Consolidated Statements of Income

Dollars in millions except per share amounts

2019 2018
Operating Revenues
Service $ 163,499.00 $ 152,345.00
Equipment $ 17,694.00 $ 18,411.00
Total operating revenues $ 181,193.00 $ 170,756.00
Operating Expenses
Cost of revenues
Equipment $ 18,653.00 $ 19,786.00
Broadcast, programming and operations $ 31,132.00 $ 26,727.00
Other cost of revenues (exclusive of depreciation and amortization s $ 34,356.00 $ 32,906.00
Selling, general and administrative $ 39,422.00 $ 36,765.00
Asset abandonments and impairments $ 1,458.00 $ 46.00
Depreciation and amortization $ 28,217.00 $ 28,430.00
Total operating expenses $ 153,238.00 $ 144,660.00
Operating Income $ 27,955.00 $ 26,096.00
Other Income (Expense)
Interest expense $ (8,422.00) $ (7,957.00)
Equity in net income (loss) of affiliates $ 6.00 $ (48.00)
Other income (expense) – net $ (1,071.00) $ 6,782.00
Total other income (expense) $ (9,487.00) $ (1,223.00)
Income Before Income Taxes $ 18,468.00 $ 24,873.00
Income tax (benefit) expense $ 3,493.00 $ 4,920.00
Net Income $ 14,975.00 $ 19,953.00
Less: Net Income Attributable to Noncontrolling Interest $ (1,072.00) $ (583.00)
Net Income Attributable to AT&T $ 13,903.00 $ 19,370.00
Less: Preferred Stock Dividends $ (3.00) $ -
Net Income Attributable to Common Stock $ 13,900.00 $ 19,370.00
Basic Earnings Per Share Attributable to Common Stock $ 1.90 $ 2.85
Diluted Earnings Per Share Attributable to Common Stock $ 1.89 $ 2.85

Basic Shares Outstanding 7319 6778

Shares Oustanding 7348 6806

Book Value per share $ 27.84 $ 26.63

31.36 33.53
33.51 30.63
37.84 32.53
39.08 28.06
Stock price $ 35.45 $ 31.19
 2017

$ 145,597.00
$ 14,949.00
$ 160,546.00

$ 18,709.00
$ 21,159.00
$ 37,942.00
$ 35,465.00
$ 2,914.00
$ 24,387.00
$ 140,576.00
$ 19,970.00

$ (6,300.00)
$ (128.00)
$ 1,597.00
$ (4,831.00)
$ 15,139.00
$ (14,708.00)
$ 29,847.00
$ (397.00)
$ 29,450.00
$ -
$ 29,450.00
$ 4.77
$ 4.76

6164
6183

$ 23.13

37.14
34.14
35.91
36.09
$ 35.82
 2019
Operating Revenues
Service $ 163,499.00
Equipment $ 17,694.00
Total operating revenues $ 181,193.00
Operating Expenses
Cost of revenues
Equipment $ 18,653.00
Broadcast, programming and operations $ 31,132.00
Other cost of revenues (exclusive of depreciation and amortization shown separately below $ 34,356.00
Selling, general and administrative $ 39,422.00
Asset abandonments and impairments $ 1,458.00
Depreciation and amortization $ 28,217.00
Total operating expenses $ 153,238.00
Operating Income $ 27,955.00
Other Income (Expense)
Interest expense $ (8,422.00)
Equity in net income (loss) of affiliates $ 6.00
Other income (expense) – net $ (1,071.00)
Total other income (expense) $ (9,487.00)
Income Before Income Taxes $ 18,468.00
Income tax (benefit) expense $ 3,493.00
Net Income $ 14,975.00
 2018 2017 2020 2021

$ 152,345.00 $ 145,597.00 $ 173,273.18 $ 183,631.66

$ 18,411.00 $ 14,949.00 $ 19,398.32 $ 21,266.79
$ 170,756.00 $ 160,546.00 $ 192,671.49 $ 204,898.46

$ 19,786.00 $ 18,709.00 $ 21,537.59 $ 22,904.37

$ 26,727.00 $ 21,159.00 $ 29,551.46 $ 31,426.80
$ 32,906.00 $ 37,942.00 $ 39,731.99 $ 42,253.39
$ 36,765.00 $ 35,465.00 $ 41,988.18 $ 44,652.75
$ 46.00 $ 2,914.00 $ 1,699.79 $ 1,807.66
$ 28,430.00 $ 24,387.00 $ 30,450.08 $ 32,382.44
$ 144,660.00 $ 140,576.00 $ 164,959.08 $ 175,427.41
$ 26,096.00 $ 19,970.00 $ 27,712.41 $ 29,471.04

$ (7,957.00) $ (6,300.00) $ (10,732.62) $ (11,992.99)

$ (48.00) $ (128.00) $ (67.13) $ (71.39)
$ 6,782.00 $ 1,597.00 $ 2,810.05 $ 2,988.37
$ (1,223.00) $ (4,831.00) $ (7,989.71) $ (9,076.01)
$ 24,873.00 $ 15,139.00 $ 19,722.70 $ 20,395.03
$ 4,920.00 $ (14,708.00) $ 6,902.95 $ 7,138.26
$ 19,953.00 $ 29,847.00 $ 12,819.76 $ 13,256.77
 2022 2023 2024 2019 2018 2017

$ 194,609.39 $ 206,243.39 $ 218,572.88 7.32% 4.63%

$ 23,315.25 $ 25,561.01 $ 28,023.09 -3.89% 23.16%
$ 217,924.64 $ 231,804.40 $ 246,595.96

$ 24,360.49 $ 25,912.02 $ 27,565.48

$ 33,424.73 $ 35,553.57 $ 37,822.26
$ 44,939.60 $ 47,801.83 $ 50,852.09
$ 47,491.50 $ 50,516.26 $ 53,739.73
$ 1,922.58 $ 2,045.03 $ 2,175.52
$ 34,441.12 $ 36,634.69 $ 38,972.37
$ 186,580.01 $ 198,463.41 $ 211,127.47
$ 31,344.63 $ 33,340.99 $ 35,468.50

$ (13,401.37) $ (14,975.15) $ (16,733.73)

$ (75.93) $ (80.77) $ (85.92)
$ 3,178.36 $ 3,380.79 $ 3,596.52
$ (10,298.95) $ (11,675.12) $ (13,223.13)
$ 21,045.68 $ 21,665.86 $ 22,245.36
$ 7,365.99 $ 7,583.05 $ 7,785.88
$ 13,679.69 $ 14,082.81 $ 14,459.49
5.98%
9.63%
 2019
Operating Revenues
Service $ 163,499.00
Equipment $ 17,694.00
Total operating revenues $ 181,193.00
Operating Expenses
Cost of revenues
Equipment $ 18,653.00
Broadcast, programming and operations $ 31,132.00
Other cost of revenues (exclusive of depreciation and amortization shown separately below $ 34,356.00
Selling, general and administrative $ 39,422.00
Asset abandonments and impairments $ 1,458.00
Depreciation and amortization $ 28,217.00
Total operating expenses $ 153,238.00
Operating Income $ 27,955.00
Other Income (Expense)
Interest expense $ (8,422.00)
Equity in net income (loss) of affiliates $ 6.00
Other income (expense) – net $ (1,071.00)
Total other income (expense) $ (9,487.00)
Income Before Income Taxes $ 18,468.00
Income tax (benefit) expense $ 3,493.00
Net Income $ 14,975.00

2019
A/R $ 22,636.00
Sales $ 181,193.00

A/P and accrued liabilities $ 45,956.00

COGS $ 84,141.00

Advanced billings and customer deposits $ 6,124.00

Sales $ 181,193.00

Accrued Taxes $ 1,212.00

Sales $ 181,193.00
 2018 2017 2020 2021

$ 152,345.00 $ 145,597.00 $ 173,273.18 $ 183,631.66

$ 18,411.00 $ 14,949.00 $ 19,398.32 $ 21,266.79
$ 170,756.00 $ 160,546.00 $ 192,671.49 $ 204,898.46

$ 19,786.00 $ 18,709.00 $ 21,537.59 $ 22,904.37

$ 26,727.00 $ 21,159.00 $ 29,551.46 $ 31,426.80
$ 32,906.00 $ 37,942.00 $ 39,731.99 $ 42,253.39
$ 36,765.00 $ 35,465.00 $ 41,988.18 $ 44,652.75
$ 46.00 $ 2,914.00 $ 1,699.79 $ 1,807.66
$ 28,430.00 $ 24,387.00 $ 30,450.08 $ 32,382.44
$ 144,660.00 $ 140,576.00 $ 164,959.08 $ 175,427.41
$ 26,096.00 $ 19,970.00 $ 27,712.41 $ 29,471.04

$ (7,957.00) $ (6,300.00) $ (10,732.62) $ (11,992.99)

$ (48.00) $ (128.00) $ (67.13) $ (71.39)
$ 6,782.00 $ 1,597.00 $ 2,810.05 $ 2,988.37
$ (1,223.00) $ (4,831.00) $ (7,989.71) $ (9,076.01)
$ 24,873.00 $ 15,139.00 $ 19,722.70 $ 20,395.03
$ 4,920.00 $ (14,708.00) $ 6,902.95 $ 7,138.26
$ 19,953.00 $ 29,847.00 $ 12,819.76 $ 13,256.77

2018 2017
$ 26,472.00 $ 16,522.00 12.49% 15.50% 10.29%
$ 170,756.00 $ 160,546.00

$ 43,184.00 $ 34,470.00 54.62% 54.37% 44.30%

$ 79,419.00 $ 77,810.00

$ 5,948.00 $ 4,213.00 3.38% 3.48% 2.62%

$ 170,756.00 $ 160,546.00

$ 1,179.00 $ 1,262.00 0.67% 0.69% 0.79%

$ 170,756.00 $ 160,546.00
 2022 2023 2024

$ 194,609.39 $ 206,243.39 $ 218,572.88

$ 23,315.25 $ 25,561.01 $ 28,023.09
$ 217,924.64 $ 231,804.40 $ 246,595.96

$ 24,360.49 $ 25,912.02 $ 27,565.48

$ 33,424.73 $ 35,553.57 $ 37,822.26
$ 44,939.60 $ 47,801.83 $ 50,852.09
$ 47,491.50 $ 50,516.26 $ 53,739.73
$ 1,922.58 $ 2,045.03 $ 2,175.52
$ 34,441.12 $ 36,634.69 $ 38,972.37
$ 186,580.01 $ 198,463.41 $ 211,127.47
$ 31,344.63 $ 33,340.99 $ 35,468.50

$ (13,401.37) $ (14,975.15) $ (16,733.73)

$ (75.93) $ (80.77) $ (85.92)
$ 3,178.36 $ 3,380.79 $ 3,596.52
$ (10,298.95) $ (11,675.12) $ (13,223.13)
$ 21,045.68 $ 21,665.86 $ 22,245.36
$ 7,365.99 $ 7,583.05 $ 7,785.88
$ 13,679.69 $ 14,082.81 $ 14,459.49

Projections using P&L

12.76% A/R $ 24,589.19

A/P $ 46,407.42
51.10%
Adv billings and cust deposits $ 6,093.12

3.16% Accrued taxes $ 1,377.88

0.72%
 2019 2018 2017

7.32% 4.63% 5.98%

-3.89% 23.16% 9.63%

ing P&L

$ 26,149.63 $ 27,812.06 $ 29,583.43 $ 31,471.16

$ 49,352.44 $ 52,489.97 $ 55,833.09 $ 59,395.83

$ 6,479.79 $ 6,891.74 $ 7,330.68 $ 7,798.45

$ 1,465.32 $ 1,558.47 $ 1,657.73 $ 1,763.51

Consolidated Balance Sheets
Dollars in millions except per share amounts
2019
Assets
Current Assets
Cash and cash equivalents $ 12,130.00
Accounts receivable – net of allowances for doubtful accounts of $1,235 and $907 $ 22,636.00
Prepaid expenses $ 1,631.00
Other current assets $ 18,364.00
Total current assets $ 54,761.00
Noncurrent inventories and theatrical film and television production costs $ 12,434.00
Property, Plant and Equipment – Net $ 130,128.00
Goodwill $ 146,241.00
Licenses – Net $ 97,907.00
Trademarks and Trade Names – Net $ 23,567.00
Distribution Networks – Net $ 15,345.00
Other Intangible Assets – Net $ 20,798.00
Investments in and Advances to Equity Affiliates $ 3,695.00
Operating lease right-of-use assets $ 24,039.00
Other Assets $ 22,754.00
Total Assets $ 551,669.00
Liabilities and Stockholders’ Equity
Current Liabilities
Debt maturing within one year $ 11,838.00
Accounts payable and accrued liabilities $ 45,956.00
Advanced billings and customer deposits $ 6,124.00
Accrued taxes $ 1,212.00
Dividends payable $ 3,781.00
Total current liabilities $ 68,911.00
Long-Term Debt $ 151,309.00
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes $ 59,502.00
Postemployment benefit obligation $ 18,788.00
Operating lease liabilities $ 21,804.00
Other noncurrent liabilities $ 29,421.00
Total deferred credits and other noncurrent liabilities $ 129,515.00
Stockholders’ Equity
Preferred stock ($1 par value, 5% cumulative, 10,000,000 authorized,
48,000 shares issued and outstanding at December 31, 2019
and 0 issued and outstanding at December 31, 2018) 0
Common stock ($1 par value, 14,000,000,000 authorized at December 31, 2019
and December 31, 2018: issued 7,620,748,598 at December 31, 2019
and at December 31, 2018) 7621.00
Additional paid-in capital $ 126,279.00
Retained earnings $ 57,936.00
Treasury stock (366,193,458 at December 31, 2019
and 339,120,073 at December 31, 2018, at cost) $ (13,085.00)
Accumulated other comprehensive income $ 5,470.00
Noncontrolling interest $ 17,713.00
Total stockholders’ equity $ 201,934.00
Total Liabilities and Stockholders’ Equity $ 551,669.00
 2018 2017

$ 5,204.00 $ 50,498.00
$ 26,472.00 $ 16,522.00
$ 2,047.00 $ 1,369.00
$ 17,704.00 $ 10,757.00
$ 51,427.00 $ 79,146.00
$ 7,713.00 $ -
$ 131,473.00 $ 125,222.00
$ 146,370.00 $ 105,449.00
$ 96,144.00 $ 96,136.00
$ 24,345.00 $ 7,021.00
$ 17,069.00 $ -
$ 26,269.00 $ 11,119.00
$ 6,245.00 $ 1,560.00
$ - $ -
$ 24,809.00 $ 18,444.00
$ 531,864.00 $ 444,097.00

$ 10,255.00 $ 38,374.00
$ 43,184.00 $ 34,470.00
$ 5,948.00 $ 4,213.00
$ 1,179.00 $ 1,262.00
$ 3,854.00 $ 3,070.00
$ 64,420.00 $ 81,389.00
$ 166,250.00 $ 125,972.00

$ 57,859.00 $ 43,207.00
$ 19,218.00 $ 31,775.00
$ - $ -
$ 30,233.00 $ 19,747.00
$ 107,310.00 $ 94,729.00

0 0

7621.00 6495.00
$ 125,525.00 $ 89,563.00
$ 58,753.00 $ 50,500.00
$ (12,059.00) $ (12,714.00)
$ 4,249.00 $ 7,017.00
$ 9,795.00 $ 1,146.00
$ 193,884.00 $ 142,007.00
$ 531,864.00 $ 444,097.00
 2019
Assets
Current Assets
Cash and cash equivalents $ 12,130.00
Accounts receivable – net of allowances for doubtful accounts of $1,235 and $907 $ 22,636.00
Prepaid expenses $ 1,631.00
Other current assets $ 18,364.00
Total current assets $ 54,761.00
Noncurrent inventories and theatrical film and television production costs $ 12,434.00
Property, Plant and Equipment – Net $ 130,128.00
Goodwill $ 146,241.00
Licenses – Net $ 97,907.00
Trademarks and Trade Names – Net $ 23,567.00
Distribution Networks – Net $ 15,345.00
Other Intangible Assets – Net $ 20,798.00
Investments in and Advances to Equity Affiliates $ 3,695.00
Operating lease right-of-use assets $ 24,039.00
Other Assets $ 22,754.00
Total Assets $ 551,669.00
Liabilities and Stockholders’ Equity
Current Liabilities
Debt maturing within one year $ 11,838.00
Accounts payable and accrued liabilities $ 45,956.00
Advanced billings and customer deposits $ 6,124.00
Accrued taxes $ 1,212.00
Dividends payable $ 3,781.00
Total current liabilities $ 68,911.00
Long-Term Debt $ 151,309.00
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes $ 59,502.00
Postemployment benefit obligation $ 18,788.00
Operating lease liabilities $ 21,804.00
Other noncurrent liabilities $ 29,421.00
Total deferred credits and other noncurrent liabilities $ 129,515.00
Stockholders’ Equity
Preferred stock ($1 par value, 5% cumulative, 10,000,000 authorized,
48,000 shares issued and outstanding at December 31, 2019
and 0 issued and outstanding at December 31, 2018) 0
Common stock ($1 par value, 14,000,000,000 authorized at December 31, 2019
and December 31, 2018: issued 7,620,748,598 at December 31, 2019
and at December 31, 2018) 7,621
Additional paid-in capital $ 126,279.00
Retained earnings $ 57,936.00
Treasury stock (366,193,458 at December 31, 2019
and 339,120,073 at December 31, 2018, at cost) $ (13,085.00)
Accumulated other comprehensive income $ 5,470.00
Noncontrolling interest $ 17,713.00
Total stockholders’ equity $ 201,934.00
Total Liabilities and Stockholders’ Equity $ 551,669.00
 2018 2017 2020 2021 2022

$ 5,204.00 $ 50,498.00 $ 29,894.23 $ 33,404.81 $ 37,327.66

$ 26,472.00 $ 16,522.00 $ 26,303.57 $ 29,392.49 $ 32,844.16
$ 2,047.00 $ 1,369.00 $ 2,031.80 $ 2,270.41 $ 2,537.03
$ 17,704.00 $ 10,757.00 $ 18,657.37 $ 20,848.37 $ 23,296.67
$ 51,427.00 $ 79,146.00 76887 85916 96006
$ 7,713.00 $ - $ 7,611.29 $ 8,505.11 $ 9,503.90
$ 131,473.00 $ 125,222.00 $ 157,204.55 $ 175,665.65 $ 196,294.70
$ 146,370.00 $ 105,449.00 $ 159,812.71 $ 178,580.09 $ 199,551.40
$ 96,144.00 $ 96,136.00 $ 118,095.52 $ 131,963.90 $ 147,460.90
$ 24,345.00 $ 7,021.00 $ 21,432.45 $ 23,949.34 $ 26,761.80
$ 17,069.00 $ - $ 12,310.24 $ 13,755.88 $ 15,371.28
$ 26,269.00 $ 11,119.00 $ 23,040.55 $ 25,746.28 $ 28,769.76
$ 6,245.00 $ 1,560.00 $ 4,510.86 $ 5,040.59 $ 5,632.52
$ - $ - $ 8,954.00 $ 10,005.50 $ 11,180.48
$ 24,809.00 $ 18,444.00 $ 26,594.34 $ 29,717.41 $ 33,207.23
$ 531,864.00 $ 444,097.00 616453 688846 769739

$ 10,255.00 $ 38,374.00 $ 26,127.11 $ 29,195.31 $ 32,623.82

$ 43,184.00 $ 34,470.00 $ 49,750.97 $ 55,593.40 $ 62,121.94
$ 5,948.00 $ 4,213.00 $ 6,528.41 $ 7,295.07 $ 8,151.76
$ 1,179.00 $ 1,262.00 $ 1,490.88 $ 1,665.96 $ 1,861.60
$ 3,854.00 $ 3,070.00 $ 4,317.82 $ 4,824.87 $ 5,391.48
$ 64,420.00 $ 81,389.00 88215.187477 98574.61497 110150.58738
$ 166,250.00 $ 125,972.00 $ 178,877.05 $ 199,883.23 $ 223,356.24

$ 57,859.00 $ 43,207.00 $ 64,508.83 $ 72,084.34 $ 80,549.46

$ 19,218.00 $ 31,775.00 $ 29,125.30 $ 32,545.59 $ 36,367.53
$ - $ - $ 8,121.51 $ 9,075.25 $ 10,140.98
$ 30,233.00 $ 19,747.00 $ 31,776.10 $ 35,507.68 $ 39,677.47
$ 107,310.00 $ 94,729.00 133531.73628 149212.84947 166735.45232

0 0

7,621 6,495
$ 125,525.00 $ 89,563.00
$ 58,753.00 $ 50,500.00
$ (12,059.00) $ (12,714.00)
$ 4,249.00 $ 7,017.00
$ 9,795.00 $ 1,146.00
$ 193,884.00 $ 142,007.00 $ 215,829.50 $ 241,175.14 $ 269,497.21
$ 531,864.00 $ 444,097.00 $ 616,453.48 $ 688,845.83 $ 769,739.48
 2023 2024 2,019 2018
4% 20% 12%

$ 41,711.18 $ 46,609.48
$ 36,701.16 $ 41,011.11
$ 2,834.96 $ 3,167.88
$ 26,032.48 $ 29,089.57
107280 119878
$ 10,619.97 $ 11,867.12 capex
$ 219,346.30 $ 245,104.92 $ 27,076.55 $ 18,461.10
$ 222,985.44 $ 249,171.42
$ 164,777.76 $ 184,128.21
$ 29,904.54 $ 33,416.33
$ 17,176.39 $ 19,193.47
$ 32,148.30 $ 35,923.59
$ 6,293.97 $ 7,033.10
$ 12,493.44 $ 13,960.59
$ 37,106.87 $ 41,464.47
860133 961141

$ 36,454.95 $ 40,735.99
$ 69,417.14 $ 77,569.05
$ 9,109.05 $ 10,178.75
$ 2,080.21 $ 2,324.50
$ 6,024.62 $ 6,732.11
123085.96797 137540.39693
$ 249,585.77 $ 278,895.52

$ 90,008.68 $ 100,578.72
$ 40,638.30 $ 45,410.60
$ 11,331.88 $ 12,662.62
$ 44,336.94 $ 49,543.59
186315.79759 208195.53339
$ 301,145.23 $ 336,509.81
$ 860,132.77 $ 961,141.26
Consolidated Statements of Cash Flows
Dollars in millions

Operating Activities
Net income
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
Amortization of film and television costs
Undistributed earnings from investments in equity affiliates
Provision for uncollectible accounts
Deferred income tax expense (benefit)
Net (gain) loss from sale of investments, net of impairments
Pension and postretirement benefit expense (credit)
Actuarial (gain) loss on pension and postretirement benefits
Asset abandonments and impairments
Changes in operating assets and liabilities:
Receivables
Other current assets, inventories and theatrical film and television production costs
Accounts payable and other accrued liabilities
Equipment installment receivables and related sales
Deferred customer contract acquisition and fulfillment costs
Postretirement claims and contributions
Other − net
Total adjustments
Net Cash Provided by Operating Activities
Investing Activities
Capital expenditures:
Purchase of property and equipment
Interest during construction
Acquisitions, net of cash acquired
Dispositions
(Purchases), sales and settlement of securities and investments, net
Advances to and investments in equity affiliates
Cash collections of deferred purchase price
Net Cash Used in Investing Activities
Financing Activities
Net change in short-term borrowings with original maturities of three months or less
Issuance of other short-term borrowings
Repayment of other short-term borrowings
Issuance of long-term debt
Repayment of long-term debt
Payment of vendor financing
Issuance of preferred stock
Purchase of treasury stock
Issuance of treasury stock
Issuance of preferred interests in subsidiary
Dividends paid
Other
Net Cash (Used in) Provided by Financing Activities
Net increase (decrease) in cash and cash equivalents and restricted cash
Cash and cash equivalents and restricted cash beginning of year
Cash and Cash Equivalents and Restricted Cash End of Year
 2019 2018 2017

$ 14,975.00 $ 19,953.00 $ 29,847.00

$ 28,217.00 $ 28,430.00 $ 24,387.00

$ 9,587.00 $ 3,772.00 $ -
$ 295.00 $ 292.00 $ 174.00
$ 2,575.00 $ 1,791.00 $ 1,642.00
$ 1,806.00 $ 4,931.00 $ (15,265.00)
$ (1,218.00) $ (739.00) $ (282.00)
$ (2,002.00) $ (1,148.00) $ (1,031.00)
$ 5,171.00 $ (3,412.00) $ 1,258.00
$ 1,458.00 $ 46.00 $ 2,914.00

$ 2,812.00 $ (1,580.00) $ (986.00)

$ (12,852.00) $ (6,442.00) $ (778.00)
$ (1,524.00) $ 1,602.00 $ 816.00
$ 548.00 $ (490.00) $ (1,239.00)
$ (910.00) $ (3,458.00) $ (1,422.00)
$ (1,008.00) $ (936.00) $ (2,064.00)
$ 738.00 $ 990.00 $ 39.00
$ 33,693.00 $ 23,649.00 $ 8,163.00
$ 48,668.00 $ 43,602.00 $ 38,010.00

$ (19,435.00) $ (20,758.00) $ (20,647.00) 2019 2018 2017

$ (200.00) $ (493.00) $ (903.00) $ (19,635.00) $ (21,251.00) $ (21,550.00)
$ (1,809.00) $ (43,309.00) $ 1,123.00 -8% -1%
$ 4,684.00 $ 2,148.00 $ 59.00
$ 435.00 $ (183.00) $ 449.00 -4%
$ (365.00) $ (1,050.00) $ -
$ - $ 500.00 $ 976.00
$ (16,690.00) $ (63,145.00) $ (18,943.00)

$ (276.00) $ (821.00) $ (2.00)

$ 4,012.00 $ 4,898.00 $ -
$ (6,904.00) $ (2,098.00) $ -
$ 17,039.00 $ 41,875.00 $ 48,793.00
$ (27,592.00) $ (52,643.00) $ (12,339.00)
$ (3,050.00) $ (560.00) $ (572.00)
$ 1,164.00 $ - $ -
$ (2,417.00) $ (609.00) $ (463.00)
$ 631.00 $ 745.00 $ 33.00
$ 7,876.00 $ - $ -
$ (14,888.00) $ (13,410.00) $ (12,038.00)
$ (678.00) $ (3,366.00) $ 2,518.00
$ (25,083.00) $ (25,989.00) $ 25,930.00
$ 6,895.00 $ (45,532.00) $ 44,997.00
$ 5,400.00 $ 50,932.00 $ 5,935.00
$ 12,295.00 $ 5,400.00 $ 50,932.00
Short-Term Solvency or Liquidity Measures
Current Ratio
Quick Ratio
Cash Ratio

Long-Term Solvency Measures (Financial Leverage Ratios)

Total Debt Ratio
Debt-Equity Ratio
Equity Multiplier
Times Interest Earned (TIE)
Cash Coverage Ratio
Debt to EBITDA

Asset Management and Turnover Measures

Receivables Turnover
Day's sales in Receivables
Payables Turnover
Day's sales in Payables
Total Asset Turnover
Capital Intensity

Profitability Measures
Profit Margin
EBITDA Margin
ROA
ROE
Du pont
Market Value Measures

Price-Earnings (PE) Ratio

Market-to-Book Ratio
Market Capitalization
Enterprise Value (EV)
EV Multiple
 2019 2018

=Current Assets/Current Liabilities 0.79 0.80

=Current Assets-Inventory/Current Liabilities 0.79 0.80
=Cash/Current Liabilities 0.18 0.08

=Total Assets-Total Equity/ Total Assets 0.63 0.64

=Total Debt/Total Equity 0.75 0.86
=Total Assets/Total Equity 2.73 2.74
=EBIT/Interest 3.32 3.28
=EBITDA/Interest 6.67 6.85
=DEBT/EBITDA 2.69 3.05

=Sales/Accounts Receivables 8.00 6.45

=365/Receivables Turnover 45.60 56.59
=COGS/Accounts Payable 1.83 1.84
=365/Payables Turnover 199.36 198.47
=Sales/Total Assets 0.33 0.32
=Total Assets/Sales 3.04 3.11

=Net Income/Sales 8% 12%

=EBITDA/Sales 31% 32%
=Net Income/Total Assets 3% 4%
=Net Income/Total Equity 7% 10%
=(Net income/Sales) X(Sales/Assets)X(Assets/Equity) 7% 10%

=Price per share/Earnings per share 18.76 11.39

=Market value per share/Book Value per share 1.29 1.14
=Price per share * shares outstanding 260468.23 220990.82
=Market Capitalization+Market value of interest bearing debt-Cash 451002.23 402086.82
=EV/EBITDA 8.03 7.37

EPS 1.89 2.85

Weighted average number of common shares outstanding 7319 6778
Weighted average number of common shares outstanding with dilution 7348 6806
End of period common shares outstanding 7255 7282
Book Value per share 27.84 26.63
Book Value per share (Diluton) 27.48 28.49
31.36 35.65
33.51 32.11
37.84 33.58
39.08 28.54
Stock price (Average) 35.4475 32.47
 2017 2019 2018 2017
CHANGE
0.97 -0.5% -17.9%
0.97 -0.5% -17.9%
0.62 117.9% -87.0%

0.68 -0.2% -6.6%

0.89 -12.6% -3.3%
3.13 -0.4% -12.3%
3.17 1.2% 3.5%
7.04 -2.7% -2.7%
2.84 -11.7% 7.4%

9.72 24.1% -33.6%

37.56 -19.4% 50.6%
2.26 -0.4% -18.5%
161.70 0.4% 22.7%
0.36 2.3% -11.2%
2.77 -2.3% 12.6%

19% -29.3% -37.1%

28% -2.9% 15.6%
7% -27.6% -44.2%
21% -27.9% -51.0%
21% -27.9% -51.0%

8.26 64.6% 37.9%

1.71 13.2% -33.4%
243192.85 17.9% -9.1%
358186.85 12.2% 12.3%
8.08 8.9% -8.7%

4.76
 6164
6183
6139
23.13
22.97
41.55
37.73
39.17
38.88
39.3325
 YEAR ### ### ###

ADDITIONAL R/E $ 87.00 $ 6,543.00 $ 17,809.00

Addition to retained earnings/Net income 0.6% 32.8% 59.7%

INTERNAL GROWTH RATE 0.02% 1.25% 4.18%

SUSTAINABLE GROWTH RATE 0.04% 3.49% 14.34%

WACC E/E+D * CE + D/E+D* CD * (1-TAX)

TAX RATE 35%

Cost of Equity 20%
Cost of Debt 6%
EQUITY $ 201,934.00
DEBT $ 151,309.00
WACC 13.10%

2019 2018
EBIT $ 27,955.00 $ 26,096.00
TAX RATE 0.35 0.35
Accounts receivable $ 22,636.00 $ 26,472.00
Prepaid expenses $ 1,631.00 $ 2,047.00
Other current assets $ 18,364.00 $ 17,704.00

Accounts payable and accrued liabilities $ 45,956.00 $ 43,184.00

Advanced billings and customer deposits $ 6,124.00 $ 5,948.00
Accrued taxes $ 1,212.00 $ 1,179.00
NWC $ (10,661.00) $ (4,088.00)
Changes in NWC $ 6,573.00 $ (7,209.00)

Depreciation and amortization $ 28,217.00 $ 28,430.00

CAPEX $ 19,635.00 $ 21,251.00

FCFF $ 33,325.75 $ 16,932.40

Cal.Year Year
2019 0
2020 1
2021 2
2022 3
2023 4
2024 5
D/E+D* CD * (1-TAX)
EBIT * (1-TAX) + DEPRECIATION - CAPEX +/- CHANGES IN NW

2017 2020 2021 2022

$ 19,970.00 $ 27,712.41 $ 29,471.04 $ 31,344.63
0.35 0.35 0.35 0.35
$ 16,522.00 $ 24,589.19 $ 26,149.63 $ 27,812.06
$ 1,369.00 $ 2,031.80 $ 2,270.41 $ 2,537.03
$ 10,757.00 $ 18,657.37 $ 20,848.37 $ 23,296.67

$ 34,470.00 $ 46,407.42 $ 49,352.44 $ 52,489.97

$ 4,213.00 $ 6,093.12 $ 6,479.79 $ 6,891.74
$ 1,262.00 $ 1,377.88 $ 1,465.32 $ 1,558.47
$ (11,297.00) $ (8,600.06) $ (8,029.15) $ (7,294.42)
$ 2,060.94 $ 570.90 $ 734.73

$ 24,387.00 $ 30,450.08 $ 32,382.44 $ 34,441.12

$ 21,550.00 $ 18,752.23 $ 17,909.14 $ 17,103.97

$ 27,649.97 $ 33,058.57 $ 36,976.43

Valuation Model

Growth FCFF Term. Val Total PVs

$33,326 $33,326 $33,326
$27,650 $27,650 $24,447
$33,059 $33,059 $25,842
$36,976 $36,976 $25,556
$41,048 $41,048 $25,083
2.50% $45,285 $437,744 $483,029 $260,969

Firm Value $395,223

Debt $163,147
Cash and cash equivalents $12,130

Equity Value $244,206

Shares Outstandings 7348

Intrinsic Value of Shares $33.23
RECIATION - CAPEX +/- CHANGES IN NWC

2023 2024
$ 33,340.99 $ 35,468.50
0.35 0.35
$ 29,583.43 $ 31,471.16
$ 2,834.96 $ 3,167.88
$ 26,032.48 $ 29,089.57

$ 55,833.09 $ 59,395.83
$ 7,330.68 $ 7,798.45
$ 1,657.73 $ 1,763.51
$ (6,370.63) $ (5,229.18)
$ 923.79 $ 1,141.45

$ 36,634.69 $ 38,972.37

$ 16,334.99 $ 15,600.58

$ 41,047.56 $ 45,284.87
 2019 2018
Operating Revenues
Service 90.2% 89.2%
Equipment 9.8% 10.8%
Total operating revenues 100.0% 100.0%
Operating Expenses
Cost of revenues
Equipment 10.3% 11.6%
Broadcast, programming and operations 17.2% 15.7%
Other cost of revenues (exclusive of depreciation and amortization shown separately below 19.0% 19.3%
Selling, general and administrative 21.8% 21.5%
Asset abandonments and impairments 0.8% 0.0%
Depreciation and amortization 15.6% 16.6%
Total operating expenses 84.6% 84.7%
Operating Income 15.4% 15.3%
Other Income (Expense)
Interest expense -4.6% -4.7%
Equity in net income (loss) of affiliates 0.0% 0.0%
Other income (expense) – net -0.6% 4.0%
Total other income (expense) -5.2% -0.7%
Income Before Income Taxes 10.2% 14.6%
Income tax (benefit) expense 1.9% 2.9%
Net Income 8.3% 11.7%
 2017 AVERAGE

90.7%
9.3%
100.0%

11.7% 11.2%
13.2% 15.3%
23.6% 20.6%
22.1% 21.8%
1.8% 0.9%
15.2% 15.8%
87.6%
12.4%

-3.9%
-0.1% -0.03%
1.0% 1.46%
-3.0%
9.4%
-9.2%
18.6%
 2019 2018
Assets
Current Assets
Cash and cash equivalents 2.2% 1.0%
Accounts receivable – net of allowances for doubtful accounts of $1,235 and $907 4.1% 5.0%
Prepaid expenses 0.3% 0.4%
Other current assets 3.3% 3.3%
Total current assets 9.9% 9.7%
Noncurrent inventories and theatrical film and television production costs 2.3% 1.5%
Property, Plant and Equipment – Net 23.6% 24.7%
Goodwill 26.5% 27.5%
Licenses – Net 17.7% 18.1%
Trademarks and Trade Names – Net 4.3% 4.6%
Distribution Networks – Net 2.8% 3.2%
Other Intangible Assets – Net 3.8% 4.9%
Investments in and Advances to Equity Affiliates 0.7% 1.2%
Operating lease right-of-use assets 4.4% 0.0%
Other Assets 4.1% 4.7%
Total Assets 100.0% 100.0%
Liabilities and Stockholders’ Equity
Current Liabilities
Debt maturing within one year 2.1% 1.9%
Accounts payable and accrued liabilities 8.3% 8.1%
Advanced billings and customer deposits 1.1% 1.1%
Accrued taxes 0.2% 0.2%
Dividends payable 0.7% 0.7%
Total current liabilities 12.5% 12.1%
Long-Term Debt 27.4% 31.3%
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes 10.8% 10.9%
Postemployment benefit obligation 3.4% 3.6%
Operating lease liabilities 4.0% 0.0%
Other noncurrent liabilities 5.3% 5.7%
Total deferred credits and other noncurrent liabilities 23.5% 20.2%
Stockholders’ Equity
Preferred stock ($1 par value, 5% cumulative, 10,000,000 authorized,
48,000 shares issued and outstanding at December 31, 2019
and 0 issued and outstanding at December 31, 2018)
Common stock ($1 par value, 14,000,000,000 authorized at December 31, 2019
and December 31, 2018: issued 7,620,748,598 at December 31, 2019
and at December 31, 2018) 1.4% 1.4%
Additional paid-in capital 22.9% 23.6%
Retained earnings 10.5% 11.0%
Treasury stock (366,193,458 at December 31, 2019
and 339,120,073 at December 31, 2018, at cost) -2.4% -2.3%
Accumulated other comprehensive income 1.0% 0.8%
Noncontrolling interest 3.2% 1.8%
Total stockholders’ equity 36.6% 36.5%
Total Liabilities and Stockholders’ Equity 100.0% 100.0%
 2017 AVERAGE

11.4% 4.8%
3.7% 4.3%
0.3% 0.3%
2.4% 3.0%
17.8%
0.0% 1.2%
28.2% 25.5%
23.7% 25.9%
21.6% 19.2%
1.6% 3.5%
0.0% 2.0%
2.5% 3.7%
0.4% 0.7%
0.0% 1.5%
4.2% 4.3%
100.0%

8.6% 4.2%
7.8% 8.1%
0.9% 1.1%
0.3% 0.2%
0.7% 0.7%
18.3%
28.4% 29.0%

9.7% 10.5%
7.2% 4.7%
0.0% 1.3%
4.4% 5.2%
21.3%

1.5%
20.2%
11.4%
 -2.9%
1.6%
0.3%
32.0% 35.0%
100.0%
 2019
Operating Activities
Net income 9.2%
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 17.3%
Amortization of film and television costs 5.9%
Undistributed earnings from investments in equity affiliates 0.2%
Provision for uncollectible accounts 1.6%
Deferred income tax expense (benefit) 1.1%
Net (gain) loss from sale of investments, net of impairments -0.7%
Pension and postretirement benefit expense (credit) -1.2%
Actuarial (gain) loss on pension and postretirement benefits 3.2%
Asset abandonments and impairments 0.9%
Changes in operating assets and liabilities:
Receivables 1.7%
Other current assets, inventories and theatrical film and television production costs -7.9%
Accounts payable and other accrued liabilities -0.9%
Equipment installment receivables and related sales 0.3%
Deferred customer contract acquisition and fulfillment costs -0.6%
Postretirement claims and contributions -0.6%
Other − net 0.5%
Total adjustments 20.6%
Net Cash Provided by Operating Activities 29.8%
Investing Activities
Capital expenditures:
Purchase of property and equipment -11.9%
Interest during construction -0.1%
Acquisitions, net of cash acquired -1.1%
Dispositions 2.9%
(Purchases), sales and settlement of securities and investments, net 0.3%
Advances to and investments in equity affiliates -0.2%
Cash collections of deferred purchase price 0.0%
Net Cash Used in Investing Activities -10.2%
Financing Activities
Net change in short-term borrowings with original maturities of three months or less -0.2%
Issuance of other short-term borrowings 2.5%
Repayment of other short-term borrowings -4.2%
Issuance of long-term debt 10.4%
Repayment of long-term debt -16.9%
Payment of vendor financing -1.9%
Issuance of preferred stock 0.7%
Purchase of treasury stock -1.5%
Issuance of treasury stock 0.4%
Issuance of preferred interests in subsidiary 4.8%
Dividends paid -9.1%
Other -0.4%
Net Cash (Used in) Provided by Financing Activities -15.3%
Net increase (decrease) in cash and cash equivalents and restricted cash 4.2%
Cash and cash equivalents and restricted cash beginning of year 3.3%
Cash and Cash Equivalents and Restricted Cash End of Year 7.5%
 2018 2017

13.1% 20.5%

18.7% 16.7%
2.5% 0.0%
0.2% 0.1%
1.2% 1.1%
3.2% -10.5%
-0.5% -0.2%
-0.8% -0.7%
-2.2% 0.9%
0.0% 2.0%

-1.0% -0.7%
-4.2% -0.5%
1.1% 0.6%
-0.3% -0.9%
-2.3% -1.0%
-0.6% -1.4%
0.6% 0.0%
15.5% 5.6%
28.6% 26.1%

-13.6% -14.2%
-0.3% -0.6%
-28.4% 0.8%
1.4% 0.0%
-0.1% 0.3%
-0.7% 0.0%
0.3% 0.7%
-41.4% -13.0%

-0.5% 0.0%
3.2% 0.0%
-1.4% 0.0%
27.5% 33.5%
-34.6% -8.5%
-0.4% -0.4%
0.0% 0.0%
-0.4% -0.3%
0.5% 0.0%
 0.0% 0.0%
-8.8% -8.3%
-2.2% 1.7%
-17.1% 17.8%
-29.9% 30.9%
33.4% 4.1%
3.5% 35.0%
Modigliani-Miller Theorem Proposition 1 (M&M II)

Vl $ 127,833.15

Vu $ 74,875.00
Debt $ 151,309.00
Tax 35%
Cost of equity 20%
Vl=Vu+Tax shield