ANNUAL HORIZONAL ANALYSIS - VERIZON (VT) 12 Months

Consolidated Statements of Income - USD ($) shares/$ in Millions Dec. 31, 2016 Change
Amount
Operating Revenues
Service revenues and other $108,468 $6,228
Wireless equipment revenues 17,512 -$588
Total Operating Revenues 125,980 $5,640
Operating Expenses
Cost of services (exclusive of items shown below) 29,186 $252
Wireless cost of equipment 22,238 $881
Selling, general and administrative expense, net 31,569 -$1,583
Depreciation and amortization expense 15,928 $89
Total Operating Expenses 98,921 -$361
Operating Income 27,059 $6,001
Equity in (losses) earnings of unconsolidated businesses -98 $12
Other income and (expense), net -1,599 $1,785
Interest expense -4,376 -$544
Income Before Provision For Income Taxes 20,986 $7,254
Provision for income taxes -7,378 -$2,487
Net Income 13,608 $4,767
Net income attributable to noncontrolling interests 481 $15
Net income attributable to Verizon $13,127 $4,752
Basic Earnings Per Common Share
Net income attributable to Verizon $3.22 $1
Weighted-average shares outstanding (in millions) 4,080 $5
Diluted Earnings Per Common Share
Net income attributable to Verizon $3.21 $1
Weighted-average shares outstanding (in millions) 4,086 $7
 12 Months Ended
Change Dec. 31, 2015 Change Dec. 31, 2014
Percent Amount Percent

5.43% $114,696 -$1,426 -1.23% $116,122

-3.47% 16,924 $5,967 54.46% 10,957
4.29% 131,620 $4,541 3.57% 127,079

0.86% 29,438 $1,132 4.00% 28,306

3.81% 23,119 $1,494 6.91% 21,625
-5.28% 29,986 -$11,030 -26.89% 41,016
0.56% 16,017 -$516 -3.12% 16,533
-0.37% 98,560 -$8,920 -8.30% 107,480
18.15% 33,060 $13,461 68.68% 19,599
-13.95% -86 -$1,866 -104.83% 1,780
959.68% 186 $1,380 -115.58% -1,194
11.06% -4,920 -$5 0.10% -4,915
25.69% 28,240 $12,970 84.94% 15,270
25.21% -9,865 -$6,551 197.68% -3,314
25.94% 18,375 $6,419 53.69% 11,956
3.02% 496 -$1,835 -78.72% 2,331
26.58% $17,879 $8,254 85.76% $9,625

26.48% $4.38 $2 80.99% $2.42

0.12% 4,085 $111 2.79% 3,974

26.54% $4.37 $2 80.58% $2.42

0.17% 4,093 $112 2.81% 3,981
ANNUAL HORIZONTAL ANALYSIS - VERIZON (VT) Change
Consolidated Balance Sheets - USD ($) $ in Millions Dec. 31, 2016 Amount
Current assets
Cash and cash equivalents $2,880 -$1,590
Short-term investments -$350
Accounts receivable, net of allowances of $845 and $882 17,513 $4,056
Inventories 1,202 -$50
Assets held for sale 882 $90
Prepaid expenses and other 3,918 $1,884
Total current assets 26,395 $4,040
Plant, property and equipment 232,215 $12,052
Less accumulated depreciation 147,464 $10,842
Plant, property and equipment, net 84,751 $1,210
Investments in unconsolidated businesses 1,110 $314
Wireless licenses 86,673 $98
Goodwill 27,205 $1,874
Other intangible assets, net 8,897 $1,305
Non-current assets held for sale 613 -$9,654
Deposit for wireless licenses
Other assets 8,536 $818
Total assets 244,180 $5
Current liabilities
Debt maturing within one year 2,645 -$3,844
Accounts payable and accrued liabilities 19,593 $231
Liabilities related to assets held for sale 24 -$439
Other 8,078 -$660
Total current liabilities 30,340 -$4,712
Long-term debt 105,433 $2,193
Employee benefit obligations 26,166 -$3,791
Deferred income taxes 45,964 $480
Non-current liabilities related to assets held for sale 6 -$953
Other liabilities 12,239 $598
Equity
Series preferred stock ($.10 par value; none issued)
Common stock ($.10 par value; 4,242,374,240 shares issued in each period) 424 $0
Contributed capital 11,182 -$14
Reinvested earnings 15,059 $3,813
Accumulated other comprehensive income 2,673 $2,123
Common stock in treasury, at cost -7,263 $153
Deferred compensation - employee stock ownership plans and other 449 $21
Noncontrolling interests 1,508 $94
Total equity 24,032 $6,190
Total liabilities and equity $244,180 $5
Change Change
Percent Dec. 31, 2015 Amount Percent Dec. 31, 2014

-35.57% $4,470 -$6,128 -57.82% $10,598

-100.00% 350 -$205 -36.94% 555
30.14% 13,457 -$536 -3.83% 13,993
-3.99% 1,252 $99 8.59% 1,153
11.36% 792 $240 43.48% 552
92.63% 2,034 -$614 -23.19% 2,648
18.07% 22,355 -$7,144 -24.22% 29,499
5.47% 220,163 -$10,345 -4.49% 230,508
7.94% 136,622 -$3,939 -2.80% 140,561
1.45% 83,541 -$6,406 -7.12% 89,947
39.45% 796 -$6 -0.75% 802
0.11% 86,575 $11,234 14.91% 75,341
7.40% 25,331 $692 2.81% 24,639
17.19% 7,592 $1,864 32.54% 5,728
-94.03% 10,267 $10,267 0.00%
-$921 921
10.60% 7,718 $1,979 34.48% 5,739
0.00% 244,175 $11,559 4.97% 232,616

-59.24% 6,489 $3,754 137.26% 2,735

1.19% 19,362 $2,682 16.08% 16,680
-94.82% 463 $463
-7.55% 8,738 $166 1.94% 8,572
-13.44% 35,052 $7,065 25.24% 27,987
2.12% 103,240 -$7,296 -6.60% 110,536
-12.65% 29,957 -$3,323 -9.98% 33,280
1.06% 45,484 $3,921 9.43% 41,563
-99.37% 959 $959
5.14% 11,641 $6,067 108.84% $5,574

0.00% 424 $0 0.00% $424

-0.13% 11,196 $41 0.37% 11,155
33.91% 11,246 $8,799 359.58% 2,447
386.00% 550 -$561 -50.50% 1,111
-2.06% -7,416 -$4,153 127.28% -3,263
4.91% 428 $4 0.94% 424
6.65% 1,414 $36 2.61% 1,378
34.69% 17,842 $4,166 30.46% 13,676
0.00% $244,175 $11,559 4.97% $232,616
ANNUAL HORIZONTAL ANALYSIS - VERIZON (VT)
Consolidated Statements of Cash Flows - USD ($) $ in Millions

Cash Flows from Operating Activities

Net Income
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense
Employee retirement benefits
Deferred income taxes
Provision for uncollectible accounts
Equity in losses (earnings) of unconsolidated businesses, net of dividends received
Changes in current assets and liabilities, net of effects from acquisition/disposition of businesses
Accounts receivable
Inventories
Other assets
Accounts payable and accrued liabilities
Other, net
Net cash provided by operating activities
Cash Flows from Investing Activities
Capital expenditures (including capitalized software)
Acquisitions of businesses, net of cash acquired
Acquisitions of wireless licenses
Proceeds from dispositions of wireless licenses
Proceeds from dispositions of businesses
Other, net
Net cash used in investing activities
Cash Flows from Financing Activities
Proceeds from long-term borrowings
Proceeds from asset-backed long-term borrowings
Repayments of long-term borrowings and capital lease obligations
Decrease in short-term obligations, excluding current maturities
Dividends paid
Proceeds from sale of common stock
Purchase of common stock for treasury
Acquisition of noncontrolling interest
Other, net
Net cash used in financing activities
Decrease in cash and cash equivalents
Cash and cash equivalents, beginning of period
Cash and cash equivalents, end of period
 12 Months Ended
Dec. 31, 2016 Change Dec. 31, 2015 Change Dec. 31, 2014
Amount Percent Amount Percent

$13,608 -$4,767 -25.94% $18,375 $6,419 53.69% $11,956

15,928 -$89 -0.56% 16,017 -$516 -3.12% 16,533

2,705 $4,452 -254.84% -1,747 -$9,877 -121.49% 8,130
-1,063 -$4,579 -130.23% 3,516 $3,608 -3921.74% -92
1,420 -$190 -11.80% 1,610 $515 47.03% 1,095
138 $11 8.66% 127 $1,870 -107.29% -1,743

-5,067 -$4,122 436.19% -945 $1,800 -65.57% -2,745

61 $160 -161.62% -99 $33 -25.00% -132
449 -$493 -52.34% 942 $1,637 -235.54% -695
-1,079 -$3,624 -142.40% 2,545 $1,133 80.24% 1,412
-4,385 -$2,974 210.77% -1,411 $1,677 -54.31% -3,088
22,715 -$16,215 -41.65% 38,930 $8,299 27.09% 30,631

-17,059 $716 -4.03% -17,775 -$584 3.40% -17,191

-3,765 -$220 6.21% -3,545 -$3,363 1847.80% -182
-534 $9,408 -94.63% -9,942 -$9,588 2708.47% -354
2,367
9,882 $9,834 20487.50% 48 -$72 -60.00% 120
493 -$678 -57.90% 1,171 $1,787 -290.10% -616
-10,983 $19,060 -63.44% -30,043 -$14,187 89.47% -15,856

12,964 $6,297 94.45% 6,667 -$24,300 -78.47% 30,967

4,986 $4,986
-19,159 -$9,819 105.13% -9,340 $8,329 -47.14% -17,669
-149 $195 -56.69% -344 $131 -27.58% -475
-9,262 -$724 8.48% -8,538 -$735 9.42% -7,803
3 -$37 -92.50% 40 $6 17.65% 34
$5,134 -100.00% -5,134 -$5,134
$58,886 -100.00% -58,886
-2,705 -$4,339 -265.54% 1,634 $5,507 -142.19% -3,873
-13,322 $1,693 -11.28% -15,015 $42,690 -73.98% -57,705
-1,590 $4,538 -74.05% -6,128 $36,802 -85.73% -42,930
4,470 -$6,128 -57.82% 10,598 -$42,930 -80.20% 53,528
$2,880 -$1,590 -35.57% $4,470 -$6,128 -57.82% $10,598
VERTICAL COMMON-SIZE ANALYSIS - VERIZON (VT) 12 Months Ende
Consolidated Statements of Income - USD ($) shares/$ in Millions Dec. 31, 2016 Percent

Operating Revenues
Service revenues and other $108,468
Wireless equipment revenues 17,512
Total Operating Revenues 125,980 100.00%
Operating Expenses
Cost of services (exclusive of items shown below) 29,186 23.17%
Wireless cost of equipment 22,238 17.65%
Selling, general and administrative expense, net 31,569 25.06%
Depreciation and amortization expense 15,928 12.64%
Total Operating Expenses 98,921 78.52%
Operating Income 27,059 21.48%
Equity in (losses) earnings of unconsolidated businesses -98 -0.08%
Other income and (expense), net -1,599 -1.27%
Interest expense -4,376 -3.47%
Income Before Provision For Income Taxes 20,986 16.66%
Provision for income taxes -7,378 -5.86%
Net Income 13,608 10.80%
Net income attributable to noncontrolling interests 481 0.38%
Net income attributable to Verizon $13,127 10.42%
Basic Earnings Per Common Share
Net income attributable to Verizon $3.22
Weighted-average shares outstanding (in millions) 4,080
Diluted Earnings Per Common Share
Net income attributable to Verizon $3.21
Weighted-average shares outstanding (in millions) 4,086
 12 Months Ended
Dec. 31, 2015 Percent Dec. 31, 2014 Percent

$114,696 $116,122
16,924 10,957
131,620 100.00% 127,079 100.00%

29,438 22.37% 28,306 22.27%

23,119 17.56% 21,625 17.02%
29,986 22.78% 41,016 32.28%
16,017 12.17% 16,533 13.01%
98,560 74.88% 107,480 84.58%
33,060 25.12% 19,599 15.42%
-86 -0.07% 1,780 1.40%
186 0.14% -1,194 -0.94%
-4,920 -3.74% -4,915 -3.87%
28,240 21.46% 15,270 12.02%
-9,865 -7.50% -3,314 -2.61%
18,375 13.96% 11,956 9.41%
496 0.38% 2,331 1.83%
$17,879 13.58% $9,625 7.57%

$4.38 $2.42
4,085 3,974

$4.37 $2.42
4,093 3,981
VERTICAL COMMON-SIZE ANALYSIS - VERIZON (VT)
Consolidated Balance Sheets - USD ($) $ in Millions Dec. 31, 2016 Percent
Current assets
Cash and cash equivalents $2,880 1.18%
Short-term investments 0.00%
Accounts receivable, net of allowances of $845 and $882 and $739 17,513 7.17%
Inventories 1,202 0.49%
Assets held for sale 882 0.36%
Prepaid expenses and other 3,918 1.60%
Total current assets 26,395 10.81%
Plant, property and equipment 232,215 95.10%
Less accumulated depreciation 147,464 60.39%
Plant, property and equipment, net 84,751 34.71%
Investments in unconsolidated businesses 1,110 0.45%
Wireless licenses 86,673 35.50%
Goodwill 27,205 11.14%
Other intangible assets, net 8,897 3.64%
Non-current assets held for sale 613 0.25%
Deposit for wireless licenses 0.00%
Other assets 8,536 3.50%
Total assets 244,180 100.00%
Current liabilities
Debt maturing within one year 2,645 1.08%
Accounts payable and accrued liabilities 19,593 8.02%
Liabilities related to assets held for sale 24 0.01%
Other 8,078 3.31%
Total current liabilities 30,340 12.43%
Long-term debt 105,433 43.18%
Employee benefit obligations 26,166 10.72%
Deferred income taxes 45,964 18.82%
Non-current liabilities related to assets held for sale 6 0.00%
Other liabilities 12,239 5.01%
Equity
Series preferred stock ($.10 par value; none issued)
Common stock ($.10 par value; 4,242,374,240 shares issued in each period) 424 0.17%
Contributed capital 11,182 4.58%
Reinvested earnings 15,059 6.17%
Accumulated other comprehensive income 2,673 1.09%
Common stock in treasury, at cost -7,263 -2.97%
Deferred compensation - employee stock ownership plans and other 449 0.18%
Noncontrolling interests 1,508 0.62%
Total equity 24,032 9.84%
Total liabilities and equity $244,180 100.00%
Dec. 31, 2015 Percent Dec. 31, 2014 Percent

$4,470 1.83% $10,598 4.56%

350 0.14% 555 0.24%
13,457 5.51% 13,993 6.02%
1,252 0.51% 1,153 0.50%
792 0.32% 552 0.24%
2,034 0.83% 2,648 1.14%
22,355 9.16% 29,499 12.68%
220,163 90.17% 230,508 99.09%
136,622 55.95% 140,561 60.43%
83,541 34.21% 89,947 38.67%
796 0.33% 802 0.34%
86,575 35.46% 75,341 32.39%
25,331 10.37% 24,639 10.59%
7,592 3.11% 5,728 2.46%
10,267 4.20% 0.00%
0.00% 921 0.40%
7,718 3.16% 5,739 2.47%
244,175 100.00% 232,616 100.00%

6,489 2.66% 2,735 1.18%

19,362 7.93% 16,680 7.17%
463 0.19% 0.00%
8,738 3.58% 8,572 3.69%
35,052 14.36% 27,987 12.03%
103,240 42.28% 110,536 47.52%
29,957 12.27% 33,280 14.31%
45,484 18.63% 41,563 17.87%
959 0.39% 0.00%
11,641 4.77% $5,574 2.40%

424 0.17% $424 0.18%

11,196 4.59% 11,155 4.80%
11,246 4.61% 2,447 1.05%
550 0.23% 1,111 0.48%
-7,416 -3.04% -3,263 -1.40%
428 0.18% 424 0.18%
1,414 0.58% 1,378 0.59%
17,842 7.31% 13,676 5.88%
$244,175 100.00% $232,616 100.00%
VERTICAL COMMON-SIZE ANALYSIS - VERIZON (VT)
Consolidated Statements of Cash Flows - USD ($) $ in Millions

Cash Flows from Operating Activities

Net Income
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense
Employee retirement benefits
Deferred income taxes
Provision for uncollectible accounts
Equity in losses (earnings) of unconsolidated businesses, net of dividends received
Changes in current assets and liabilities, net of effects from acquisition/disposition of businesses
Accounts receivable
Inventories
Other assets
Accounts payable and accrued liabilities
Other, net
Net cash provided by operating activities
Cash Flows from Investing Activities
Capital expenditures (including capitalized software)
Acquisitions of businesses, net of cash acquired
Acquisitions of wireless licenses
Proceeds from dispositions of wireless licenses
Proceeds from dispositions of businesses
Other, net
Net cash used in investing activities
Cash Flows from Financing Activities
Proceeds from long-term borrowings
Proceeds from asset-backed long-term borrowings
Repayments of long-term borrowings and capital lease obligations
Decrease in short-term obligations, excluding current maturities
Dividends paid
Proceeds from sale of common stock
Purchase of common stock for treasury
Acquisition of noncontrolling interest
Other, net
Net cash used in financing activities
Decrease in cash and cash equivalents
Cash and cash equivalents, beginning of period
Cash and cash equivalents, end of period
 12 Months Ended
Dec. 31, 2016 Dec. 31, 2015 Dec. 31, 2014
Percent Percent Percent

$13,608 59.91% $18,375 47.20% $11,956 39.03%

15,928 70.12% 16,017 41.14% 16,533 53.97%

2,705 11.91% -1,747 -4.49% 8,130 26.54%
-1,063 -4.68% 3,516 9.03% -92 -0.30%
1,420 6.25% 1,610 4.14% 1,095 3.57%
138 0.61% 127 0.33% -1,743 -5.69%

-5,067 -22.31% -945 -2.43% -2,745 -8.96%

61 0.27% -99 -0.25% -132 -0.43%
449 1.98% 942 2.42% -695 -2.27%
-1,079 -4.75% 2,545 6.54% 1,412 4.61%
-4,385 -19.30% -1,411 -3.62% -3,088 -10.08%
22,715 100.00% 38,930 100.00% 30,631 100.00%

-17,059 155.32% -17,775 59.17% -17,191 108.42%

-3,765 34.28% -3,545 11.80% -182 1.15%
-534 4.86% -9,942 33.09% -354 2.23%
2,367 -14.93%
9,882 -89.98% 48 -0.16% 120 -0.76%
493 -4.49% 1,171 -3.90% -616 3.88%
-10,983 100.00% -30,043 100.00% -15,856 100.00%

12,964 -97.31% 6,667 -44.40% 30,967 -53.66%

4,986 -37.43%
-19,159 143.81% -9,340 62.20% -17,669 30.62%
-149 1.12% -344 2.29% -475 0.82%
-9,262 69.52% -8,538 56.86% -7,803 13.52%
3 -0.02% 40 -0.27% 34 -0.06%
-5,134 34.19%
-58,886 102.05%
-2,705 20.30% 1,634 -10.88% -3,873 6.71%
-13,322 100.00% -15,015 100.00% -57,705 100.00%
-1,590 -6,128 -42,930
4,470 10,598 53,528
$2,880 $4,470 $10,598
ANNUAL HORIZONTAL ANALYSIS - AT&T (T)
Consolidated Statements Of Income - USD ($) $ in Millions Dec. 31, 2016

Operating Revenues
Service $148,884
Equipment 14,902
Total operating revenues 163,786
Operating Expenses
Equipment 18,757
Broadcast, programming and operations 19,851
Other cost of services (exclusive of depreciation and amortization shown separately below) 38,276
Selling, general and administrative 36,347
Asset abandonments and impairments 361
Depreciation and amortization 25,847
Total operating expenses 139,439
Operating Income 24,347
Other Income (Expense)
Interest expense -4,910
Equity in net income of affiliates 98
Other income (expense) - net 277
Total other income (expense) -4,535
Income Before Income Taxes 19,812
Income tax expense 6,479
Net Income 13,333
Less: Net Income Attributable to Noncontrolling Interest -357
Net Income Attributable to AT&T $12,976
Basic Earnings Per Share Attributable to AT&T $2.10
Diluted Earnings Per Share Attributable to AT&T $2.10
 12 Months Ended
Change Dec. 31, 2015 Change Dec. 31, 2014
Amount Percent Amount Percent

$17,207 13.07% $131,677 $13,240 11.18% $118,437

-$222 -1.47% 15,124 $1,114 7.95% 14,010
$16,985 11.57% 146,801 $14,354 10.84% 132,447

-$511 -2.65% 19,268 $322 1.70% 18,946

$7,855 65.48% 11,996 $7,921 194.38% 4,075
$2,494 6.97% 35,782 -$1,342 -3.61% 37,124
$3,428 10.41% 32,919 -$6,778 -17.07% 39,697
$326 931.43% 35 -$2,085 -98.35% 2,120
$3,831 17.40% 22,016 $3,743 20.48% 18,273
$17,423 14.28% 122,016 $1,781 1.48% 120,235
-$438 -1.77% 24,785 $12,573 102.96% 12,212

-$790 19.17% -4,120 -$507 14.03% -3,613

$19 24.05% 79 -$96 -54.86% 175
$329 -632.69% -52 -$1,633 -103.29% 1,581
-$442 10.80% -4,093 -$2,236 120.41% -1,857
-$880 -4.25% 20,692 $10,337 99.83% 10,355
-$526 -7.51% 7,005 $3,386 93.56% 3,619
-$354 -2.59% 13,687 $6,951 103.19% 6,736
-$15 4.39% -342 -$48 16.33% -294
-$369 -2.77% $13,345 $6,903 107.16% $6,442
-$0.27 -11.39% $2.37 $1.13 91.13% $1.24
-$0.27 -11.39% $2.37 $1.13 91.13% $1.24
ANNUAL HORIZONTAL ANALYSIS - AT&T (T)
Consolidated Balance Sheets - USD ($) $ in Millions
Current Assets
Cash and cash equivalents
Accounts receivable - net of allowances for doubtful accounts of $661 and $704 and $454
Prepaid expenses
Other current assets
Total current assets
Property, Plant and Equipment - Net
Goodwill
Licenses
Customer Lists and Relationships - Net
Other Intangible Assets - Net
Investments in Equity Affiliates
Other Assets
Total Assets
Current Liabilities
Debt maturing within one year
Accounts payable and accrued liabilities
Advanced billings and customer deposits
Accrued taxes
Dividends payable
Total current liabilities
Long-Term Debt
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes
Postemployment benefit obligation
Other noncurrent liabilities
Total deferred credits and other noncurrent liabilities
Stockholders' Equity
Common stock ($1 par value, 14,000,000,000 authorized at December 31, 2016 and 2015 and 2014:
issued 6,495,231,088 at December 31, 2016 and 2015 and 2014)
Additional paid-in capital
Retained earnings
Treasury stock (356,237,141 at December 31, 2016 and 350,291,239 at December 31, 2015 and
1,308,318,131 at December 31, 2014, at cost)
Accumulated other comprehensive income
Noncontrolling interest
Total stockholders' equity
Total Liabilities and Stockholders' Equity
Dec. 31, 2016 Change Dec. 31, 2015 Change Dec. 31, 2014
Amount Percent Amount Percent

$5,788 $667 13.02% $5,121 -$3,482 -40.47% $8,603

16,794 $262 1.58% 16,532 $2,005 13.80% 14,527
1,555 $483 45.06% 1,072 $241 29.00% 831
14,232 $965 7.27% 13,267 $3,622 37.55% 9,645
38,369 $2,377 6.60% 35,992 $2,386 7.10% 33,606
124,899 $449 0.36% 124,450 $11,552 10.23% 112,898
105,207 $639 0.61% 104,568 $34,876 50.04% 69,692
94,176 $1,083 1.16% 93,093 $32,269 53.05% 60,824
14,243 -$3,965 -21.78% 18,208 $17,396 2142.36% 812
8,441 -$968 -10.29% 9,409 $4,082 76.63% 5,327
1,674 $68 4.23% 1,606 $1,356 542.40% 250
16,812 $1,466 9.55% 15,346 $1,921 14.31% 13,425
403,821 $1,149 0.29% 402,672 $105,838 35.66% 296,834

9,832 $2,196 28.76% 7,636 $1,580 26.09% 6,056

31,138 $766 2.52% 30,372 $6,780 28.74% 23,592
4,519 -$163 -3.48% 4,682 $577 14.06% 4,105
2,079 -$97 -4.46% 2,176 $1,085 99.45% 1,091
3,008 $58 1.97% 2,950 $512 21.00% 2,438
50,576 $2,760 5.77% 47,816 $10,534 28.25% 37,282
113,681 -$4,834 -4.08% 118,515 $42,737 56.40% 75,778

60,128 $3,947 7.03% 56,181 $17,745 46.17% 38,436

33,578 -$684 -2.00% 34,262 -$2,817 -7.60% 37,079
21,748 -$510 -2.29% 22,258 $4,269 23.73% 17,989
115,454 $2,753 2.44% 112,701 $19,197 20.53% 93,504

6,495 $0 0.00% 6,495 $0 0.00% 6,495

89,604 -$159 -0.18% 89,763 -$1,345 -1.48% 91,108
34,734 $1,063 3.16% 33,671 $2,590 8.33% 31,081

-12,659 -$67 0.53% -12,592 $34,437 -73.23% -47,029

4,961 -$373 -6.99% 5,334 -$2,727 -33.83% 8,061
975 $6 0.62% 969 $415 74.91% 554
124,110 $470 0.38% 123,640 $33,370 36.97% 90,270
$403,821 $1,149 0.29% $402,672 $105,838 35.66% $296,834
ANNUAL HORIZONTAL ANALYSIS - AT&T (T)
Consolidated Statements Of Cash Flows - USD ($) $ in Millions Dec. 31, 2016

Operating Activities
Net Income $13,333
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 25,847
Undistributed earnings from investments in equity affiliates -37
Provision for uncollectible accounts 1,474
Deferred income tax expense 2,947
Net (gain) loss from sale of investments, net of impairments -169
Actuarial loss (gain) on pension and postretirement benefits 1,024
Asset abandonments and impairments 361
Changes in operating assets and liabilities:
Accounts receivable -1,003
Other current assets 1,708
Accounts payable and accrued liabilities 118
Equipment installment receivables and related sales -576
Deferred fulfillment costs -2,359
Retirement benefit funding -910
Other - net -2,414
Total adjustments 26,011
Net Cash Provided by Operating Activities 39,344
Investing Activities
Purchase of property and equipment -21,516
Interest during construction -892
Acquisitions, net of cash acquired -2,959
Disposition 646
Sales (purchases) of securities, net 506
Other 0
Net Cash Used in Investing Activities -24,215
Financing Activities
Net change in short-term borrowings with original maturities of three months or less 0
Issuance of long-term debt 10,140
Repayment of long-term debt -10,823
Issuance of other long-term financing obligations 0
Purchase of treasury stock -512
Issuance of treasury stock 146
Dividends paid -11,797
Other -1,616
Net Cash (Used in) Provided by Financing Activities -14,462
Net increase (decrease) in cash and cash equivalents 667
Cash and cash equivalents beginning of year 5,121
Cash and Cash Equivalents End of Year $5,788
 12 Months Ended
Change Dec. 31, 2015 Change Dec. 31, 2014
Amount Percent Amount Percent

-$354 -2.59% $13,687 $6,951 103.19% $6,736

$3,831 17.40% 22,016 $3,743 20.48% 18,273

$12 -24.49% -49 -$22 81.48% -27
$58 4.10% 1,416 $384 37.21% 1,032
-$1,170 -28.42% 4,117 $2,169 111.34% 1,948
-$260 -285.71% 91 $1,552 -106.23% -1,461
$3,176 -147.58% -2,152 -$10,021 -127.35% 7,869
$326 931.43% 35 -$2,085 -98.35% 2,120

-$1,033 -3443.33% 30 $723 -104.33% -693

$2,890 -244.50% -1,182 -$164 16.11% -1,018
-$1,236 -91.29% 1,354 -$956 -41.39% 2,310
$2,447 -80.95% -3,023 $2,020 -40.06% -5,043
-$922 64.16% -1,437 -$1,090 314.12% -347
-$175 23.81% -735 -$175 31.25% -560
-$4,126 -241.00% 1,712 $1,513 760.30% 199
$3,818 17.20% 22,193 -$2,409 -9.79% 24,602
$3,464 9.65% 35,880 $4,542 14.49% 31,338

-$2,298 11.96% -19,218 $1,981 -9.34% -21,199

-$95 11.92% -797 -$563 240.60% -234
$27,800 -90.38% -30,759 -$27,618 879.27% -3,141
$563 678.31% 83 -$8,040 -98.98% 8,123
-$1,039 -67.25% 1,545 $3,435 -181.75% -1,890
-$2 -100.00% 2 -$2 -50.00% 4
$24,929 -50.73% -49,144 -$30,807 168.00% -18,337

$1 -100.00% -1 $15 -93.75% -16

-$23,829 -70.15% 33,969 $18,043 113.29% 15,926
-$781 7.78% -10,042 $358 -3.44% -10,400
$0 0 -$107 -100.00% 107
-$243 90.33% -269 $1,348 -83.36% -1,617
$3 2.10% 143 $104 266.67% 39
-$1,597 15.66% -10,200 -$648 6.78% -9,552
$2,202 -57.67% -3,818 -$1,594 71.67% -2,224
-$24,244 -247.84% 9,782 $17,519 -226.43% -7,737
$4,149 -119.16% -3,482 -$8,746 -166.15% 5,264
-$3,482 -40.47% 8,603 $5,264 157.65% 3,339
$667 13.02% $5,121 -$3,482 -40.47% $8,603
VERTICAL COMMON-SIZE ANALYSIS - AT&T (T)
Consolidated Statements Of Income - USD ($) $ in Millions Dec. 31, 2016

Operating Revenues
Service $148,884
Equipment 14,902
Total operating revenues 163,786
Operating Expenses
Equipment 18,757
Broadcast, programming and operations 19,851
Other cost of services (exclusive of depreciation and amortization shown separately below) 38,276
Selling, general and administrative 36,347
Asset abandonments and impairments 361
Depreciation and amortization 25,847
Total operating expenses 139,439
Operating Income 24,347
Other Income (Expense)
Interest expense -4,910
Equity in net income of affiliates 98
Other income (expense) - net 277
Total other income (expense) -4,535
Income Before Income Taxes 19,812
Income tax expense 6,479
Net Income 13,333
Less: Net Income Attributable to Noncontrolling Interest -357
Net Income Attributable to AT&T $12,976
Basic Earnings Per Share Attributable to AT&T $2.10
Diluted Earnings Per Share Attributable to AT&T $2.10
 12 Months Ended
Dec. 31, 2015 Dec. 31, 2014
Percent Percent Percent

$131,677 $118,437
15,124 14,010
100.00% 146,801 100.00% 132,447 100.00%

11.45% 19,268 13.13% 18,946 14.30%

12.12% 11,996 8.17% 4,075 3.08%
23.37% 35,782 24.37% 37,124 28.03%
22.19% 32,919 22.42% 39,697 29.97%
0.22% 35 0.02% 2,120 1.60%
15.78% 22,016 15.00% 18,273 13.80%
85.13% 122,016 83.12% 120,235 90.78%
14.87% 24,785 16.88% 12,212 9.22%

-3.00% -4,120 -2.81% -3,613 -2.73%

0.06% 79 0.05% 175 0.13%
0.17% -52 -0.04% 1,581 1.19%
-2.77% -4,093 -2.79% -1,857 -1.40%
12.10% 20,692 14.10% 10,355 7.82%
3.96% 7,005 4.77% 3,619 2.73%
8.14% 13,687 9.32% 6,736 5.09%
-0.22% -342 -0.23% -294 -0.22%
7.92% $13,345 9.09% $6,442 4.86%
$2.37 $1.24
$2.37 $1.24
VERTICAL COMMON-SIZE ANALYSIS - AT&T (T)
Consolidated Balance Sheets - USD ($) $ in Millions
Current Assets
Cash and cash equivalents
Accounts receivable - net of allowances for doubtful accounts of $661 and $704
Prepaid expenses
Other current assets
Total current assets
Property, Plant and Equipment - Net
Goodwill
Licenses
Customer Lists and Relationships - Net
Other Intangible Assets - Net
Investments in Equity Affiliates
Other Assets
Total Assets
Current Liabilities
Debt maturing within one year
Accounts payable and accrued liabilities
Advanced billings and customer deposits
Accrued taxes
Dividends payable
Total current liabilities
Long-Term Debt
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes
Postemployment benefit obligation
Other noncurrent liabilities
Total deferred credits and other noncurrent liabilities
Stockholders' Equity
Common stock ($1 par value, 14,000,000,000 authorized at December 31, 2016 and 2015 and 2014:
issued 6,495,231,088 at December 31, 2016 and 2015 and 2014)
Additional paid-in capital
Retained earnings
Treasury stock (356,237,141 at December 31, 2016 and 350,291,239 at December 31, 2015 and
1,308,318,131 at December 31, 2014, at cost)
Accumulated other comprehensive income
Noncontrolling interest
Total stockholders' equity
Total Liabilities and Stockholders' Equity
Dec. 31, 2016 Dec. 31, 2015 Dec. 31, 2014
Percent Percent Percent

$5,788 1.43% $5,121 1.27% $8,603 2.90%

16,794 4.16% 16,532 4.11% 14,527 4.89%
1,555 0.39% 1,072 0.27% 831 0.28%
14,232 3.52% 13,267 3.29% 9,645 3.25%
38,369 9.50% 35,992 8.94% 33,606 11.32%
124,899 30.93% 124,450 30.91% 112,898 38.03%
105,207 26.05% 104,568 25.97% 69,692 23.48%
94,176 23.32% 93,093 23.12% 60,824 20.49%
14,243 3.53% 18,208 4.52% 812 0.27%
8,441 2.09% 9,409 2.34% 5,327 1.79%
1,674 0.41% 1,606 0.40% 250 0.08%
16,812 4.16% 15,346 3.81% 13,425 4.52%
403,821 100.00% 402,672 100.00% 296,834 100.00%

9,832 2.43% 7,636 1.90% 6,056 2.04%

31,138 7.71% 30,372 7.54% 23,592 7.95%
4,519 1.12% 4,682 1.16% 4,105 1.38%
2,079 0.51% 2,176 0.54% 1,091 0.37%
3,008 0.74% 2,950 0.73% 2,438 0.82%
50,576 12.52% 47,816 11.87% 37,282 12.56%
113,681 28.15% 118,515 29.43% 75,778 25.53%

60,128 14.89% 56,181 13.95% 38,436 12.95%

33,578 8.32% 34,262 8.51% 37,079 12.49%
21,748 5.39% 22,258 5.53% 17,989 6.06%
115,454 28.59% 112,701 27.99% 93,504 31.50%

6,495 1.61% 6,495 1.61% 6,495 2.19%

89,604 22.19% 89,763 22.29% 91,108 30.69%
34,734 8.60% 33,671 8.36% 31,081 10.47%

-12,659 -3.13% -12,592 -3.13% -47,029 -15.84%

4,961 1.23% 5,334 1.32% 8,061 2.72%
975 0.24% 969 0.24% 554 0.19%
124,110 30.73% 123,640 30.70% 90,270 30.41%
$403,821 100.00% $402,672 100.00% $296,834 100.00%
1
VERTICAL COMMON-SIZE ANALYSIS - AT&T (T)
Consolidated Statements Of Cash Flows - USD ($) $ in Millions Dec. 31, 2016

Operating Activities
Net Income $13,333
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 25,847
Undistributed earnings from investments in equity affiliates -37
Provision for uncollectible accounts 1,474
Deferred income tax expense 2,947
Net (gain) loss from sale of investments, net of impairments -169
Actuarial loss (gain) on pension and postretirement benefits 1,024
Asset abandonments and impairments 361
Changes in operating assets and liabilities:
Accounts receivable -1,003
Other current assets 1,708
Accounts payable and accrued liabilities 118
Equipment installment receivables and related sales -576
Deferred fulfillment costs -2,359
Retirement benefit funding -910
Other - net -2,414
Total adjustments 26,011
Net Cash Provided by Operating Activities 39,344
Investing Activities
Purchase of property and equipment -21,516
Interest during construction -892
Acquisitions, net of cash acquired -2,959
Disposition 646
Sales (purchases) of securities, net 506
Other 0
Net Cash Used in Investing Activities -24,215
Financing Activities
Net change in short-term borrowings with original maturities of three months or less 0
Issuance of long-term debt 10,140
Repayment of long-term debt -10,823
Issuance of other long-term financing obligations 0
Purchase of treasury stock -512
Issuance of treasury stock 146
Dividends paid -11,797
Other -1,616
Net Cash (Used in) Provided by Financing Activities -14,462
Net increase (decrease) in cash and cash equivalents 667
Cash and cash equivalents beginning of year 5,121
Cash and Cash Equivalents End of Year $5,788
 12 Months Ended
Dec. 31, 2015 Dec. 31, 2014
Percent Percent Percent

33.89% $13,687 38.15% $6,736 21.49%

65.69% 22,016 61.36% 18,273 58.31%

-0.09% -49 -0.14% -27 -0.09%
3.75% 1,416 3.95% 1,032 3.29%
7.49% 4,117 11.47% 1,948 6.22%
-0.43% 91 0.25% -1,461 -4.66%
2.60% -2,152 -6.00% 7,869 25.11%
0.92% 35 0.10% 2,120 6.76%

-2.55% 30 0.08% -693 -2.21%

4.34% -1,182 -3.29% -1,018 -3.25%
0.30% 1,354 3.77% 2,310 7.37%
-1.46% -3,023 -8.43% -5,043 -16.09%
-6.00% -1,437 -4.01% -347 -1.11%
-2.31% -735 -2.05% -560 -1.79%
-6.14% 1,712 4.77% 199 0.64%
66.11% 22,193 61.85% 24,602 78.51%
100.00% 35,880 100.00% 31,338 100.00%

88.85% -19,218 39.11% -21,199 115.61%

3.68% -797 1.62% -234 1.28%
12.22% -30,759 62.59% -3,141 17.13%
-2.67% 83 -0.17% 8,123 -44.30%
-2.09% 1,545 -3.14% -1,890 10.31%
0.00% 2 0.00% 4 -0.02%
100.00% -49,144 100.00% -18,337 100.00%

0.00% -1 -0.01% -16 0.21%

-70.11% 33,969 347.26% 15,926 -205.84%
74.84% -10,042 -102.66% -10,400 134.42%
0.00% 0 0.00% 107 -1.38%
3.54% -269 -2.75% -1,617 20.90%
-1.01% 143 1.46% 39 -0.50%
81.57% -10,200 -104.27% -9,552 123.46%
11.17% -3,818 -39.03% -2,224 28.74%
100.00% 9,782 100.00% -7,737 100.00%
-3,482 5,264
8,603 3,339
$5,121 $8,603