Form 8-K AT&T INC. For: Jan 26

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) January 26, 2016

(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 January 26, 2016 that fourth-quarter 2015 net income attributable to AT&T totaled $4.0 billion, or $0.65 per diluted share. Fourth-quarter 2015 income per diluted share included adjustments netting to $327 million, or $0.02 per share, resulting from the following significant items: $0.22 per diluted share for noncash gains for the annual adjustment related to pension and postemployment benefit accounting mostly offset by $0.20 per diluted share for merger and integration expenses and other adjustments. The results compare with a reported net loss attributable to AT&T of $4.0 billion, or $0.77 per diluted share, in the fourth quarter of 2014. For the full year 2015, net income attributable to AT&T was $13.3 billion versus $6.4 billion in 2014; earnings per diluted share were $2.37 compared with $1.24 for 2014.

On a reported basis, our fourth-quarter 2015 revenues were $42.1 billion, up 22.3 percent from the fourth-quarter 2014, and full-year 2015 revenues were $146.8 billion, compared with $132.4 billion for the previous full year. Fourth-quarter and full-year 2015 revenues reflect increased revenues primarily from our acquisition of DIRECTV. Compared with results for the fourth quarter of 2014, operating expenses were $34.6 billion versus $39.9 billion and full-year 2015 operating expenses were $122.0 billion versus $120.2 billion; fourth-quarter operating income was $7.5 billion, up from a loss of $5.5 billion and full-year 2015 operating income of $24.8 billion versus $12.2 billion; and AT&T's fourth-quarter operating income margin was 17.9 percent, compared to (15.9) percent and full-year 2015 operating income margin was 16.9 percent compared to 9.2 percent. The year-over-year quarter variances are primarily due to the noncash adjustments related to our pension and postemployment benefit accounting and the abandonment of network assets in the fourth quarter of 2014. For the full year, cash from operating activities was $35.9 billion, up from $31.3 billion in 2014, 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 2,234,000 domestic wireless subscribers in the fourth quarter of 2015, bringing that customer base to approximately 128.6 million at December 31, 2015, compared to 120.6 million at December 31, 2014. During the fourth quarter, for our domestic wireless operations, net adds for connected devices were 1,189,000, including 1.2 million connected cars. Postpaid subscriber net adds were 526,000, prepaid subscriber net adds were 469,000, with gains in both Cricket and GoPhone subscribers and reseller net adds were 50,000. Branded net adds (combined postpaid and prepaid) were 995,000 in the fourth quarter of 2015 reflecting gains in prepaid smartphones. Total postpaid tablet and computing device net adds were 696,000 in the fourth quarter of 2015.

In the fourth 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 December 31, 2015, Mobile Share Plans represented more than 61 million domestic wireless connections. About 69 percent of our domestic wireless postpaid smartphone base is on no-device-subsidy Mobile Share Value plans. At the end of the quarter, 51.1 million of postpaid smartphone subscribers are on usage-based data plans, compared to 48.5 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 fourth quarter, with more than 72 percent of all postpaid smartphone gross adds and upgrades taking Next, compared to 71 percent in the third quarter of 2015 and 58 percent in the fourth quarter of 2014. Combined with bring-your-own-device (BYOD) gross adds of 672,000 during the fourth quarter, 81 percent of smartphone transactions in the quarter were no-subsidy. During the fourth quarter of 2015, we sold 5.3 million smartphones under our AT&T Next program. At December 31, 2015, nearly 46 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. Total video subscribers declined by 60,000 in the quarter. At December 31, 2015, we had 37.9 million video subscribers compared with 5.9 million at December 31, 2014.

Our total broadband connections were 15.8 million at December 31, 2015 and 16.0 million at December 31, 2014. During the fourth quarter, we added 192,000 U-verse High Speed Internet subscribers, for a total of 13.3 million at December 31, 2015. More than 90 percent of our broadband subscribers who are IP-eligible have U-verse High Speed Internet. Total broadband subscribers declined by 54,000 in the quarter due in part to fewer U-verse sales promotions.

At December 31, 2015, our total switched access lines were 16.7 million compared with 19.9 million at December 31, 2014. The number of U-verse voice connections (which use VoIP technology and therefore are not included in the access line total) increased by 10,000 in the quarter to reach 5.5 million at December 31, 2015 compared to 4.9 million at December 31, 2014.

Segment Summary

Business Solutions

Revenues from our Business Solutions (ABS) segment for the fourth quarter of 2015 were $18.2 billion, down 2.7 percent versus the year-ago quarter driven by continued declines in our legacy voice and data services, lower equipment revenues and foreign exchange pressures, partially offset by continued growth in strategic business services and mobility service. Fourth-quarter 2015 ABS operating expenses totaled $14.5 billion, down 5.5 percent versus the fourth quarter of 2014, largely due to lower employee and commission expenses. The ABS operating margin was 20.4 percent, compared to 18.1 percent in the year-earlier quarter with wireless and IP revenue growth and cost efficiencies offsetting declines in legacy services.

We had approximately 73.7 million business wireless subscribers at December 31, 2015 compared to 65.1 million at December 31, 2014. During the fourth quarter of 2015, business wireless net adds for connected devices were 1,211,000 and postpaid net adds were 353,000. Postpaid business wireless subscriber churn was 1.10 percent, compared to 1.08 percent in the year-ago quarter.

During the fourth quarter of 2015, we added 21,000 high-speed Internet business subscribers, bringing total business IP broadband to 912,000 subscribers. Total business broadband had a loss of 18,000 subscribers in the quarter.

Entertainment Group

Our Entertainment Group (Entertainment) 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. Entertainment revenues for the fourth quarter of 2015 were $13.0 billion, more than 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. Fourth-quarter 2015 Entertainment operating expenses totaled $11.5 billion compared to $5.9 billion in the fourth quarter of 2014, largely due to the acquisition of DIRECTV. The Entertainment operating margin was 11.1 percent, compared to (5.3) percent in the year-earlier quarter with satellite and IP revenue growth and cost efficiencies largely offsetting programming content cost pressure and declines in legacy services.

At December 31, 2015, Entertainment had approximately 52.2 million revenue connections, compared to 34.4 million at December 31, 2015, which included:

·

Approximately 25.4 million video connections at December 31, 2015 compared to 5.9 million at December 31, 2014. DIRECTV's satellite subscribers as of the July 24, 2015 acquisition date was 19.5 million. During the fourth quarter, we added 214,000 satellite subscribers; however, U-verse subscribers declined 240,000 as we focused on profitability and increasingly emphasized satellite sales, including U-verse subscribers switching to satellite.

·

Approximately 14.3 million broadband connections at December 31, 2015 compared to 14.4 million at December 31, 2014. During the fourth quarter, we added 171,000 U-verse High Speed Internet subscribers, for a total of 12.4 million at December 31, 2015. Total broadband subscribers declined by 37,000 in the quarter due in part to fewer U-verse sales promotions.

·	Approximately 12.5 million wired voice connections at December 31, 2015 compared to 14.0 million at December 31, 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 fourth quarter of 2015 were $8.7 billion, down 8.1 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) and lower equipment revenues, partially offset by higher prepaid service revenues. Fourth-quarter 2015 Consumer Mobility operating expenses totaled $6.6 billion, down 14.2 percent versus the fourth quarter of 2014. The Consumer Mobility operating margin was 24.5 percent, compared to 19.1 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 55.0 million Consumer Mobility subscribers at December 31, 2015 compared to 55.4 million at December 31, 2014. During the fourth quarter of 2015, prepaid net adds were 469,000, consumer postpaid net adds were 174,000 and reseller net adds were 50,000. 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 1.97 percent versus 2.21 percent in the fourth quarter of 2014, reflecting improvements in prepaid churn. Consumer Mobility postpaid churn was 1.31 percent, compared to 1.43 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. Fourth quarter 2015 operating revenues were $1.8 billion, with $1.2 million attributable to video services in Latin America and $643 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 $2.1 billion and operating loss was $259 million for the fourth quarter of 2015.

At December 31, 2015, we had approximately 8.7 million wireless subscribers in Mexico and 12.5 million video connections in Latin America, including 5.4 million in Brazil. During the fourth quarter of 2015, our Mexico wireless business had net adds of 593,000 subscribers and our Latin America operations had a net loss of 34,000 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 (domestic only). AT&T Mobility revenues for the fourth quarter of 2015 were $18.9 billion, down 4.9 percent versus with the fourth quarter of 2014 and AT&T Mobility's operating income margin was 23.2 percent compared to 18.0 percent in the year-ago quarter reflecting stabilizing service revenues, lower smartphone gross adds and strong operational efficiencies.

For the quarter ended December 31, 2015, postpaid phone-only ARPU decreased 2.0 percent versus the year-earlier quarter and 1.7 percent sequentially. Postpaid phone-only ARPU plus AT&T Next increased 4.6 percent versus the year earlier quarter and 0.1 percent sequentially.

Postpaid churn was 1.18 percent, compared to 1.22 percent in the year-ago. Total customer churn was 1.50 percent versus 1.59 percent in the fourth quarter of 2014.

Repurchases of our common stock under our previously announced share repurchase authorization by our Board of Directors totaled 8 million shares, or $269 million during the fourth quarter of 2015. At December 31, 2015, about 407 million shares remain on existing authorizations.

We expect that our total capital expenditures in 2016 will be in the $22 billion range. We expect double-digit growth in consolidated revenue, stable consolidated margins and adjusted earnings per share growth in the mid-single digit range. Expectations do not assume any economic improvement. Our guidance excludes pension and postemployment actuarial gains and losses, pending acquisitions and dispositions as well as any other significant items in year-over-year comparisons.

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												Twelve Months Ended
		12/31/2015				12/31/2014				% Chg				12/31/2015				12/31/2014				% Chg
Operating Revenues
Service		$	37,635			$	29,315				28.4	%		$	131,677			$	118,437				11.2	%
Equipment			4,484				5,124				-12.5	%			15,124				14,010				8.0	%
Total Operating Revenues			42,119				34,439				22.3	%			146,801				132,447				10.8	%
Operating Expenses
Cost of services and sales
Equipment			5,868				6,443				-8.9	%			19,268				18,946				1.7	%
Broadcast, programming and operations			5,645				1,056				-				11,996				4,075				-
Other cost of services (exclusive of depreciation            and amortization shown separately below)			8,178				10,957				-25.4	%			35,782				37,124				-3.6	%
Selling, general and administrative			8,419				14,765				-43.0	%			32,954				39,697				-17.0	%
Abandonment of network assets			-				2,120				-				-				2,120				-
Depreciation and amortization			6,477				4,567				41.8	%			22,016				18,273				20.5	%
Total Operating Expenses			34,587				39,908				-13.3	%			122,016				120,235				1.5	%
Operating Income (Loss)			7,532				(5,469	)			-				24,785				12,212				-
Interest Expense			1,143				856				33.5	%			4,120				3,613				14.0	%
Equity in Net Income (Loss) of Affiliates			31				(13	)			-				79				175				-54.9	%
Other Income (Expense) - Net			(113	)			125				-				(52	)			1,581				-
Income (Loss) Before Income Taxes			6,307				(6,213	)			-				20,692				10,355				99.8	%
Income Tax Expense (Benefit)			2,221				(2,295	)			-				7,005				3,619				93.6	%
Net Income (Loss)			4,086				(3,918	)			-				13,687				6,736				-
Less: Net Income Attributable to Noncontrolling Interest			(80	)			(81	)			1.2	%			(342	)			(294	)			-16.3	%
Net Income (Loss) Attributable to AT&T		$	4,006			$	(3,999	)			-			$	13,345			$	6,442				-
Basic Earnings Per Share Attributable to AT&T		$	0.65			$	(0.77	)			-			$	2.37			$	1.24				91.1	%
Weighted Average Common      Shares Outstanding (000,000)			6,165				5,198				18.6	%			5,628				5,205				8.1	%
Diluted Earnings Per Share Attributable to AT&T		$	0.65			$	(0.77	)			-			$	2.37			$	1.24				91.1	%
Weighted Average Common      Shares Outstanding with Dilution (000,000)			6,187				5,214				18.7	%			5,646				5,221				8.1	%

 

 

 

Financial Data
AT&T Inc.
Statements of Segment Income
Dollars in millions
Unaudited
		Three Months Ended													Twelve Months Ended
		12/31/2015					12/31/2014				% Chg				12/31/2015					12/31/2014				% Chg
Business Solutions
Segment Operating Revenues
Wireless service		$	7,684				$	7,589				1.3	%		$	30,687				$	30,182				1.7	%
Fixed strategic services			2,827					2,563				10.3	%			10,910					9,666				12.9	%
Legacy voice and data services			4,276					4,802				-11.0	%			18,019					19,857				-9.3	%
Other service and equipment			973					1,026				-5.2	%			3,558					3,860				-7.8	%
Wireless equipment			2,454					2,749				-10.7	%			7,953					7,041				13.0	%
Total Segment Operating Revenues			18,214					18,729				-2.7	%			71,127					70,606				0.7	%
Segment Operating Expenses
Operations and support expenses			11,980					12,990				-7.8	%			44,946					45,826				-1.9	%
Depreciation and amortization			2,513					2,346				7.1	%			9,789					9,355				4.6	%
Total Segment Operating Expenses			14,493					15,336				-5.5	%			54,735					55,181				-0.8	%
Segment Operating Income			3,721					3,393				9.7	%			16,392					15,425				6.3	%
Equity in Net Income of Affiliates			-					-				-				-					-				-
Segment Contribution		$	3,721				$	3,393				9.7	%		$	16,392				$	15,425				6.3	%
Segment Operating Income Margin			20.4	%				18.1	%							23.0	%				21.8	%
Entertainment Group
Segment Operating Revenues
Video entertainment		$	9,247				$	1,810				-			$	20,271				$	6,826				-
High-speed Internet			1,740					1,482				17.4	%			6,601					5,522				19.5	%
Legacy voice and data services			1,367					1,695				-19.4	%			5,914					7,592				-22.1	%
Other service and equipment			640					606				5.6	%			2,508					2,293				9.4	%
Total Segment Operating Revenues			12,994					5,593				-				35,294					22,233				58.7	%
Segment Operating Expenses
Operations and support expenses			10,123					4,810				-				28,345					18,992				49.2	%
Depreciation and amortization			1,426					1,077				32.4	%			4,945					4,473				10.6	%
Total Segment Operating Expenses			11,549					5,887				96.2	%			33,290					23,465				41.9	%
Segment Operating Income (Loss)			1,445					(294	)			-				2,004					(1,232	)			-
Equity in Net Income (Loss) of Affiliates			12					(2	)			-				(4	)				(2	)			-
Segment Contribution		$	1,457				$	(296	)			-			$	2,000				$	(1,234	)			-
Segment Operating Income Margin			11.1	%				-5.3	%							5.7	%				-5.5	%

 

Financial Data
AT&T Inc.
Statements of Segment Income
Dollars in millions
Unaudited
		Three Months Ended													Twelve Months Ended
		12/31/2015					12/31/2014				% Chg				12/31/2015					12/31/2014				% Chg
Consumer Mobility
Segment Operating Revenues
Postpaid wireless service		$	5,247				$	5,792				-9.4	%		$	22,030				$	24,282				-9.3	%
Prepaid wireless service			1,251					1,099				13.8	%			4,662					4,205				10.9	%
Other service revenue			633					595				6.4	%			2,458					2,363				4.0	%
Equipment			1,618					2,036				-20.5	%			5,916					5,919				-0.1	%
Total Segment Operating Revenues			8,749					9,522				-8.1	%			35,066					36,769				-4.6	%
Segment Operating Expenses
Operations and support expenses			5,669					6,718				-15.6	%			21,477					23,891				-10.1	%
Depreciation and amortization			939					981				-4.3	%			3,851					3,827				0.6	%
Total Segment Operating Expenses			6,608					7,699				-14.2	%			25,328					27,718				-8.6	%
Segment Operating Income			2,141					1,823				17.4	%			9,738					9,051				7.6	%
Equity in Net Income (Loss) of Affiliates			-					-				-				-					(1	)			-
Segment Contribution		$	2,141				$	1,823				17.4	%		$	9,738				$	9,050				7.6	%
Segment Operating Income Margin			24.5	%				19.1	%							27.8	%				24.6	%
International
Segment Operating Revenues
Video entertainment		$	1,206				$	-				-			$	2,151				$	-				-
Wireless service			494					-				-				1,647					-				-
Wireless equipment			149					-				-				304					-				-
Total Segment Operating Revenues			1,849					-				-				4,102					-				-
Segment Operating Expenses
Operations and support expenses			1,799					-				-				3,930					-				-
Depreciation and amortization			309					-				-				655					-				-
Total Segment Operating Expenses			2,108					-				-				4,585					-				-
Segment Operating Income (Loss)			(259	)				-				-				(483	)				-				-
Equity in Net Income (Loss) of Affiliates			(1	)				-				-				(5	)				153				-
Segment Contribution		$	(260	)			$	-				-			$	(488	)			$	153				-
Segment Operating Income Margin			-14.0	%												-11.8	%

 

Financial Data
AT&T Inc.
Consolidated Balance Sheets
Dollars in millions
Unaudited	December 31,
		2015					2014
Assets
Current Assets
Cash and cash equivalents		$	5,121				$	8,603
Accounts receivable - net of allowances for doubtful accounts of $704 and $454			16,532					14,527
Prepaid expenses			1,072					831
Other current assets			13,267					9,645
Total current assets			35,992					33,606
Property, Plant and Equipment - Net			124,450					112,898
Goodwill			104,568					69,692
Licenses			93,093					60,824
Customer Lists and Relationships - Net			18,208					812
Other Intangible Assets - Net			9,409					5,327
Investments in Equity Affiliates			1,606					250
Other Assets			14,485					13,425
Total Assets		$	401,811				$	296,834
Liabilities and Stockholders' Equity
Current Liabilities
Debt maturing within one year		$	7,636				$	6,056
Accounts payable and accrued liabilities			30,372					23,592
Advanced billing and customer deposits			4,682					4,105
Accrued taxes			2,176					1,091
Dividends payable			2,950					2,438
Total current liabilities			47,816					37,282
Long-Term Debt			118,515					75,778
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes			55,319					38,436
Postemployment benefit obligation			34,262					37,079
Other noncurrent liabilities			22,259					17,989
Total deferred credits and other noncurrent liabilities			111,840					93,504
Stockholders' Equity
Common stock			6,495					6,495
Additional paid-in capital			89,763					91,108
Retained earnings			33,671					31,081
Treasury stock			(12,592	)				(47,029	)
Accumulated other comprehensive income			5,334					8,061
Noncontrolling interest			969					554
Total stockholders' equity			123,640					90,270
Total Liabilities and Stockholders' Equity		$	401,811				$	296,834

 

 

Financial Data
AT&T Inc.
Consolidated Statements of Cash Flows
Dollars in millions
(Unaudited)
		Twelve months ended December 31,
		2015				2014
Operating Activities
Net income		$	13,687			$	6,736
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization			22,016				18,273
Undistributed earnings from investments in equity affiliates			(49	)			(27	)
Provision for uncollectible accounts			1,416				1,032
Deferred income tax expense			4,117				1,948
Net loss (gain) from sale of investments, net of impairments			91				(1,461	)
Actuarial (gain) loss on pension and postretirement benefits			(2,152	)			7,869
Abandonment of network assets			-				2,120
Changes in operating assets and liabilities:
Accounts receivable			(535	)			(2,651	)
Other current assets			(1,789	)			(974	)
Accounts payable and accrued liabilities			1,291				2,412
Retirement benefit funding			(735	)			(560	)
Other - net			(1,478	)			(3,379	)
Total adjustments			22,193				24,602
Net Cash Provided by Operating Activities			35,880				31,338
Investing Activities
Construction and capital expenditures:
Capital expenditures			(19,218	)			(21,199	)
Interest during construction			(797	)			(234	)
Acquisitions, net of cash acquired			(30,759	)			(3,141	)
Dispositions			83				8,123
Sales (purchases) of securities, net			1,545				(1,890	)
Return of advances to and investments in equity affiliates			1				4
Other			1				-
Net Cash Used in Investing Activities			(49,144	)			(18,337	)
Financing Activities
Net change in short-term borrowings with
original maturities of three months or less			(1	)			(16	)
Issuance of long-term debt			33,969				15,926
Repayment of long-term debt			(10,042	)			(10,400	)
Issuance of other long-term financing obligations			-				107
Purchase of treasury stock			(269	)			(1,617	)
Issuance of treasury stock			143				39
Dividends paid			(10,200	)			(9,552	)
Other			(3,818	)			(2,224	)
Net Cash Provided by (Used in) Financing Activities			9,782				(7,737	)
Net (decrease) increase in cash and cash equivalents			(3,482	)			5,264
Cash and cash equivalents beginning of year			8,603				3,339
Cash and Cash Equivalents End of Year		$	5,121			$	8,603

 

 

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												Twelve Months Ended
		12/31/2015				12/31/2014				% Chg				12/31/2015				12/31/2014				% Chg
Business Solutions Wireless Subscribers															73,659				65,114				13.1	%
Postpaid															48,290				45,160				6.9	%
Reseller															85				11				-
Connected Devices1															25,284				19,943				26.8	%
Business Solutions Wireless Net Adds			1,563				1,863				-16.1	%			6,531				5,509				18.6	%
Postpaid			353				566				-37.6	%			1,203				2,064				-41.7	%
Reseller			(1	)			2				-				13				6				-
Connected Devices1			1,211				1,295				-6.5	%			5,315				3,439				54.6	%
Business Wireless Postpaid Churn			1.10	%			1.08	%		2		BP			0.99	%			0.90	%		9		BP
Consumer Mobility Subscribers															54,981				55,440				-0.8	%
Postpaid															28,814				30,610				-5.9	%
Prepaid1															11,548				9,965				15.9	%
Reseller															13,690				13,844				-1.1	%
Connected Devices1															929				1,021				-9.0	%
Consumer Mobility Net Adds			671				42				-				1,528				99				-
Postpaid			174				288				-39.6	%			463				1,226				-62.2	%
Prepaid1			469				(67	)			-				1,364				(311	)			-
Reseller			50				(65	)			-				(168	)			(351	)			52.1	%
Connected Devices1			(22	)			(114	)			80.7	%			(131	)			(465	)			71.8	%
Consumer Mobility Postpaid Churn			1.31	%			1.43	%		-12		BP			1.25	%			1.22	%		3		BP
Total Consumer Mobility Churn			1.97	%			2.21	%		-24		BP			1.94	%			2.06	%		-12		BP
Entertainment Group															52,182				34,366				51.8	%
Video Connections															25,398				5,920				-
Satellite															19,784				-				-
U-verse															5,614				5,920				-5.2	%
Video Net Adds			(26	)			72				-				(66	)			663				-
Satellite			214				-				-				240				-				-
U-verse			(240	)			72				-				(306	)			663				-
Broadband Connections															14,286				14,444				-1.1	%
IP															12,356				11,383				8.5	%
DSL															1,930				3,061				-36.9	%
Broadband Net Adds			(37	)			(21	)			-76.2	%			(157	)			131				-
IP			171				372				-54.0	%			973				1,899				-48.8	%
DSL			(208	)			(393	)			47.1	%			(1,130	)			(1,768	)			36.1	%
Total Wireline Voice Connections															12,498				14,002				-10.7	%
AT&T International
Wireless Subscribers and Connections
Subscribers															8,684				-				-
Net Adds			593				-				-				(96	)			-				-
Total Churn			5.67	%			-				-				6.38	%			-				-
Video Subscribers and Connections
Latin America Video Subscribers			(34	)			-				-				12,510				-				-
Pan Americana			60				-				-				7,066				-				-
Brazil			(94	)			-				-				5,444				-				-

 

 

Financial Data
AT&T Inc.
Supplementary Operating and Financial Data
Dollars in millions except per share amounts, subscribers and connections in (000s)
Unaudited		Three Months Ended												Twelve Months Ended
		12/31/2015				12/31/2014			% Chg					12/31/2015				12/31/2014			% Chg
AT&T Total Susbscribers and Connections
AT&T Mobility Subscribers															128,640				120,554				6.7	%
Postpaid1															77,105				75,770				1.8	%
Prepaid1															11,548				9,965				15.9	%
Reseller															13,774				13,855				-0.6	%
Connected Devices1															26,213				20,964				25.0	%
AT&T Mobility Net Adds			2,234				1,905				17.3	%			8,059				5,608				43.7	%
Postpaid1			526				854				-38.4	%			1,666				3,290				-49.4	%
Prepaid1			469				(67	)			-				1,364				(311	)			-
Reseller			50				(65	)			-				(155	)			(346	)			55.2	%
Connected Devices1			1,189				1,183				0.5	%			5,184				2,975				74.3	%
M&A Activity, Partitioned Customers and Other Adjs.			-				(1	)			-				27				4,570				-
AT&T Mobility Churn
Postpaid Churn			1.18	%			1.22	%	-4			BP			1.09	%			1.04	%	5			BP
Total Churn			1.50	%			1.59	%	-9			BP			1.39	%			1.45	%	-6			BP
Other
Domestic Licensed POPs (000,000)															321				321				-
Total Video Subscribers															37,934				5,943				-
Domestic															25,424				5,943				-
Pan Americana															7,066				-				-
Brazil															5,444				-				-
Total Video Net Adds			(60	)			(124	)			51.6	%			(210	)			483				-
Domestic			(26	)			(124	)			79.0	%			(63	)			483				-
Pan Americana			60				-				-				76				-				-
Brazil			(94	)			-				-				(223	)			-				-
Total Broadband Connections															15,778				16,028				-1.6	%
IP															13,268				12,205				8.7	%
DSL															2,510				3,823				-34.3	%
Broadband Net Adds			(54	)			(458	)			88.2	%			(250	)			(397	)			37.0	%
IP			192				107				79.4	%			1,063				1,830				-41.9	%
DSL			(246	)			(565	)			56.5	%			(1,313	)			(2,227	)			41.0	%
Total Wireline Voice Connections															22,123				24,778				-10.7	%
AT&T Inc.
Construction and capital expenditures:
Capital expenditures		$	5,862			$	4,370				34.1	%		$	19,218			$	21,199				-9.3	%
Interest during construction		$	231			$	56				-			$	797			$	234				-
Dividends Declared per Share		$	0.48			$	0.47				2.1	%		$	1.89			$	1.85				2.2	%
End of Period Common Shares Outstanding (000,000)															6,145				5,187				18.5	%
Debt Ratio1,2															50.5	%			47.5	%	300			BP
Total Employees															281,450				243,620				15.5	%