EX-99 2 ex99_1.htm FINANCIAL INFORMATION
Financial Data
AT&T Inc.
Consolidated Statements of Income
Dollars in millions except per share amounts
Unaudited Three Months Ended   Twelve Months Ended  
  12/31/06 12/31/05 % Chg   12/31/2006  12/31/2005 % Chg
Operating Revenues              
  Voice   $   8,183   $   7,129   14 .8% $   33,908   $   24,484   38 .5%
  Data   4,603   3,391   35 .7% 18,068   10,734   68 .3%
  Wireless service   192   -   -   192   -   -  
  Directory   905   902   0 .3% 3,621   3,625   -0 .1%
  Other   2,008   1,487   35 .0% 7,266   4,921   47 .7%
    Total Operating Revenues   15,891   12,909   23 .1% 63,055   43,764   44 .1%
Operating Expenses  
  Cost of sales (exclusive of depreciation  
    and amortization shown separately below)   6,708   5,856   14 .5% 27,349   19,009   43 .9%
  Selling, general and administrative   4,115   3,715   10 .8% 15,511   10,944   41 .7%
  Depreciation and amortization   2,492   2,206   13 .0% 9,907   7,643   29 .6%
    Total Operating Expenses   13,315   11,777   13 .1% 52,767   37,596   40 .4%
Operating Income   2,576   1,132   -   10,288   6,168   66 .8%
Interest Expense   465   405   14 .8% 1,843   1,456   26 .6%
Interest Income   99   92   7 .6% 377   383   -1 .6%
Equity in Net Income of Affiliates   605   267   -   2,043   609   -  
Other Income (Expense) - Net   (21 ) 3   -   16   14   14 .3%
Income Before Income Taxes   2,794   1,089   -   10,881   5,718   90 .3%
Income Taxes   856   (566 ) -   3,525   932   -  
Net Income   $   1,938   $   1,655   17 .1% $  7,356   $  4,786   53 .7%

Basic Earnings Per Share:		  
Net Income   $     0.50   $     0.46   8 .7% $    1.89   $    1.42   33 .1%
Weighted Average Common  
  Shares Outstanding (000,000)   3,888   3,569   8 .9% 3,882   3,368   15 .3%

Diluted Earnings Per Share:		  
Net Income   $     0.50   $     0.46   8 .7% $    1.89   $    1.42   33 .1%
Weighted Average Common  
  Shares Outstanding with Dilution (000,000)   3,911   3,580   9 .2% 3,902   3,379   15 .5%




Financial Data

AT&T Inc.
Consolidated Balance Sheets
Dollars in millions except per share amounts
    12/31/06
Unaudited 		   12/31/05  
Assets      
Current Assets  
 Cash and cash equivalents   $     2,418   $     1,224  
 Accounts receivable - net of allowances for  
     uncollectibles of $1,276 and $1,176   16,194   9,351  
 Prepaid expenses   1,477   1,029  
 Deferred income taxes   3,034   2,011  
 Other current assets   2,430   1,039  
  Total current assets   25,553   14,654  
 Property, plant and equipment - at cost   192,006   149,238  
  Less: accumulated depreciation and amortization   96,560   90,511  
Property, Plant and Equipment - Net   95,446   58,727  
Goodwill   67,287   14,055  
Intangible Assets - Net   59,740   8,503  
Investments in Equity Affiliates   2,323   2,031  
Investments in and Advances to Cingular Wireless   -   31,404  
Postemployment benefit   14,228   12,666  
Other Assets   6,865   3,592  
   Total Assets   $ 271,442   $ 145,632  

Liabilities and Stockholders' Equity		  
Current Liabilities  
 Debt maturing within one year   $     9,737   $     4,455  
 Accounts payable and accrued liabilities   25,508   17,088  
 Accrued taxes   3,026   2,586  
 Dividends payable   2,215   1,289  
  Total current liabilities   40,486   25,418  
Long-Term Debt   51,169   26,115  
Deferred Credits and Other Noncurrent Liabilities  
 Deferred income taxes   27,290   15,713  
 Postemployment benefit obligation   28,901   18,133  
 Unamortized investment tax credits   181   209  
 Other noncurrent liabilities   8,169   5,354  
  Total deferred credits and other noncurrent liabilities   64,541   39,409  

Stockholders' Equity		  
 Common shares issued ($1 par value)   6,495   4,065  
 Capital in excess of par value   91,058   27,499  
 Retained earnings   30,375   29,106  
 Treasury shares (at cost)   (7,368 ) (5,406 )
 Additional minimum pension liability adjustment   -   (218 )
 Accumulated other comprehensive income   (5,314 ) (356 )
  Total stockholders' equity   115,246   54,690  
   Total Liabilities and Stockholders' Equity   $ 271,442   $ 145,632  




Financial Data

AT&T Inc.
Consolidated Statements of Cash Flows
Dollars in millions, increase (decrease) in cash and cash equivalents
Unaudited Twelve Months Ended
  12/31/06 12/31/05 12/31/04   
Operating Activities        
Net income   $   7,356   $   4,786   $   5,887  
Adjustments to reconcile net income to  
  net cash provided by operating activities:  
 Depreciation and amortization   9,907   7,643   7,564  
 Undistributed earnings from investments in equity affiliates   (1,946 ) (451 ) (542 )
 Provision for uncollectible accounts   586   744   761  
 Amortization of investment tax credits   (28 ) (21 ) (32 )
 Deferred income tax (benefit) expense   (87 ) (658 ) 646  
 Net gain on sales of investments   (10 ) (135 ) (939 )
 Income from discontinued operations, net of tax   -   -   (908 )
 Retirement benefit funding   -   -   (2,232 )
Changes in operating assets and liabilities:  
   Accounts receivable   519   (94 ) 282  
   Other current assets   30   34   (102 )
   Accounts payable and accrued liabilities   (2,213 ) 74   408  
   Stock-based compensation tax benefit   (18 ) (3 ) (5 )
Other - net   1,519   1,055   162  
Total adjustments   8,259   8,188   5,063  
Net Cash Provided by Operating Activities   15,615   12,974   10,950  

Investing Activities		  
Construction and capital expenditures   (8,320 ) (5,576 ) (5,099 )
Receipts from (investments in) affiliates - net   (1,104 ) 2,436   (22,660 )
Dispositions   756   526   6,672  
Acquisitions, net of cash acquired   368   1,504   (74 )
Purchases of held-to-maturity securities   -   -   (135 )
Maturities of held-to-maturity securities   3   99   499  
Proceeds from note repayment   -   37   50  
Other   4   -   -  
Net Cash Used in Investing Activities   (8,293 ) (974 ) (20,747 )

Financing Activities		  
Net change in short-term borrowings with  
 original maturities of three months or less   3,649   (4,119 ) 3,398  
Repayment of other short-term borrowings   (2 ) -   -  
Issuance of long-term debt   1,491   1,973   6,461  
Repayment of long-term debt   (4,242 ) (2,682 ) (881 )
Purchase of treasury shares   (2,678 ) (1,843 ) (448 )
Issuance of treasury shares   589   432   216  
Repurchase of preferred shares of subsidiaries   -   (728 ) -  
Dividends paid   (5,153 ) (4,256 ) (4,141 )
Stock-based compensation tax benefit   18   3   5  
Other   200   (6 ) -  
Net Cash (Used in) Provided by Financing Activities   (6,128 ) (11,226 ) 4,610  
Net increase (decrease) in cash and cash equivalents  
  from continuing operations   1,194   774   (5,187 )
Net Cash Used in Operating Activities from Discontinued Operations   -   (310 ) (256 )
Net Cash Provided by Investing Activities from Discontinued Operations   -   -   1,397  
Net increase (decrease) in cash and cash equivalents   1,194   464   (4,046 )
Cash and cash equivalents beginning of year   1,224   760   4,806  
Cash and Cash Equivalents End of Year   $   2,418   $   1,224   $      760