AT&T Wireless 2006 Annual Report Download - page 20

18 : : 2006 AT&T Annual Report
At December 31 or for the year ended: 2006
2 20053 2004 2003 2002
Financial Data1
Operating revenues $ 63,055 $ 43,764 $ 40,733 $ 40,498 $ 42,821
Operating expenses $ 52,767 $ 37,596 $ 34,832 $ 34,214 $ 34,383
Operating income $ 10,288 $ 6,168 $ 5,901 $ 6,284 $ 8,438
Interest expense $ 1,843 $ 1,456 $ 1,023 $ 1,191 $ 1,382
Equity in net income of affiliates $ 2,043 $ 609 $ 873 $ 1,253 $ 1,921
Other income (expense) – net $ 16 $ 14 $ 922 $ 1,767 $ 733
Income taxes $ 3,525 $ 932 $ 2,186 $ 2,857 $ 2,910
Income from continuing operations $ 7,356 $ 4,786 $ 4,979 $ 5,859 $ 7,361
Income from discontinued operations, net of tax4 $ — $ — $ 908 $ 112 $ 112
Income before extraordinary item and
cumulative effect of accounting changes $ 7,356 $ 4,786 $ 5,887 $ 5,971 $ 7,473
Net income5 $ 7,356 $ 4,786 $ 5,887 $ 8,505 $ 5,653
Earnings per common share:
Income from continuing operations $ 1.89 $ 1.42 $ 1.50 $ 1.77 $ 2.21
Income before extraordinary item and
cumulative effect of accounting changes $ 1.89 $ 1.42 $ 1.78 $ 1.80 $ 2.24
Net income5 $ 1.89 $ 1.42 $ 1.78 $ 2.56 $ 1.70
Earnings per common share – assuming dilution:
Income from continuing operations $ 1.89 $ 1.42 $ 1.50 $ 1.76 $ 2.20
Income before extraordinary item and
cumulative effect of accounting changes $ 1.89 $ 1.42 $ 1.77 $ 1.80 $ 2.23
Net income5 $ 1.89 $ 1.42 $ 1.77 $ 2.56 $ 1.69
Total assets $270,634 $145,632 $110,265 $102,016 $ 95,170
Long-term debt $ 50,063 $ 26,115 $ 21,231 $ 16,097 $ 18,578
Construction and capital expenditures $ 8,320 $ 5,576 $ 5,099 $ 5,219 $ 6,808
Dividends declared per common share6 $ 1.35 $ 1.30 $ 1.26 $ 1.41 $ 1.08
Book value per common share $ 18.52 $ 14.11 $ 12.27 $ 11.57 $ 10.01
Ratio of earnings to fixed charges 5.01 4.11 6.32 6.55 6.20
Debt ratio 34.1% 35.9% 40.0% 32.0% 39.9%
Weighted-average common shares
outstanding (000,000) 3,882 3,368 3,310 3,318 3,330
Weighted-average common shares
outstanding with dilution (000,000) 3,902 3,379 3,322 3,329 3,348
End of period common shares outstanding (000,000) 6,239 3,877 3,301 3,305 3,318
Operating Data
Network access lines in service (000)7 66,470 49,413 52,356 54,683 57,083
DSL lines in service (000)7 12,161 6,921 5,104 3,515 2,199
Wireless customers (000)8 60,962 54,144 49,132 24,027 21,925
Number of employees 302,770 189,950 162,700 168,950 175,980
1
Amounts in the above table have been prepared in accordance with U.S. generally accepted accounting principles.
2
Our 2006 income statement amounts reflect results from BellSouth Corporation (BellSouth) and AT&T Mobility LLC (AT&T Mobility), formerly Cingular Wireless LLC, for the
two days following the December 29, 2006 acquisition. Our 2006 balance sheet and end-of-year metrics include 100% of BellSouth and AT&T Mobility.
3
Our 2005 income statement amounts reflect results from AT&T Corp. for the 43 days following the November 18, 2005 acquisition. Our 2005 balance sheet and end-of-
year metrics include 100% of ATTC.
4
Our financial statements for all periods presented reflect results from our sold directory advertising business in Illinois and northwest Indiana as discontinued operations.
The operational results and the gain associated with the sale of that business are presented in “Income from discontinued operations, net of tax.”
5
Amounts include the following extraordinary item and cumulative effect of accounting changes: 2003, extraordinary loss of $7 related to the adoption of Financial
Accounting Standards Board Interpretation No. 46 “Consolidation of Variable Interest Entities, an Interpretation of Accounting Research Bulletin No. 51” and the
cumulative effect of accounting changes of $2,541, which includes a $3,677 benefit related to the adoption of Statement of Financial Accounting Standards No. 143,
“Accounting for Asset Retirement Obligations” and a $1,136 charge related to the January 1, 2003 change in the method in which we recognize revenues and
expenses related to publishing directories from the “issue basis” method to the “amortization” method; 2002, charges related to a January 1, 2002 adoption of
Statement of Financial Accounting Standards No. 142, “Goodwill and Other Intangible Assets.”
6
Dividends declared by AT&T’s Board of Directors reflect the following: 2003, includes three additional dividends totaling $0.25 per share above our regular quarterly
dividend payout.
7
The number presented reflects in-region lines in service (i.e., the 13 states historically served by us). The 2006 number includes BellSouth lines in service.
8 The number presented represents, for all periods presented, 100% of AT&T Mobility cellular/PCS customers. The 2004 number includes customers from the acquisition of
AT&T Wireless Services, Inc. Prior to the December 29, 2006 BellSouth acquisition, AT&T Mobility was a joint venture in which we owned 60% and was accounted
for under the equity method.
Selected Financial and Operating Data
Dollars in millions except per share amounts