revenues
Video entertainment		$	945			$	-				-				$	945			$	-				-
Wireless service			494				-				-					1,153				-				-
Wireless equipment			87				-				-					155				-				-
Total Segment Operating Revenues			1,526				-				-					2,253				-				-
Segment Operating Expenses
Operations and Support Expenses			1,384				-				-					2,131				-				-
Depreciation and amortization			225				-				-					346				-				-
Total Segment Operating Expenses			1,609				-				-					2,477				-				-
Segment Operating Income (Loss)			(83	)			-				-					(224	)			-				-
Equity in Net Income (Loss) of Affiliates			(4	)			-				-					(4	)			153				-
Segment Contribution		$	(87	)		$	-				-				$	(228	)		$	153				-
Segment Operating Income Margin			-5.4	%												-9.9	%

 

 

 

 

 

 

Financial Data
AT&T Inc.
Supplementary Operating and Financial Data
Dollars in millions except per share amounts, subscribers and connections in (000s)
Unaudited		Three Months Ended												Nine Months Ended
		9/30/2015				9/30/2014				% Chg				9/30/2015				9/30/2014				% Chg
Business Solutions Wireless Subscribers															71,561				62,551				14.4	%
Postpaid															47,414				44,063				7.6	%
Reseller															83				6				-
Connected Devices1															24,064				18,482				30.2	%
Business Solutions Wireless Net Adds			1,875				1,816				3.2	%			4,968				3,646				36.3	%
Postpaid			265				545				-51.4	%			850				1,498				-43.3	%
Reseller			8				(4	)			-				14				4				-
Connected Devices1			1,602				1,275				25.6	%			4,104				2,144				91.4	%
Business Wireless Postpaid Churn			1.05	%			0.84	%		21 BP					0.95	%			0.84	%		11 BP
Consumer Mobility Subscribers															54,845				56,099				-2.2	%
Postpaid															29,257				31,043				-5.8	%
Prepaid1															10,988				10,026				9.6	%
Reseller															13,647				13,877				-1.7	%
Connected Devices1															953				1,153				-17.3	%
Consumer Mobility Net Adds			638				191				-				857				57				-
Postpaid			23				240				-90.4	%			289				938				-69.2	%
Prepaid1			466				(46	)			-				895				(244	)			-
Reseller			149				91				63.7	%			(218	)			(286	)			23.8	%
Connected Devices1			-				(94	)			-				(109	)			(351	)			68.9	%
Consumer Mobility Postpaid Churn			1.33	%			1.20	%		13 BP					1.23	%			1.15	%		8 BP
Total Consumer Mobility Churn			1.90	%			2.03	%		-13 BP					1.93	%			1.99	%		-6 BP
Entertainment and Internet Services Connections															52,637				34,694				51.7	%
Video Connections															25,424				5,848				-
Satellite															19,570				-				-
U-verse															5,854				5,848				0.1	%
Video Net Adds			(66	)			212				-				(40	)			591				-
Satellite			26				-				-				26				-				-
U-verse			(92	)			212				-				(66	)			591				-
Broadband Connections															14,322				14,465				-1.0	%
IP															12,185				11,010				10.7	%
DSL															2,137				3,455				-38.1	%
Broadband Net Adds			(106	)			68				-				(120	)			152				-
IP			172				547				-68.6	%			802				1,527				-47.5	%
DSL			(278	)			(479	)			42.0	%			(922	)			(1,375	)			32.9	%
Total Wireline Voice Connections															12,891				14,381				-10.4	%
AT&T International
Wireless Subscribers and Connections
Subscribers															8,091				-				-
Net Adds			(231	)			-				-				(689	)			-				-
Total Churn			5.61	%			-				-				6.87	%			-				-
Video Subscribers and Connections
Latin America Video Subscribers			(113	)			-				-				12,544				-				-
Pan Americana			16				-				-				7,006				-				-
Brazil			(129	)			-				-				5,538				-				-
AT&T Total Subscribers and Connections
AT&T Mobility Subscribers															126,406				118,650				6.5	%
Postpaid															76,671				75,105				2.1	%
Prepaid1															10,988				10,026				9.6	%
Reseller															13,729				13,884				-1.1	%
Connected Devices1															25,018				19,635				27.4	%
AT&T Mobility Net Adds			2,513				2,007				25.2	%			5,825				3,703				57.3	%
Postpaid			289				785				-63.2	%			1,140				2,436				-53.2	%
Prepaid1			466				(46	)			-				895				(244	)			-
Reseller			156				87				79.3	%			(205	)			(281	)			27.0	%
Connected Devices1			1,602				1,181				35.6	%			3,995				1,792				-
M&A Activity, Partitioned Customers and Other Adjs.			(9	)			9				-				27				4,571				-99.4	%
AT&T Mobility Churn
Postpaid Churn			1.16	%			0.99	%		17 BP					1.06	%			0.97	%		9 BP
Total Churn			1.33	%			1.36	%		-3 BP					1.35	%			1.41	%		-6 BP
Other
Domestic Licensed POPs (000,000)															321				321				-
Total Video Subscribers															37,994				6,067				-
Domestic															25,450				6,067				-
Pan Americana															7,006				-				-
Brazil															5,538				-				-
Total Video Net Adds			(178	)			216				-				(150	)			607				-
Domestic			(65	)			216				-				(37	)			607				-
Pan Americana			16				-				-				16				-				-
Brazil			(129	)			-				-				(129	)			-				-
Total Broadband Connections															15,832				16,486				-4.0	%
IP															13,076				12,098				8.1	%
DSL															2,756				4,388				-37.2	%
Broadband Net Adds			(129	)			38				-				(196	)			61				-
IP			192				601				-68.1	%			871				1,723				-49.4	%
DSL			(321	)			(563	)			43.0	%			(1,067	)			(1,662	)			35.8	%
Total Wireline Voice Connections															22,795				26,220				-13.1	%
AT&T Inc.
Construction and capital expenditures:
Capital expenditures		$	5,028			$	5,180				-2.9	%		$	13,356			$	16,829				-20.6	%
Interest during construction		$	227			$	60				-			$	566			$	178				-
Dividends Declared per Share		$	0.47			$	0.46				2.2	%		$	1.41			$	1.38				2.2	%
End of Period Common Shares Outstanding (000,000)															6,152				5,185				18.6	%
Debt Ratio2															50.8	%			43.9	%		690 BP
Total Employees															281,240				247,700				13.5	%