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AT&T INC. (NYSE:T) Files An 8-K Other Events

AT&T INC. (NYSE:T) Files An 8-K Other EventsItem 8.01 Other Events.

Operating Expense:

Total Revenue -$3.5B

Operating Expense -$3.5B

Net –

OTHER CHANGES IMPACTING HISTORICAL RESULTS

Consolidated Statements of Income

With our adoption of ASU No. 2017-07, "Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost" (ASU 2017-07), our consolidated statements of income have been adjusted to remove certain components of our net periodic benefit cost from our consolidated operating expenses and include those amounts in "other income (expense) – net." For segment reporting, we continue to include service cost and amortization of net prior service credits in segment operating results as this is the basis on which we analyze our segment results. While operating income is impacted by this standard change, net income and earnings per share are not impacted. The following table summarizes the increase (decrease) on our consolidated income statement.

Operating income

Other income (expense)

Net Income

Operating income

Other income (expense)

Net Income

Q1

$

(508

)

$

$

(457

)

$

Q2

(797

)

(457

)

Q3

(596

)

(458

)

Q4

(922

)

(563

)

Annual

$

(979

)

$

$

(809

)

$

Consolidated Statements of Cash Flows

With our adoption of ASU No. 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments" (ASU 2016-15), our previously reported consolidated statements of cash flows have been adjusted to remove any additional cash received for installment receivables (i.e., AT&T Next) sold to the banks from operating activities and to include those receipts as cash from investing activities. We will continue to record cash received from the banks at the time of sale as cash from operating activities. Modifications made to our securitization program in 2017 should moderate the ongoing impact of ASU 2016-15 as we collect more cash upfront when installment receivables are sold to the banks. The following table summarizes the impact to cash from operations and cash from investing:

Operating Activities

Investing Activities

Operating Activities

Investing Activities

Q1

$

(185

)

$

$

(205

)

$

Q2

(197

)

(157

)

Q3

(283

)

(172

)

Q4

(311

)

(197

)

Annual

$

(976

)

$

$

(731

)

$

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.

About AT&T INC. (NYSE:T)
AT&T Inc. is a holding company. The Company offers communications and digital entertainment services in the United States and the world. It operates through four segments: Business Solutions, Entertainment Group, Consumer Mobility and International. The Business Solutions segment includes various categories, including wireless service, fixed strategic services, legacy voice and data services, other services and wireless equipment. The Entertainment Group segment provides video, Internet and voice communication services to residential customers in the United States and the United States territories. The Consumer Mobility segment provides wireless service to consumers, and wireless wholesale and resale subscribers located in the United States or in the United States territories. The International segment provides video entertainment services to residential customers in Latin America, and wireless data and voice communication services to consumer and business customers in Mexico.